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Old 08-11-2009, 11:21 AM
 
Location: Where the real happy cows reside!
4,281 posts, read 8,900,810 times
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Has anybody here used the VA streamline loan to reduce their original VA loan mortgage rate?

How was the process? Did you use the same bank?

Any feedback would be greatly appreciated.

Thanks
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Old 08-11-2009, 12:11 PM
 
Location: New Mexico U.S.A.
22,999 posts, read 35,211,728 times
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We have used the "VA streamline loan". The last time was about five years ago.

No, we did not use the same bank. In fact the VA page below urges "Veterans are strongly urged to contact several lenders. There may be big differences in the terms offered by the various lenders you contact." While shopping around for one of our re-financing we ended up re-financing through a military credit union rather than VA (For some specific reasons)"

We have owned four homes in 30 years and re-financed five times.

Read the VA page.
Loan Guaranty Service, IRRRL Facts for Veterans (U.S. Department of Veterans Affairs)


Additional advice:

1. They are not VA loans, the VA guarantees that the loan will be paid off.

2. The VA loan rate is not the lowest rate, that is the maximum rate the VA will allow you to pay. You can shop around for a lower rate.

3. There are a lot of variables, we did finance once for 15 years instead of the normal 30 years. If you can handle it, it can save you a lot. But everyone has different goals and capabilities.

4. Our last "VA streamline loan" had about $700 fees for us (If I recall) some lenders had about $4,000 in various fees. It can be complicated. You are almost at a dissadvantage, so if you know a real expert in the field, seek their advice.



Rich
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Old 08-12-2009, 08:04 PM
 
161 posts, read 467,624 times
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we just went through a va streamline refi. we used a bank different from our original lender. the process was super simple. there was no appraisal, no credit check, no new survey. our original loan was 6.3% and we dropped down to 4.75%. if you have any specific questions, please ask.
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Old 10-21-2009, 10:36 AM
 
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We would love to know who you used to do your va streamline refi.Thanks
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Old 10-28-2009, 10:23 PM
 
50 posts, read 116,722 times
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I am a Vet and did over 50 VA loans for Chase Bank.

A VA streamline loans allows you to streamline your loan with lower costs. They will do a mortgage credit check. This is where the lender will verify if you payments have been made ontime and 90% of the time they will pull your credit. They will not base your streamline off you fico. In fact VAG loans don't use you fico, but that's another class. The lender will charge you .5% funding fee instead of the higher funding fee amount. You won't have appraisal, inspection etc, but you must improve your rate and lower your payments and that will be approved by your lender only, no VA.

VAG is not the lender they only promise the bank that if you default the will cover up to 20% of the 100% of the banks loss so the bank in turn will not lose money. So if you owe $100,000.00 and the bank sells the house for 80k VA will pick up the 20k.

I recommend using the same bank, they have everything and it's faster with the same lender. If not use a big bank, and use a in house Loan Officer. We can drastically cut our fees. We get paid regardless and don't live off commission. Trust me I have taken care of military families and since my husband is still active duty referrals keep me employed. Also, if someone tries to talk you out of your VA say no thank you.
If you move into a conventional loan you might have to pay mortgage insurance which can increase you payments even if you get a lower rate, or worse they may put you in a 1st and a 2nd! If this is all to much to understand.. don't worry just stay in your VA Loan and by the way VA Loans are generally .50% lower in interest rate than other loans. Trust me Poncho_NM isn't right in about 90% of her reponse.
One last really important information. You can only use a lender located in the same state as the property.

Last edited by MilitaryVet; 10-28-2009 at 10:26 PM.. Reason: clarification
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Old 10-29-2009, 06:58 AM
 
Location: New Mexico U.S.A.
22,999 posts, read 35,211,728 times
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Quote:
Originally Posted by MilitaryVet View Post
Trust me Poncho_NM isn't right in about 90% of her reponse.
I beg to differ, just exactly what 90% of my actual experience of owning four homes in 30 years and re-financed five times is incorrect?

Since when is advice by the U.S. Department of Veterans Affairs incorrect?

What part of my statement "No, we did not use the same bank. In fact the VA page below urges "Veterans are strongly urged to contact several lenders." do you not understand?

How many homes have you actually purchased yourself?

I do not agree with the majority of your post.

You were 100% incorrect in my sex.



Richard Sanchez

Last edited by Poncho_NM; 11-09-2012 at 11:06 AM..
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Old 10-29-2009, 10:02 AM
 
50 posts, read 116,722 times
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Richard (male),

I am 38 and have purchase 12 homes half of which have been investment properties, have done over 300 home loans and 50 of which were VA Streamlines and 98 VA Purchases 64 refines.

I am an expert and VA is not. They set guidelines, but do not lend money and do not underwrite loans. From your response I see you may be considererd someone who thinks because they have bought a home the should give professional advice.

A bank can turn down any borrower and does not have to give them a VA insured loan! Most important I am speaking from a lender view not a personal view. FYI, VA doesn't always give the best advice and from my experience they don't always know their policies.

Just smile and wave boys, just smile and waive!
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Old 10-29-2009, 10:10 AM
 
Location: New Mexico U.S.A.
22,999 posts, read 35,211,728 times
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Quote:
Originally Posted by MilitaryVet View Post
I am an expert and VA is not.

Just smile and wave boys, just smile and waive!
I have heard enough. Thanks for your reply.


Rich
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Old 11-02-2009, 09:03 PM
 
Location: Chesterfield, VA
1,218 posts, read 4,237,564 times
Reputation: 532
The main thing I want to add, is that if you are retired and have a rating (not sure if there is a minimum percentage), you DO NOT have to pay a funding fee!!!
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Old 11-05-2009, 04:04 PM
 
50 posts, read 116,722 times
Reputation: 30
10% minimum rating. Must be VA disabled Vet.
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