VA Streamlines on Investment Properties

Moving around, whether it be due to transfers or other reasons, cause many veterans to leave behind homes that they have invested time and money in. With today's economy sometimes it makes more sense to rent out the home and have it as an investment property than risking a short sale or foreclosure if the property does not sell. However, some veterans aren't able to charge enough rent to cover the cost of the monthly mortgage payment and can't afford to make up the difference each month. Refinancing the home to take advantage of lower interest rates which result in a lower monthly payment may be the answer.

Veterans with a VA loan should look into a streamline or IRRRL refinance. If you have been trying to refinance you may have been turned away by lenders who say it isn't possible to streamline an investment property. The truth is it is possible to streamline your investment property; the trick is to find a lender who has experience in navigating the investment VA Streamline world.

Refinancing a residential investment property now typically requires an appraisal. As everyone knows the property values have declined, leaving the loan to value, LTV, to be well below what borrowers are hoping for. However, VA streamlines generally don't require appraisals. This is a huge advantage for veterans. Remember, VA loans including refinances don't require PMI due to the fact that the VA guarantee's part of the loan..

With a streamline it isn't necessary to get another certificate of eligibility. When you first received your VA loan you had to certify that you lived or planned to live at the home. Now that you are refinancing the home you just have to provide a utility bill, cable bill or other piece of mail proving that you lived at the residence. You are not required to certify that you are living in the home with a VA Streamline Refinance..

It can be hard on veterans to continue to come up the difference from rent to the mortgage payments. Refinancing can allow you to defer up to two months of mortgage payments. Deferring doesn't mean that you will be skipping payments depending on when your loan closes, you won't have to make that month's payment to your old lender and the next payment is not due until four weeks after the closing. The money saved during those two months can go towards the next payment, other bills, or closing costs if any..

Currently most lenders are requiring proof of income for all types of loans. With the rates of unemployment some veterans can't provide proof of income and are left to struggle with the payments and possibly end up in foreclosure. Fortunately, as long as your mortgage payments are current for the past 12 months no income verification is needed..

Don't let credit problems hold you back from checking into refinancing the home. Unlike FHA and conventional loans, lower credit scores can still be eligible. Because of the VA backing the loan lenders are more willing to take on borrowers with less than perfect credit.

Take advantage of a free consultation with a lender to find out what is possible with your individual circumstance. You may be able to lower your payment, rent your home for less than the payment and move to your new location without the stress of paying hundreds of dollars to make up the difference between the rent amount and mortgage payment each month.