The Truth About VA Home Loan Programs Revealed in Houston

The Truth About VA Home Loan Programs Revealed in Houston

Would you pass up a house loan that has no down payment and mortgage insurance? You might be thinking it is too real to exist, right? Surprisingly, such a mortgage option is a reality for the eligible veterans and active duty service members. Especially, those who have had a history of bankruptcy or past credit issues – VA home loans have a lot to offer. But the sad reality is every veteran does not know about the benefits.

This issue has given rise to numerous myths and misconceptions about the VA home loan bad credit in Houston. After all, 42% of military service members do not make use of the VA loan program. The rumors are about VA eligibility and benefits. Interestingly, most of the myths birthed from people who never used the VA loan, in the first place. The second-hand stories are the root of the evil, indeed. Myths swirling around the government-backed loan are not something new. As every veteran requires secure financing, the VA loan remains an amazing choice. When conventional mortgages do not allow borrowers with credit scores lower than 620, the VA loan is an ideal choice. Most importantly, the loan program is exclusively designed for eligible veterans. Let’s debunk the common myths below.

Myth #1: VA entitlement is a one-time thing

Your VA entitlement has value as long as you are alive. Additionally, surviving spouses are often eligible for it. You can definitely reuse the entitlement; however, it is usable at a time. If you purchase a property utilizing the entitlement, it takes the whole of it into account. You can again make use of it only if you see the house. The VA entitlement transfers into the new house. Yes, you can still lose the entitlement if the buyer takes over the mortgage. It is smart not to sell the home along with a VA assumption when the buyer is not an eligible veteran.

Myth #2: VA loans are more expensive than conventional programs

VA loan is the very opposite of expensive, and it is cheaper than any other loan program available in the market. First of all, VA home loans cater to bad credit. Your loan application successfully gets the nod if you have at least 550 credit scores. This is not possible for conventional mortgages as the minimum credit score benchmark is 620. Yes, there is a VA funding fee which can amount to 2.15% of the mortgage. If you are an eligible disabled veteran, the authority does not charge you with the fee. Nevertheless, look at the bright side! There is no down payment or the invisible pressure of making a large down payment. Additionally, you need not pay mortgage insurance and the interest rate is affordable. It is safe to say that the VA loan program is the best deal for veterans in this era.

As you have found a clearer picture of the VA home loans for bad credit, you can finally take the leap of faith. Find a VA-approved lender to run the process smoothly!

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