A recent change by many lenders has left quite a few veterans out in the cold when it comes to refinance options for their Texas VA home loan. I have been hearing that many people who tried to refinance their current VA loan with the VA streamline refinance program were told by their lender that they needed a minimum credit score of 620 in order to be eligible for the VA streamline refinance program because it was required by VA.
This is not true!
VA does not have a minimum credit score requirement.
What is true, however is that many lenders are now requiring that you have a minimum credit score of 620 in order to do a VA streamline. Many, but not all lenders require this — there are still lenders available who will help you with a VA streamline regardless of your credit score as long as you have made your last 12 months mortgage payments on time.
The VA streamline program is also sometimes referred to as the VA IRRRL program – and it was designed to help veterans lower their interest rates when lower rates are available without having to provide asset, income, or credit information. The VA streamline refinance is the absolute easiest way to lower your monthly payment if you are currently in a VA loan.
