The very first question that springs up in your mind on hearing of the va refinance plan is that if you hold the eligibility for it. Only if you get a va loan, you can apply for a va refinance. So once you get the va loan, you are half way through. Your monthly salary and your expenditure for a month are checked and whether you will be able to pay the monthly installments properly or not is assessed.
Whether you are eligible is checked on the basis of two methods – the residual income method and the va streamline refinance method. In the first method, your monthly installments, taxes and debts, if any are summed up and deducted from your salary. Whether you will be able o make a living with the remaining amount is checked for.
After this they check how proportionate your salary and debts are. After verifying all these, if they are convinced they issue you a va refinance. But in the case of va streamline refinance there is no checking of the eligibility criterion. The terms and conditions of the va streamline refinance doesn’t state on checking the debt to salary ratio. But there may be few lenders who could demand such proceedings to be done.
Clearing the eligibility criterion for getting loans refinanced through va refinance and va streamline refinance has now been made easier to honor the war veterans and their families.
