For qualified veterans and military service members, using a VA loan is one of the best ways to purchase a house. These loans are easier to qualify for than conventional mortgages, giving you more flexibility to choose a home you love rather than being stuck with a house you’ll want to sell in a year or two. Unfortunately, there are a few myths surrounding credit scores and VA loan requirements that can make the application process more confusing. Here are the top myths, debunked, so you can make the best decision for your needs.
Your Credit Score Must Be High
When you apply for a conventional mortgage, you need to have a high credit score to qualify for the loan in the first place. If you’ve had a rough financial patch in the past, this can make qualifying for a mortgage almost impossible. The VA loan requirements for credit scores are much more flexible. If your score is low, you’ll likely still qualify for a VA loan, allowing you to buy the home of your dreams. That said, the higher your credit score is, the better your loan’s rates will be. It’s always a good idea to work on your credit before you apply whether you’re applying for a VA loan or a conventional mortgage.
Lenders Won’t Work With You Unless You’re Wealthy
Just because you don’t make a ton of money doesn’t mean you won’t be able to buy a house with a VA loan. As long as you’re able to make your loan payments on time every month, lenders will likely be willing to work with you. Remember, since the loans are backed by the VA, most lenders are willing to take a chance with borrowers that may not qualify for conventional mortgages because of low income levels.
Bad Credit Means You’ll Need a Down Payment
Traditional mortgages often require a 20 percent down payment before lenders are willing to give you the loan. This helps show lenders that you’re serious about the loan in the first place. The lower your credit score is, the higher your down payment needs to be if you want to qualify for the loan. VA loan requirements allow you to purchase your home without putting a single dollar down on the house.
Is a VA Loan Right for You?
The VA loan requirements are flexible and make it easy for you to get into the home of your dreams. If you’re looking for a low-interest loan to make your dreams of homeownership a reality, apply today.