VA home loans are designed to help those who have served the country. While most people are aware of the benefits that VA loans have versus conventional mortgage offers, there is also some misinformation. We’re here to break down and explain VA loans.
VA Loans Are Just for Veterans
While it’s true that veterans are the primary focus for most VA loan offers, there are many programs that take non-veterans in need into account as well. VA home loans are commonly extended to qualified surviving spouses, and the amount that they’re able to borrow will likely be dependent upon where they live. Additionally, active-duty military service members are also eligible to apply for these loans.
VA Loans Take A Long Time to Close
Similar to any loan, VA mortgage loan assistance may take an extended period of time; however, there’s a way to help reduce the time associated with closing. The secret lies in picking the right lender(s). For example, lenders that specialize in VA home loans are more likely to know how to evaluate these applicants more readily, which will help minimize any delays.
You Need to Pick a Realtor That Specializes in Veteran Affairs
Similar to picking the right lender for your needs, picking the right realtor is also crucial in the VA home loan and home buying process. However, the VA does not certify real estate agents, so there’s no guarantee they’ll have the answers to questions you may have regarding the right VA loan program to pick. To help moderate this, it’s important to seek out lenders that focus on VA-backed mortgages who may be able to offer more reliable advice about lending options and programs.
VA Mortgage Loans Don’t Demand Stellar Credit
One of the greatest aspects of VA loans is that they’re more accepting of varied credit circumstances; most lenders want applicants to have a FICO credit score of at least 620, which is about 40 points lower than minimums from conventional lenders.
If you’ve struggled with debt in the past and have filed for bankruptcy or have been foreclosed upon, the 1–2 year waiting period for VA loans is much more accommodating than the 4–7 year restrictions imposed by non-VA lenders.