The U.S. Department of Veterans Affairs insures and regulates the VA loans. But have you noticed that the authority uses the word “veteran”? Therefore, you must have thought only veterans can apply for the mortgage program. Thankfully, the lucrative benefits and productive terms are for a wide range of borrowers. But why is the word “veteran” used? How can you find your way to the best VA loan?
The word “veteran” is usually utilized indicating any person with years of experience in any field. But the U.S. Military refers to it for a particular reason. If you have served a great period of your life for armed forces and were released under specific conditions, you are given the title of a veteran. Remember, members who have been dismissed for dishonorable deeds cannot be eligible borrowers. From here, you can understand how the VA loan is not only for veterans. So, who is eligible for the best VA loans for bad credit in Houston? If this question has been circling your mind for a long time, here are a few things to remember. Let’s take a look below.
Who are the qualifying members?
The most attractive benefit of the VA loan is a low credit score threshold. The VA does not set a credit eligibility requirement, but lenders usually offer the loan to borrowers with 550 credit scores. Besides being eligible for the FICO scores, you need to get hold of a Certificate of Eligibility. The eligibility depends on the service history and its related requirements. Following are the members, who can receive eligibility for the mortgage program,
- Surviving spouses of veterans
- Active-duty military service members
- S. citizens who served for armed forces during World War II
- Cadets in the United States Coast Guard Academy
- Cadets in the U.S. Air Force Academy
- Midshipmen in the U.S. Naval Academy
Also, the officers who serve Public Health Service and National Oceanic and Atmospheric Administration can be eligible for the VA loan program. Before declaring the eligibility, the length of service is one of the vital factors to check.
Are there any other requirements?
Receiving VA loan benefits are relatively easy only if your papers and financial conditions are on point. The work experience is not adequate; you need to carry a sufficient credit score and lower debt-to-income ratio. Even though the VA does not impose a credit score requirement, it suggests borrowers evaluate their credit history. The other requirement to remember is the property. You can use the VA fund for purchasing your primary residence.
So, the best VA loan for your low credit will be available for buying a condo, manufactured home, or multi-unit property. You can also refinance the mortgage and get funds for home improvements. Before everything, go through the interest rates and loan rates provided by the lender. It’s a smart move to compare the VA-approved lenders for the best results. So, start scouting and do your homework for the best VA loans in Houston!