July 17, 2019 by Andersonedward
The war veterans hoping to buy a home in the beautiful city of Houston can get their wish easily fulfilled by the help of Veteran Affairs (VA) loans. The veterans have two main categories of home loan to buy a Texas home, which are conventional loan offered by banks and private lenders and government assisted loans provided by approved mortgage lenders.
The VA loans are the best government backed loans as it allows veteran with low credit score to easily obtain loans and become a homeowner. The VA lenders for low credit scores Houston provide the VA loans because the VA department wants to give equal opportunity to every potential veteran regardless of their credit scores or monthly income. The main purpose of the VA loans launched in the 1940s was to offer easy and affordable home loans to veteran where it is financially easy for them to repay the loan on time and have a house of their own.
The credit scores are the most important feature of every mortgage loan, and lenders use it to judge the ability of the borrower (veteran) to make scheduled mortgage payments on time or not. The credit scores are determined by FICO (Fair Isaac Corporation) and range from 300 to 850. The scores above 600 are good credit while anything below 600 is considered low credit. The veterans fail to get conventional loans as low credit means the veteran has been missing his debt payment and would likely default on the new loan given to him. The VA lenders for low credit scores Houston assist the potential veteran in every possible way and remove the hassles that most veterans have to face in terms of credit score, down payment, interest rates, and closing cost.
The VA department does not even have any minimum credit score because it knows that veteran serves in numerous places within the country and also overseas, which prevents them to maintain a stable income and credit score. But they are some VA lenders who require certain credit scores from the veterans wishing to obtain the VA homes that offer no down payment, no mortgage insurance, and low closing costs and interest rates.
The VA lenders for low credit scores Houston offer the VA loans only after the veterans satisfy the compensating factors which are
Ø Have no debt in collections
Ø Maintain a low debt to income ratio
Ø Have more than 5 years with current employer and high monthly salary; and
Ø No late debt payments for the last 12 months