A mortgage loan is a loan secured by real property through the use of a mortgage note which evidences the existence of the loan and the encumbrance of that realty through the granting of a mortgage which secures the loan. However, the word mortgage alone is most often used to mean mortgage loan. A home buyer or builder can obtain financing (a loan) either to purchase or secure against the property from a financial institution, such as a bank, either directly or indirectly through intermediaries. Features of mortgage loans such as the size of the loan, maturity of the loan, interest rate, method of paying off the loan, and other characteristics can vary considerably.
A VA mortgage loan is different from any other loan. HUD has permitted homeowners to lower the interest rate on FHA & VA insured mortgages since the early 1980's. The "streamline" refers only to the reduced underwriting requirements and the minimal documentation that the borrowers need to supply the lenders. This does not mean that there are no costs involved in the transactions. Some streamlines have costs involved in.
For many people, refinancing mortgage loan is another way of saying 'renewal'. The VA streamline refinance program is not handled by the VA; it is done through VA approved lenders. With VA streamline refinance one doesn't have to document his assets. No appraisal is required on home and no need to provide income documentation.
The first qualification criteria that must be met to participate in the VA Streamline refinance is that the interest rate on the new mortgage loan must be lower than the interest rate on the old loan. Second, VA Streamline refinance guidelines require that the amount of principal and interest that is payable on the mortgage is reduced. It is also needed to have made the last 12 months of payments on mortgage on time.