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Are you one of those veterans who never knew about the wonderful benefits of the VA loans? Even though many of them know about the mortgage program, they did not opt for it because of myths.
Yes, there are multiple myths regarding the VA home loan credit score 550 in Houston, TX. It is better to debunk the misconceptions so that you realize how great the benefits are. So, let’s have a look at the following myths about VA home loans.
Myth #1: VA loan is too expensive
Just because the mortgage comes with a funding fee, it does not mean the loan program is expensive. VA funding is actually a one-time fee, and then you need not pay anything. Most importantly, the VA funding fee is waived in particular scenarios. For instance, veterans who have a service-connected disability can get VA compensation. If there is an eligible surviving spouse, the funding fee can be waived. Veterans who already have pre-existing medical conditions can be eligible for the VA compensation. In case you are eligible to get compensation but not in receipt of being in active duty, the VA funding fee is waived.
Myth #2: You have to be exclusive for the VA loan
There is definitely an eligibility requirement for VA loans. However, the mortgage program is available for active-duty service members, National Guard members, veterans, reservists, and public health service officers. The qualifying requirements set by the lenders vary on a large scale. Also, service members presently working overseas can get approved through their spouses. Many buyers have a doubt about whether it is possible to navigate the home-buying process while serving overseas. With time, things are simplified. Of course, VA applicants need to obtain a COE.
Myth #3: The Federal Government regulates closing costs
Have you been thinking that the Federal Government offers interest rate and closing fees? Then you must have been on the wrong track all along. The lender is solely responsible for the mortgage rate and closing costs. The home seller or agent might push you for their choice of lender, but you should compare the quotes before selecting the one. The government only insures the mortgage and protects the lender when the borrower defaults. It depends on the borrowers to compare the quotes and get the best deal. Meanwhile, work on your credit scores for securing favorable terms.
Myth #4: VA loans are all about perfect credit scores
The lenders might set the requirements, but the guidelines are easy-to-pass. 500-credit is considered to be the benchmark for eligibility for many VA lenders. Excellent credit scores are not necessary for the programs. On the contrary, the loan product is flexible and forgiving. For having years overseas, bad credit is prevalent among veterans. Many of them do not get enough time for rebuilding the credit; therefore, a VA loan for low credit seems to be the perfect fit.
Since you have got all the myths debunked here, what are you waiting for? Find a lender who has thorough experience in VA loans!