Qualified borrowers can finance all closing costs on a VA Streamline or look to take a higher interest rate and have the lender pay them.
These loans don't allow homeowners to extract cash from their home's equity. Streamlines are vehicles for getting VA borrowers into a cheaper monthly mortgage payment or out of an adjustable-rate loan.
Eligibility & Guidelines
Streamlines are open only to eligible borrowers with a VA mortgage. Homeowners may need to be current on their loan and have no late payments in the past 12 months. Credit and underwriting guidelines will vary by lender.
Borrowers don't need to obtain a Certificate of Eligibility for these loans. But you may need to have obtained your current mortgage at least six months before the Streamline refinance would close.
VA loans come with occupancy requirements, because the program is focused on helping veterans finance primary residences, not investment properties or second homes. But those guidelines are a little looser for VA Streamlines.
For these refinance loans, borrowers simply need to show they occupied the home as their primary residence at one point in time.
VA loans come with an upfront funding fee that helps sustain this historic benefit program. The fee varies depending on the type of loan, the nature of your service and other factors. For a VA Streamline refinance, the funding fee is currently 0.5 percent of the loan amount. The fee can be financed into the loan.
VA borrowers who receive compensation for a service-connected disability are exempt from paying the funding fee. So are qualified surviving spouses.