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Are you a veteran in need of a permanent house? If you are going to give a nod, you can easily consider VA loans. This is a special mortgage available for the veterans, active-duty service members, eligible members of the National Guard, reservists, and surviving spouses of the members passed away in the line of duty. Additionally, the spouses of the members who suffer from a service-related disability also can apply for VA home loans. However, many people do not apply for loan enthusiastically. They usually consider the restrictions or strict guidelines as negative factors. If the veteran can look beyond the hiccups, the road will be smooth.
The low-cost mortgage does not have a high-interest rate and a high credit score requirement. Moreover, the administration does not set a limit for VA home loan credit score 550 in Houston, TX. You can afford more if there is any need for it. It is easy to use the loan for buying, building, or refinancing a primary residence. Even if you are dealing with foreclosure or bankruptcy, the mortgage provides different options. However, the common hurdles are manageable only when you are aware of the issues. Here are some of them mentioned, go through the predictable hiccups to prepare well.
Buying a Manufactured Home with VA Loan
When you are ready to purchase a manufactured home with VA benefits, the path is never going to be easy. The lenders do not prefer mobile homes and the borrowers may not utilize the VA benefits here. In case, you are going to apply for a mobile home, you should keep different types of financing in mind. It is possible to purchase a mobile home only if you are in touch with the right lender. Before submitting the loan application, you must run deep research on the lender.
Residual Income Requirement is Checked
Going through the years of success rate, the loan is considered to be a safe option. Even though there is no down payment required, the mortgage remains a favorable option. Nevertheless, residual income requirement exists for the loan. This standard has been set to make sure that the borrowers invest in only affordable houses. The administration is trying to ensure that the military buyer has adequate money for the recurring bills of gas, food, and other necessities. The residual income is solely dependent on the family size and geographical area. Generally, the professional lender calculates the residual income before the loan pre-approval process.
Making it a Primary Residence
The loan requires you to choose the home as a primary residence and live in it. Therefore, you cannot spend the loan money on buying a vacation home. However, this does not directly refer to the fact that anyone can rent out the property ever. There is no exact limitation on renting out a house after occupying it. Even many buyers rent the old primary residence after receiving a Permanent Change of Station.
Even though the above-mentioned situations feel like hurdles, there are solutions available. So, get in touch with the professional lender now!