The U.S. Department of Veterans Affairs offers a home loan guarantee to U.S. Military veterans and active duty personnel. Basically, any U.S. military veteran or their surviving spouse is qualified for 100 percent financing without having to pay any amount of down payment or PMI or 90% refinancing on a current home.
HOW DOES A VETERAN AFFAIRS HOME LOAN WORK?
The VA mortgage isn’t issued by VA Department. Instead, these loans are issued by approved lenders like mortgage companies and banks but insured by Veteran Affairs. This means that if you are defaulting on your mortgage, VA will back or secure it. This usually translates to a lower amount of down payment and eligible home loans rates.
WHAT ELSE DOES THE VETERAN AFFAIRS HOME LOAN PROGRAM DO?
The Veterans Affairs home loan program similarly offers pre-purchase counseling. Veteran Affairs specialists will sit down with you and discuss the procedure of buying and owning a home, securing finances, and basically understanding the home possession process.
DOES ENTITLEMENT TO A VETERAN AFFAIRS HOME LOAN GUARANTEE A MORTGAGE?
Unluckily, no, it doesn’t. VA can’t force VA lenders for low credit scores Houston to issue you a mortgage; however, it can help to make you a more appealing borrower. You still must satisfy basic income and credit requirements. However, if a home loan lender is concerned, for example, about a veteran’s poor FICO scores, the loan can still be rejected or offered at a higher home loan rate.
WHAT DO I NEED TO GET A VETERAN AFFAIRS HOME LOAN?
You have to get a Certificate of Eligibility (COE). You can get one either from VA lenders for low credit scores Houston or the Department of Veterans Affairs.
HOW DO I GET A VETERAN AFFAIRS HOME LOAN?
Initially, you have to select a home and sign a purchase contract that’s reliant on you receiving a Veteran Affairs mortgage. Next, you should pick a lender and complete a home loan application with your COE. The mortgage lender will then contact the Department of Veterans Affairs to assign an appraiser to decide the market value of the home.
When a Certificate of Reasonable Value has been provided on the home, VA lenders for low credit scores Houston will let you know that you’ve been qualified for your home loan. At that time, you’ll attend the closing where the approved lender or its counsel will describe the terms and conditions of the home loan to you, and you will sign the VA home loan agreement.