VA Streamline Refinance: Removing Somone From The Loan

When you participate in the VA streamline / VA IRRRL program, can you remove one of the borrowers from the loan?

This question has been popular with lenders and so we figured we would put more information out about it.

Not unless you plan on fully qualifying for a new VA loan with the remaining person on the loan.

Many times when people get divorced, one spouse gets the house and they continue making the mortgage payment. When it comes time to refinance, in the VA streamline refinance program, both people on the loan still must sign and agree to the refinance – otherwise, it can’t be done as a VA streamline – it will have to be a VA full documentation loan (or perhaps a different type of full-documentation loan).

The VA streamline won’t allow you to remove borrowers, but you can add borrowers in the process. So for example, if you originally bought the house as a single person but have since been married and want to add your new spouse to the loan and title – you can do that with the VA streamline refinance program.

So you can add more borrowers, but you can’t subtract borrowers with the VA streamline refinance. VA is happy to have more people responsible for the loan, but not so happy to have less people responsible for the loan.

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