VA Loans: Will A Low Credit Score Hold You Back?
It’s common knowledge that when you apply for a loan, your credit history is amongst the first things that a lender will carefully evaluate before deciding if you meet the requirements that qualify you for that loan. However, not everyone is able to maintain a history of good credit which can negatively affect their credit scores. This is why there are programs that have been developed by the government to help those people apply for a loan who are unable to qualify for a private loan. VA loans for low credit scores is one of them.
Though VA loans for low credit scores is an option that is open to those who seem to be stuck with their loan process, it too has its own requirements. For one thing, the VA loan option is open to only to those who have served time in the military as well as for their spouse. Though insured by the Department of Veteran Affairs, VA lenders actually process the loan and thus, have their own criteria set that one must meet before they can be eligible.
Which brings us to this point: how can a person still be eligible for a VA loan if he/she has a low credit score? Though the VA loan program is amongst the few that does not always maintain a minimum credit score requirement, as we mentioned above, there is a set of requirements that are also factored in. The VA loan offers many benefits for the borrower, some of which we have listed down below.
· There is no down payment required
· No penalty fee for prepayment of the loan so you are able to pay off the loan earlier than planned
· Lower interest rates compared to other loans
· There is no monthly insurance premiums that you have to worry about paying each month
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 scores. Through 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.
