Question
Are VA loans easier to acquire than traditional loans?
My credit is on the mend, after a disabling illness nearly ruined me. I know I probably wouldn't still qualify for a typical loan, but are VA loans easier to get? I am a wartime vet of course, but is the criteria any different? Thanks everyone.
6 months ago - 4 answers
Best Answer
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VA Loans (per VA Guidelines) require that your middle credit score be at or above 620. Conventional loans require 680 to 700, depending on the lender. VA has slighlty more paperwork, but it's more paperwork on the lender's end, not yours. Both loans take roughly the same amount of time from start to finish, but the VA Loan is the only loan which gives you the opportunity to get into your new home with as little money out of pocket as possible (as little as zero down). No down payment is required, and you can ask the sellers to pay your closing costs so you don't have to. Conventional loans require at least 5% down and unless you put 20% down, you'll be required to pay mortgage insurance, which can add up. For VA Loans, there is no mortgage insurance, but there is the VA Funding Fee, which is 2.15% of the total loan amount for 1st time VA Loan users, and 3.3% for those who have used the VA Loan before. if you have a Service Connected Disability, your funding fee is $0. In my experience, if you're eligible for the VA Loan, use it over anything else unless you plan on putting 20% down. You earned the right to use the VA Loan. Why not take full advantage of it? If your middle credit score is below 620, your #1 and only option is to enter credit repair immediately. It's not the same as debt consolildation or credit counseling, both of which hurt your credit scores. Credit repair improves your credit scores and helps to quickly remove any delinquencies showing up on your credit report. I hope this helps. Good luck!
Source(s)
Mortgage Loan Officer www.benchmark-mtg.net www.justVAloans.com
6 months ago
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Other Answers
i dont know, but a quick google search will help you
by KungShoe- 6 months ago
Only in the sense that a lower down payment can work.
by jlf- 6 months ago
VA is more lenient with your credit then a conventional mortgage, however you cant have a score of say 595 and expect to get a mortgage. They take into consideration, your payment history for the past 2 years, how many years you have been at your job, DTI etc.
by Fort Sill Army Wife- 6 months ago