Your Complete Guide to the VA STREAMLINE       Home Loan

1. SECTION 1What is a VA STREAMLINE       Loan?
2. SECTION 2Am I Eligible for a VA STREAMLINE       Loan?
3. SECTION 3VA STREAMLINE       Loan Benefits
4. SECTION 4VA STREAMLINE       Loan Rates
5. SECTION 5First-Time Homebuyers
6. SECTION 6VA STREAMLINE       VA STREAMLINE      Loans
7. SECTION 7Refinancing with a VA STREAMLINE       Loan
8. SECTION 8Contract Guidelines
9. SECTION 9The VA STREAMLINE       Loan Process

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What is a VA STREAMLINE       Loan?

 

 

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 Video: The VA STREAMLINE       Loan Process

The VA STREAMLINE       loan is a $0 down mortgage option aVA STREAMLINE      ilable to Veterans, Service Members and select military spouses. VA STREAMLINE       loans are issued by priVA STREAMLINE      te lenders, such as a mortgage company or bank, and guaranteed by the U.S. Department of Veterans Affairs (VA STREAMLINE      ).

The VA STREAMLINE       home loan was created in 1944 by the United States government to help returning service members purchase homes without needing a down payment or excellent credit. This historic program has guaranteed more than 25 million VA STREAMLINE       loans, helping Veterans, active duty military members and their families purchase or refinance a home.

Today, the VA STREAMLINE       mortgage is more important than ever. Scores of Veteran and military buyers found it increasingly difficult to get home financing in the wake of the Great Recession, and many lenders tightened their guidelines again because of the 2020 global pandemic. 

Over the last decade in particular, VA STREAMLINE       loans have provided a lifeline for Veterans and active Military homebuyers facing higher credit score and down payment requirements.

VA STREAMLINE       loans are a specialized loan product, but they aren’t more difficult or cumbersome than other types of home loans. This VA STREAMLINE       loan guide is here to provide you with the tools necessary to navigate your VA STREAMLINE       home purchase or refinance and get the most out of your hard-earned benefit. 

If you're ready to start your VA STREAMLINE       loan, check your eligibility or have specific questions on the VA STREAMLINE       loan, talk with a Veterans United Home Loans specialist today.

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VA STREAMLINE       Loan vs. Traditional Mortgages

Veteran and military homebuyers have access to one of the most unique and powerful loan programs ever created. See how the VA STREAMLINE       Loan compares to a traditional home mortgage:

VA STREAMLINE       Loans	Conventional Loans
0% Down  (for qualified borrowers) VA STREAMLINE       loans are among the last 0% down home loans aVA STREAMLINE      ilable on the market today.	Up to 20% Down Conventional loans generally require down payments that can reach up to 20% to secure a home loan, pushing them out of reach for many homebuyers.
No PMI Since VA STREAMLINE       loans are government backed, banks do not require you to buy PriVA STREAMLINE      te Mortgage Insurance.	PMI Required PriVA STREAMLINE      te Mortgage Insurance is typically required for borrowers who finance more than 80% of their home's VA STREAMLINE      lue, tacking on additional monthly expenses.
Competitive Interest Rates VA STREAMLINE       loans have had the lowest average fixed interest rate on the market for more than five years in a row, according to data from Ellie Mae.	Low Rates at a Cost Buyers often need top-tier credit scores in order to tap into the best conventional mortgage rates. With VA STREAMLINE       loans, Veterans have access to low rates without the need for sky-high credit.
Easier to Qualify The VA STREAMLINE       loan is a hard-earned job benefit created to expand access to homeownership for Veterans and service members. More flexible and forgiving credit underwriting guidelines are a hallmark of the program.	Standard Qualification Procedures Conventional mortgage options often require higher credit scores and down payment requirements than VA STREAMLINE       loans, along with stricter underwriting guidelines in some cases.

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Types of VA STREAMLINE       Loans

The VA STREAMLINE       loan benefit offers qualified Veterans multiple powerful home financing options.

VA STREAMLINE       Purchase Loan

Veterans and service members can use the VA STREAMLINE       loan to purchase new or existing homes with $0 down payment. VA STREAMLINE       purchase loans also allow Veterans to buy single-family homes, condominiums, manufactured homes, multiunit properties (like a duplex) and even new construction.

Policies and guidelines can VA STREAMLINE      ry by lender. Some lenders may not make all of these types of VA STREAMLINE       purchase loans.

VA STREAMLINE       IRRRL

The VA STREAMLINE       Interest Rate Reduction Refinance Loan (IRRRL) is one of the VA STREAMLINE       loan program's two refinance options and the one most Veteran homeowners choose. 

These are also known as VA STREAMLINE       Streamlines, and that's because they're simple, low-cost refinance loans that in some cases might not require credit underwriting, income verification or an appraisal.

The VA STREAMLINE       IRRRL is only for Veterans who currently have a VA STREAMLINE       loan, require your new rate is smaller than your old rate and have a limit on the time it takes to recoup the costs and fees. All of which help ensure Veterans realize the full financial benefit.

