Your Guide To VA Loans

Those veterans who are thinking to apply for a VA loan for low credit scores have landed at the right page because today we will be taking a detailed look at VA loans and how they work. So, read on for a crash course on VA loans for low credit scores.

Who Can Apply For The VA Loan?

The VA loan program is available for the following people:

  • Veterans
  • Active duty personnel
  • Reserve members
  • National Guards members
  • Surviving spouses of the above

How May The VA Loan Be Used?

The VA loans for low credit scores may be used to:

  • Purchase a house or condominium in a VA approved project
  • Make improvements to a house
  • Build a house
  • Refinance an existing loan
  • Purchase a manufactured home/lot
  • Make the house more energy efficient by installing energy features

Credit Score Requirements

Although the Department of Veteran Affairs does not have a minimum credit score requirement, the VA lender, however, are not as forgiving and have set a criteria on which they base their approval decision. The following are the categories that are used by VA lenders to evaluate your credit score.

  • Below 550 = Bad
  • 550 – 649 = Poor
  • 650 – 699 = Fair
  • 700 – 749 = Good
  • Above 750 = Excellent

VA Loan Benefits

Below are some of the ways a VA loan benefits the borrower:

  • It is a reusable loan
  • There is no down payment requirement
  • The VA has Minimum property requirements
  • Limited closing costs
  • In a VA loan, you do not have to worry about paying mortgage insurance
  • The Department of Veteran Affairs provides dedicated assistance to those veterans who are unable to repay their loan.

Author Bio:

Joan Gallardo with his 18+ years of experience as Senior Loan Officer is a wealth of knowledge dealing with VA loans for low credit scoresThrough his articles, learn about the different properties that can be mortgaged with a VA loan and the benefits it provides to homeowners, especially those with relatively low credit scores.

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