Did you know VA loans offer up to 100% of the home value? The mortgage particularly designed for the veterans offers generous flexibility to make the loan process cost-effective. It is completely different from conventional mortgages, and it has no maximum mortgage amount. The VA loans seem the perfect solution, right? Now, the loan program might become more attractive for another significant reason – many VA-approved lenders ask for only 500 credit scores. Yes, this is the best deal for every veteran fighting off the perils of bad credit.
Before you submit the application, know all about the necessary details regarding the VA home loan bad credit in Houston. How does the loan work? How can you be eligible for the mortgage? Furthermore, the mortgage is not utilized as a one-time benefit, but beyond that. Numerous questions are waiting to be addressed, right? The federally backed loan makes a great option for eligible veterans. Moreover, limited closing fees and competitive rates are other exciting advantages. So, before you move forward with the application, keep a few necessary things in mind. Let’s take a look below.
To know whether you are eligible
If you are serving or have served in the military, there is a high chance to be eligible. Coast Guard, Air Force, National Guard, Army and Navy – individuals served in these sectors can apply. To document your eligibility, get hold of a Certificate of Eligibility. Besides this, other eligibility requirements are also observed. Usually, the applicants must serve at least 90 days on active duty amid wartime. The VA loan also serves the spouse of an eligible service-member if he went missing. Based on different situations, surviving spouses can get hold of the VA loan.
Use VA loan when you are not ready for a down payment
Making a down payment of 3.5% of the loan value can be crucial for many. This can put a hold on many people’s dream of purchasing a house. In this case, VA saves you from trouble. When borrowers are putting down less than 20%, the private mortgage insurance premium would be included. This is the advantage of utilizing the VA loan program. Irrespective of the down payment you make for VA, you need not worry about the private mortgage insurance premium. This indicates only one fact – VA loan programs come with better interest rates and low closing costs. When you get the nod for a VA loan, don’t forget to check the costs and rates.
So, get hold of the COE and then start looking for a private lender. Make sure you get the favorable mortgage terms and rates. After all, low closing costs, better rates, and a 500-credit score as a benchmark are too attractive to pass. Assess your financial health, and check whether you have at least 500 scores. Additionally, make sure whether this is the perfect fit. Different types of VA loans are available; choose the one suitable for your condition. Of course, seek the help of a VA-approved lender.