VA Streamline FAQ

We can answer your VA Streamline questions

National Bank Of Kansas City has completed thousands of VA loans including Streamline Refinances over the years. Below is a list of questions we regularly answer from borrowers during the VA loan process. If you have a question that's not listed, do not hesitate to call us at 1-800-375-8096 so we can help.

Are you part of the VA?

National Bank Of Kansas City is not part of the Veteran's Administration nor are we affiliated with the VA. The VA is not a lender. They insure the mortgage, which is why we are able to give a great loan to veterans in all 50 states.

Why should I ask for more information through this website?

The loan officers at National Bank Of Kansas City are VA specialists and have the knowledge to answer your VA mortgage questions. We are a nationwide approved VA lender and set up www.va-mortgage-refinance.com to help veterans and military personnel with home loans.

What is a COE? Where can I get it?

COE stands for Certificate of Eligibility. You will need this certificate as proof that you are eligible for a VA loan. If you need help getting a copy of your COE, mention that when you ask for a no obligation quote, and we will be happy to help you.

Do I need my certificate of eligibility again for a streamlined refinance?

No, there is no need to provide your certificate again when you complete a streamline refinance since you had it when you got your original VA loan.

What are the advantages of VA loan compared to a conventional loan?

The VA loan is a program set up to help active duty and retired military personnel purchase homes. VA loans can provide up to 100% financing on a home at a very competitive rate without the borrower needing to pay mortgage insurance (PMI). It's truly the best way to obtain 100% financing in these unique days.

What is the VA funding fee?

The VA funding fee is added to your loan as a fee to the Veterans Administration. This amount is essentially an insurance premium to the VA for backing your loan so you can obtain a great financing option. Funding fees start at 2.15%* of the base loan amount. Learn more about funding fees.

I am a disabled veteran. Do I need to pay the VA funding fee?

You will be exempt from paying the VA funding fee if you are rated 10% disabled or higher. Be sure to inform your lender if you are exempt from the VA funding fee so you won't be charged at closing.

What causes interest rates to change?

Interest rates can be very volatile and can be difficult to predict in the long term. Normally, as the price for US Treasury Bonds increase, rates will decrease and vice versa. Interest rates are updated regularly, and sometimes they adjust throughout the day if the financial markets are changing.

Does the VA control interest rates for VA loan programs?

No, the VA does not influence interest rates. The interest rates are set by banks buying and selling mortgage bonds just like conventional loans.

I heard the Federal Reserve lowered the prime rate. How does this affect VA loans?

The lowering of the prime rate does not affect VA loan rates as much as people think. While it's related, the Federal Reserve doesn't directly affect long term rates such as the VA home loan.

Does it matter what your credit score is with the VA?

The VA doesn't put a great amount of importance on credit scores. Please contact one of our home loan specialists to request a VA loan quote.

Do VA loans have closing costs?

All VA loans will have some type of closing costs. You may be able to find a loan with no lender fees, but the loan will still have fees for title work and other third party costs involved with buying a house.

What are the benefits of a VA loan compared to a conventional loan?

VA loans can offer 100% financing without a PMI (mortgage insurance). You are eligible for a streamline refinance if rates go down. A streamline refinance does not require a new appraisal. Be sure to request a quote for a streamline refinance if you want more information.

Is there a penalty for pre-payment on a VA loan?

No, there is no pre-payment penalty on a VA loan. You are allowed to pay off the loan partially or in its entirety at any time without a penalty.

Can I purchase an empty lot with a VA loan?

Unfortunately, you cannot. However if you are building a house you can use your VA eligibility for the end financing when the house is nearing completion.

Can I use my VA eligibility multiple times?

Yes, VA loan eligibility is reusable depending on each borrowers situation. In general, if you have paid off your prior VA loan and disposed of the property, you can have your used eligibility restored for additional use. Also, on a one-time only basis, you may have your eligibility restored if your prior VA loan has been paid in full but you still own the property.

What is the difference between closing costs and pre-paid items?

Closing costs are the costs associated with setting up of the loan, including underwriting fees, attorney fees, title insurance, etc. Pre-paid items are the costs related to the maintenance of your loan such as setting up escrow for taxes and insurance. Pre-paid items also cover any interest your loan will accrue from closing time up until the first day of the following month.

What is the fee for a second time use of a VA loan?

