Lenders are changing their guidelines for the VA streamline refinance program and many Veterans who currently have a VA loan are getting confused. Some Veterans who inquire about the VA streamline refinance program who have a “bad” credit score are being told that they are not eligible to participate in the VA streamline program with an excuse of something like “because VA changed their credit score requirements on the VA streamline program”.
Which isn’t true.
VA hasn’t changed their credit requirements on the VA streamline refinance program.
But…
What is true is that many lenders have started requiring that Veterans wanting to participate in the VA streamline loan program now have a minimum credit score.
So, in plain English: While VA hasn’t changed their requirements, many lenders have and are now requiring a minimum credit score for all VA streamline refinances.
What This Change Means For Veterans
When a lender changes their guidelines and starts requiring a minimum credit score, it doesn’t mean that you can’t do a VA streamline loan, it means that if a lender tells you “no”, you just need to shop around for another lender. Becasue each lender makes independent risk decisions when setting risk policy for their company, some lenders will require say a 580 credit score while others will require a 620.
Each one is different.
So if you find yourself in the situation where you cannot qualify at one lender for the VA streamline refinance due to a poor credit score – be sure to ask around.
You might be surprised to learn that people are still doing VA streamline refinances with no minimum credit score.
