Many people are getting notices in the mail telling them that they are eligible for either a VA Streamline or a FHA Streamline loan.
What does it mean when it says that you are eligible for a VA streamline or FHA streamline refinance?
It means that you might be eligible to participate in a streamline program where you don’t have to completely re-qualify for a new loan. When you took out your loan, you were required to provide documentation regarding your income, assets and credit profile.
With the FHA and VA streamline programs, you are not required to provide income, asset or credit information (NOTE: although HUD doesn’t require credit information, many lenders are now requiring it — so be sure to ask your loan officer if a minimum credit score is required on a VA streamline loan with the investors that they are using). All that is required (generally speaking) is that you have made your mortgage payments on time for the last 12 months and that you can financially benefit from the FHA or VA streamline transaction.
A FHA or VA streamline refinance is refinancing your mortgage — even though it is much easier and usually faster to do because there are very few moving pieces (when you don’t have to prove income, assets or credit scores, it is much easier to get a loan done).
So if you have gotten a mailer from Wells Fargo, Chase, Citibank, GMAC or any other lender talking about the VA streamline program and how you might be eligible — know that you can speak with any VA approved lender about your file, it is not a requirement that you speak with the lender who sent you the letter!