3.3% for 100% financing. If you have 5%* to put down then it is only 1.5%. If you are a disabled veteran, you will always be exempt from this fee.**

Can I use a co-borrower to help get approved for a VA loan?

VA guidelines will only allow a spouse to be a co-signer. If the veteran is unmarried then the individual will need to get approved on their own.

Can I use my parent's VA eligibility for myself?

No, only the veteran themselves or the surviving spouse of a veteran killed during active duty is eligible for the VA benefits.

Can I get pre-qualified for a VA loan even if I do not have a house in mind yet?

Yes, you can get pre-qualified at any time for a VA mortgage without a property or house in mind. This is generally the best way to go so you can solve potential problems before you have a sales contract – doing so will make the process easier for all parties involved.

Can I get an interest-only VA loan?

The VA loan does not offer an interest-only option at this time. The most popular loan option is the 30 year fixed.* It gives the best combination of a low payment with a rate that will never change.

Can I use my spouse as a co-borrower?

Yes, your spouse is the only possible co-borrower allowed on a VA loan. You can also use your spouse's income to help get an approval.

Can I use a VA loan to start a business?

Contact the VA directly for more information if you are looking for a business related loan.

Is it possible to have two VA loans at the same time?

Generally, it is not. There are unusual circumstances where it may be possible. Ask your lender, or mention this in your free quote application to find out if it will work for you.

Is there any cost to get pre-qualified for a VA loan?

No, it does not cost anything to get pre-qualified for a VA loan. We will be happy to assist in seeing if pre-approval is possible for you.

What is the difference between a VA loan and a conventional loan?

The VA loan is currently the only legitimate option for 100% financing with a good fixed-interest rate. Conventional loans will cap you at 97%* financing, and will most likely include mortgage insurance if you are borrowing over 80% of the home's value.

Are the VA interest rates better or worse than conventional rates?

It depends on your specific situation. It would be smart to compare both before making a final decision. However, if you have a small or no down payment, the VA loan will most likely be better suited for you.

Is it possible to get a VA loan after a bankruptcy?

The fact you have had a bankruptcy does not in itself disqualify you for a VA home loan. The following rules apply:

• If the bankruptcy was discharged more than 2 years ago, it may be disregarded
• If the bankruptcy was discharged within the last 1 to 2 years, it is probably not possible to determine that you are a satisfactory credit risk unless both of the following requirements are met:
  • you have reestablished satisfactory credit, and
  • the bankruptcy was caused by circumstances beyond your control (such as unemployment, medical bills, etc.)
• If the bankruptcy was discharged within the past 12 months, it will be difficult to determine that you are a satisfactory credit risk

Does my veteran home loan entitlement ever end?

Your VA home loan entitlement is a lifetime benefit that you are given for military service.

My realtor suggested that VA loans are not worth it. Is this true?

Years ago, VA loans were harder to get approved in a timely fashion. But now the approval process is almost identical to a conventional loan.

How do I find out how much of a loan I can afford?

The first step is to get pre-qualified. It's generally a good idea to do this before putting an offer down on a particular house.

How much can I borrow with my VA home loan?

You can borrow 100% up to $417,000 if you are approved for that amount. On a streamline refinance you can borrow the same amount that you currently owe without needing to go through vigorous underwriting analysis or get a new appraisal. If you are planning on buying in Alaska or Hawaii then you may be able to borrow more than $417,000.

Should I consider an adjustable-rate VA loan?

If you believe you will relocate before the temporary fixed-rate term ends, then it would make sense to consider an adjustable-rate VA loan. However, if there is a good chance you will stay long term in this house, the safe bet would be to stick with a fixed-rate.

How can I get more information about a VA loan?

You can contact the VA directly or ask a professional loan consultant who specializes in VA loans. When you fill out the online quote application you will be contacted by one of our loan specialists. Do not hesitate to call us at 1-800-375-8096 and we'll help you answer your questions.

Can I use my Veteran loan benefit to purchase a secondary property?

No, your VA loan has to be used on your primary residence.

I am currently active duty; can I still receive a VA home loan?

Yes but it must be you or your spouse's primary residence.

* For $150,000 loan; 360 monthly payments of $809.26 are based on principal and interest only, and an annual percentage rate (APR) of 5.068%. APR is subject to borrower qualification and subject to change. Third party fees may apply.

** According to the United States Department of Veterans Affairs.