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Are you a current National Guard member, active-duty service member, or discharged member of the National Guard? Do you have at least a credit score of 550? Then you might be eligible for a VA loan program. The mortgage is considered a non-conventional product and has flexible requirements. You can assume what a fantastic financing option this is for the eligible borrowers!
More than 20 million Americans have landed VA loan programs, and the great advantages are indeed lucrative. The minimum credit score for VA loan in Houston is 550, and you should prepare for the program as early as possible. So, you should remember these pieces of information and make an informed decision about the VA loans for low credit scores in Houston.
Remember the VA Loan Basics
The VA loans are insured by the Department of Veterans Affairs and available for military vets, qualified surviving spouses, and eligible active-duty members. In 2021, this is the most attractive loan product for military service members. VA loan is extensively popular for the high level of flexibility. Eligible borrowers can apply for a loan with a fixed-rate with a term of 30, 25, or 15 years. In case you have plans to move somewhere else and do not want to stay in a property for long, the VA allows a 5-year ARM. Moreover, the mortgage does not require a down payment. So, you can save a lot on upfront private mortgage insurance.
Borrowers also have a great opportunity to refinance under the VA Streamline program. It is possible to get a lower rate or change the term. If you land a lower rate, you can use it for further home improvements.
Property Requirements for VA Loans
VA mortgage products are available for manufactured homes and condos, but not all lenders allow these property types. Some of the VA lenders permit single-family and multi-unit residences. If you are looking for a condo, you can ask the lenders beforehand. However, the Department of Veterans Affairs does not allow vacation rentals or investment properties. Also, you have to make the property your primary residence within 60 days.
VA Loan Limits
The Department of Veterans does not impose any particular rule on how much a candidate can borrow. Nevertheless, you may face some restrictions on the VA’s guarantee. This is the amount the administration will pay when you default on the mortgage. As per the VA, the mortgage limit is $584,250 in most of the areas. The high-cost areas have a higher limit, and you might consider a VA jumbo loan. This product also does not have a down payment and can provide a much lower rate than the basic jumbo loans in Houston.
Do you understand how you should prepare for the VA loan now? Many borrowers are still unaware of the loan program, and they are deprived of the enticing benefits. So, do your research and find the ideal VA lender for your application. Work on your FICO score and improve your chances to get a lower loan rate.