The VA loans do not have a credit score requirement, and they have earned the status of a bad credit mortgage. Now, millions and millions of veterans and active-duty members have secured the home loan. What’s the secret to getting a VA loan? Does everyone passing service eligibility get VA loan benefits? Without an iota of doubt, VA loan is a viable option for various numbers. But you should find solutions to the initial problems faced by almost every borrower.
For starters, VA home loan bad credit in Houston provides many advantages, including zero down payments. Of course, you might have heard about the zero credit score policy for the VA loans, as well. But did you know the lender designed the credit score requirement and not the Department of Veterans Affairs? Even though the private lenders issue the credit score requirement, the benchmark is comparatively lower than the conventional loans. For instance, a VA loan is a perfect option for every eligible borrower with lower than 600 scores. As long as you have at least 580 scores, you can qualify for it. But there are a few challenges that almost every VA borrower frequently faces. So, here’s a look at the common challenges and possible solutions.
Look at your income
Besides the no down payment benefit, VA loan for bad credit is a safe haven for the active military members and veterans. Another reason to choose this option is because of the residual income criteria. This requirement was designed for making sure the borrowers pick affordable properties. The authority wants confirmation on whether you can afford the loan. So, residual income depends on family size and geographical location. To qualify for the requirement, you should have adequate money for gas, food, and other monthly payments.
Manufactured homes are not an option
If your goal is to buy a manufactured home, the path appears to be difficult. VA benefits do not ensure a manufactured home and other property types like mobile homes. You should discuss the matter with your private lender and check what your available options are. After getting full information on your financing option, you can manage the loan process. Buying a manufactured home can happen if you can secure a VA loan guarantee.
You can use VA loan benefits again
VA loan is not a one-time-benefit thing. On the contrary, you can use it as many times you want. If you bought a VA loan in the past but have outgrown the home, you need to settle somewhere bigger. By selling the home and paying off the mortgage, you can reuse the benefit. So, you can purchase another property. Often the eligible veterans may get a one-time restoration as they clear the benefit. Along with it, they get to keep the property. If you bought a property a few years back and paid off the mortgage, you can exercise the loan benefit.
So, the loan for bad credit keeps offering benefits because you earn eligibility for the lifetime. The benefit does not expire ever. Keep these things in mind before purchasing a VA loan!
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.