Are you eligible for a va refinance?
The first question which comes to your mind when you think of getting a va refinance is whether you are eligible for getting it or not. As you would have already got a va loan so you are half done over here. They clarify with your income and expenses and see whether you will be able to maintain a balance between your living expenses and paying the monthly instalments regularly.
For this they have two methods to check your eligibility. The first one is called as the residual income method. In this a underwriter finds out whether you will have enough living expenses after paying your monthly instalments and other debts and taxes in which you are entitled to pay. After this they check you debt to income ratio, though this is less strict than the traditional refinancing. After these if they find it satisfactory they provide with the va refinance. When it comes to va streamline refinance they do not seek for eligibility certificate.
In va streamline refinance the terms do not seek for seeing the credits available and also the income checks on your salary. But certain lenders do insist on getting these extra procedures done. Getting all the eligibility for the va refinance and va streamline refinance has been made easier than before for the benefit of the veterans and their spouses.