In comparison to conventional home loans, a VA mortgage loan offers a number of specific advantages. Along with lower mortgage rate and zero down payments, the borrower also gets the options to streamline the mortgages through the Department of Veterans Affairs or the Federal Housing Administration. A VA mortgage loan can be further streamlined without going through normal paperwork and procedures.

The loan can be streamlined without any additional credit appraisal or check. So the borrowers are not required to provide any documents to prove their employment or income. The option makes it easier for the unemployed or the people having credit problem to reduce VA mortgage rates. However, the lenders will check the payment history of the existing mortgage loan. Similar to Interest Rate Reduction Refinance Loan (IRRRL) program, the streamlining process also require borrowers to keep their home loans current.

It is also essential for the borrowers to meet certain eligibility criterions. For becoming eligible for VA streamline refinance, the current loan must be in good standing for at least twelve months. Further, the borrower must be applying for refinancing with the sole objective of reducing his payments and interest rate. Also, the borrower is not allowed to take any part of the refinanced mortgage in cash.

At the same time, the borrower cannot obtain a streamlined mortgage loan whose amount exceeds the original loan amount. Along with possessing Certificate of Eligibility issued through the Veterans Administration, the borrower has to refinance the investment property only through the no-appraisal process. Also, the streamlining facility is available only for the prior service veterans and active-duty military personnel.

A borrower has option to streamline his loan through several lenders. Some lenders even customize the streamline mortgage offer by including additional features. For instance, some lenders allow borrowers not to pay the loan closure charges upfront in cash. Also, you can choose a borrower who charges you lower interest rates. Lenders may also increase the borrowed amount by adding the closing cost to the new loan amount. 



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