VA STREAMLINE       VA Streamline  

The VA STREAMLINE       VA Streamline   allows qualified homeowners to refinance their mortgage and take out cash from their home's equity. These loans are open to Veterans with and without current VA STREAMLINE       loans. Qualified homeowners can typically refinance up to 90 percent of their home's VA STREAMLINE      lue.

Lending guidelines and loan-to-VA STREAMLINE      lue requirements can VA STREAMLINE      ry by lender. Homeowners are not required to take out cash with these loans, which means Veterans with non-VA STREAMLINE       mortgages can use this option as a basic rate-and-term refinance.

VA STREAMLINE       Energy Efficient Mortgage

The VA STREAMLINE       allows Veterans to borrow additional money to pay for energy efficiency improvements to a home, as part of either a home purchase or a refinance. 

Veterans can finance up to an extra $6,000 to cover the cost of qualified improvements, like storm or thermal windows, heat pumps and solar heating and cooling systems. Homeowners can't use this option to purchase appliances, window air conditioning units and other non-permanent additions.

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Exploring the VA STREAMLINE       Loan

The VA STREAMLINE       loan program has helped generations of Veterans, service members and military families achieve the dream of homeownership. At the heart of this benefit is a promise: Because of their selfless service to our country, Veterans have access to a home loan program with flexible guidelines and significant financial benefits, chiefly the ability to purchase with no down payment.

Let’s take a closer look at how VA STREAMLINE       loans work and what it takes to start the VA STREAMLINE       loan process.

What is the VA STREAMLINE       guaranty?

Although the VA STREAMLINE       loan is a federal program, the government generally does not make direct loans to Veterans. Instead, priVA STREAMLINE      te lenders including Veterans United Home Loans finance the loan while the Department of Veterans Affairs offers a guaranty.

This guaranty protects the lender against total loss should the buyer default, which provides an incentive for priVA STREAMLINE      te lenders to offer the VA STREAMLINE       loan with better terms than other mortgage options.

What are VA STREAMLINE       loan limits?

Qualified veterans with their full VA STREAMLINE       loan entitlement can borrow as much as a lender is willing to extend, all without a down payment. The VA STREAMLINE       loan limits only come into play for buyers with less than their full entitlement, either because they have one or more active VA STREAMLINE       loans or because they’ve lost a previous one to foreclosure. To see how the VA STREAMLINE       loan limits might affect you, give us a call at 1-800-884-5560.

What is the VA STREAMLINE       funding fee?

The VA STREAMLINE       Funding Fee goes directly to the VA STREAMLINE       to ensure the program keeps running for future generations of Veteran and military homebuyers by removing any additional burdens off taxpayers and Veterans. 

The fee VA STREAMLINE      ries depending on the borrower's circumstances. For example, if this is your first time using the VA STREAMLINE       home loan program, the funding fee is typically 2.3 percent of the purchase price of the home. For subsequent use of your VA STREAMLINE       loan benefit, the fee is 3.6 percent. The fee for an Interest Rate Reduction Refinance loan is just 0.5 percent, no matter how many times you’ve used the benefit.

VA STREAMLINE       borrowers can roll the funding fee into their overall loan amount. The VA STREAMLINE       also limits closing costs for Veterans and allows sellers to pay most or all of those expenses. Many of our borrowers purchase a home with no money due at closing, but every buyer’s situation is different.

The VA STREAMLINE       also exempts some Veterans and surviving spouses from the funding fee entirely. The most common exemption is for Veterans receiving compensation for a service-connected disability. Surviving spouses with VA STREAMLINE       loan eligibility are also exempt. Only the VA STREAMLINE       can make a determination about funding fee exemptions.

To calculate your VA STREAMLINE       Funding Fee, use Veterans United Home Loans' Funding Fee Calculator here.

Is the VA STREAMLINE       loan a good option?

VA STREAMLINE       loans are arguably the most powerful loan option on the market. They come with a list of big-time benefits, including $0 down payment, no mortgage insurance, flexible and forgiving credit guidelines and the industry's lowest average fixed interest rates. 

Every Veteran buyer's situation is different, and going over all of your loan options with a home loan specialist can help ensure you make the best financial decision possible.

How do I get a VA STREAMLINE       loan?

Talk with a trusted lender that knows VA STREAMLINE       loans and how to get the most from this hard-earned benefit. The process typically starts with getting preapproved, which can often be done in minutes using your phone, laptop or tablet. 

Loan preapproVA STREAMLINE      l is a key first step before making an offer on your dream home. Having that preapproVA STREAMLINE      l letter gives you a clear sense of your buying power and shows sellers and listing agents you have what it takes to get to closing. 

Start my VA STREAMLINE       loan with Veterans United Home Loans -- the Nation's #1 VA STREAMLINE       purchase lender†

If I’ve previously used a VA STREAMLINE       loan, can I use it again?

Yes, this is not a one-time option. Once you earn the VA STREAMLINE       loan benefit, it's yours for life. You can reuse the VA STREAMLINE       loan over and over again, and it's even possible to have more than one active VA STREAMLINE       loan at the same time.

Continue to learn more about VA STREAMLINE       loan eligibility in our next section.