As a branch manager here at Low VA Rates, I constantly talk to Veteran or military homeowners who are skeptical about VA streamline offers they are getting in the mail, on the internet, over the phone and even some in their home from a live person. In many cases, the information being given or received is legit, clear and straightforward. Unfortunately, we do sometimes hear about information that is being shared from a loan officer, telemarketer, or another bank employee that is not completely true and at times, downright illegal!
I hope to be able to share today some tips or tricks for anyone looking to refinance a VA loan via the VA streamline loan program so that regardless of who you are using or intend to use, you can feel a bit better about what you are being told. Here are the basic facts about a VA streamline loan that pretty much all marketing pieces you get or see will outline:
- No appraisal (true by VA rules, but most lenders will require one. Low VA Rates does NOT require one)
- No credit score minimum (true by VA rules but almost always each bank/lender will want some sort of minimum) Low VA Rates is case by case and has approved below 550 FICO scores on a VA streamline.
- No employment/income verification needed. (again true by VA) We will want to make sure you are employed or receive disability or SS or something.
- We have been told Mortgage Investors Corporation or MIC regularly requires money out of pocket or upfront. Again, this is allowed, but we do not see any need to do this.
Now here are some tricks or things to use to try and discover if someone is being deceptive or planning a bait and switch:
- If the lender wants money upfront or out of pocket at the time of application. (VA does not require this and there is no reason for it) If you are being asked for money or a deposit up front, history has shown this is almost always a sign of bad things to come.
- If the lender tells you they can close you in 5-7 days this is almost always to lure you in. Can loans close that fast? Yes, but normally speaking it is not possible.
The VA streamline loan is by far the most popular loan around today for Veterans and military homeowners. You, of course, have to have a VA loan now to take advantage of this VA IRRRL or Interest Rate Reduction Refinance Loan. Please apply on our site or give us a call if you have any questions. We look forward to assisting you.