LeapZipBlog: Andersonedward

Andersonedward's blog

6 blogs

The VA loan options provided by VA lenders for low credit scores Houston

June 24, 2019 by Andersonedward  

The war veterans who have served the country want a house to settle in once they retire. Many of the war veterans look for affordable loan option from the Department of Housing, which can help them to buy a home in the wonderful city of Houston. The best home loans for veterans are none other than Veteran Affairs or more famously known as VA loans.

The VA loans were launched way back in 1944 and now have become the most sought after mortgage loans as it offers simple loan terms and many financial benefits. The VA loans are backed by the VA department and given by approved VA lenders. The one thing that makes VA loans the best option for buying a house is its acceptance of veterans having low credit scores. The VA lenders for low credit scores Houston make it possible for veterans to buy a Texas home even with a poor or bad credit score. Most of the veterans fail to qualify for conventional loans offered by banks as low credit means a veteran has not paid his debt on time and would surely default if a new loan is given to him.

The VA department knows that many veterans serve at multiple places within the country and abroad, so they could not find the time to accumulate significant wealth or maintain a proper credit score. The VA lenders for low credit scores Houston offer VA loans to potential veterans who meet the set guidelines from the VA department. The VA lenders provide the loans because the mortgage loans are guaranteed by the VA department, which covers the financial loss if the veterans default on the loan amount.

The VA department does not even impose any minimum credit score criteria to allow every veteran a chance to obtain a VA loan to fulfil their wish of buying a home. The benefits provided by VA lenders for low credit scores Houston to veterans are

·         Allow getting the VA loans even with poor or bad credit score

·         No down payment

·         No mortgage insurance premium

·         Low interest rates

·         Low closing costs; and

·         Option to obtain jumbo loans to buy big and lavish home

The VA lenders, however, only provide the VA loans to veterans who have stable employment with high salary, no outstanding debt to pay and having a low debt to income ratio.

The reasons why many first time homebuyers require government loans for low credit scores

June 20, 2019 by Andersonedward  

Home is a necessity that nearly every person needs especially when they marry and want to settle down to start a family. As a first time homebuyer, many people have to face certain problems in trying to buy a home in the city of Houston as purchasing a house require a significant amount of money. The first time homebuyers are not financially stable and just beginning their professional careers, so require all the help and assistance they can get in trying to fulfill their wish of buying a Texas home.

The Department of Housing in the city of Houston provide all the assistance and support needed by homebuyers wither to buy a home for the first time or change their existing home. The one thing that is crucial for most homebuyers is credit scores as the lenders want to know whether a person will timely repay the loan amount or not. The government loans for low credit scores are special loans that allow homebuyers to obtain the loan even with a poor and bad credit score. The first time homebuyers have moderate income and are mostly rejected by banks as they cannot afford to pay a big down payment or high interest rates.

The government loans for low credit scores include the Federal Housing Administration (FHA) loans, Veteran Affairs (VA) loans, and United States Department of Agriculture (USDA) loans. The FHA loans are best for first-time homebuyers having low credit scores. The FHA loans are guaranteed by the government, which reduces the risk of FHA lenders and allow them to assist the potential homebuyers. The FHA lenders ask

Ø  Homebuyers to pay 3.5% down payment if they have a poor credit score of 580 or below

Ø  Homebuyers to pay 10% down payment if they have a bad credit score 579-500

One of the best government loans for low credit are VA loans, but these loans are only given to war veterans, their families, and currently serving military men and women. The VA loans require no down payment, no mortgage insurance, and the closing costs and interest rates are also low as compared to other home loans.

The USDA loans also do not have any minimum credit score requirement and allow homebuyers to buy a home in rural areas with no down payment.

The government loans offered by best mortgage lenders in Houston Texas

June 13, 2019 by Andersonedward  

A home is a place of love, care, and belonging that nearly every person needs. Many of the people need to buy the house for the first time, such as the newlywed couples who want to settle down and start a family. House is quite expensive in the city of Houston but can be affordable with the help of home loans offered by the Department of Housing.

The first time homebuyers have to consider several factors before knowing which mortgage loans to choose. The homebuyers must know their credit score, debt to income, and monthly income to afford the down payment and monthly mortgage repayment along with interest rates. The best mortgage lenders in Houston Texas, offer the best and affordable terms when it comes to home loans. The mortgage lenders first offer conventional loans if the homebuyers have a good credit score and have a high income to manage the large down payment and interest rate.

The credit scores are quite crucial as they clearly show the ability of the homebuyer to pay the mortgage payments on time or not. The best mortgage lenders in Houston Texas usually offer the government-backed loans to first-time homebuyers which include the Federal Housing Administration (FHA) loans, Veteran Affairs (VA) loans, and United States Department of Agriculture (USDA) loans.

The FHA loans are known for allowing homebuyers with poor and even bad credit score to buy a home and only pay a minimal amount as a down payment. The FHA loans are best for both homebuyers with either a poor or bad credit score. The homebuyer with poor credit score 580 or below will make 3.5% down payment while a homebuyer with bad credit score 500-579 will have to make 10% down payment.

The war veterans, their surviving spouses, and active military members are entitled to VA loans, which are backed by the VA department and does not have any minimum credit score requirement. The VA loans offer the most financial benefits as there is no down payment, no mortgage insurance, and less closing costs and interest rates. The USDA loans are also no down payment loans that encourage homebuyers to buy a home in rural areas at a low mortgage rate.

The best mortgage lenders in Houston Texas offer the government-backed loans because the FHA, VA, and USDA are all guaranteed by the government which means the risk of the lenders is reduced, and the government will cover any losses if the homebuyer defaults on the loan amount.

The need of contacting FHA lenders for bad credit in Houston by first-time homebuyers

May 27, 2019 by Andersonedward  

Buying a house is one of the most stressful time in a person’s life; not only he has to search for a suitable home but also ensures that his financial position is in order. It can be quite challenging for first-time homebuyers with moderate income to buy a home as they have to rely on homebuyer assistance programs. The department of housing offers a wide range of mortgage solutions to homebuyers who want to buy a home but do not have the financial resources.

One of the best loans for first-time homebuyers is the government-backed loan called the Federal Housing Administration (FHA) loans. One of the factors which make many homebuyers to get FHA loans is less than perfect credit score requirement. The FHA lenders for bad credit in Houston provide mortgage loans to first-time homebuyers who fail to qualify for conventional home loans offered by banks and private lending companies. The credit scores are determined by FICO (Fair Isaac Corporation) and range from 350 to 800, any score below 550 is considered bad and shows a person has missed debt payments for several months. Banks do not offer loans to homebuyers with bad credit as there is a greater risk of them defaulting on the loan amount.

The FHA loans are considered best by many first time home buyers due to their lenient terms regarding credit score requirement. The FHA lenders for bad credit in Houston ask the homebuyers with a bad credit score of 500-579 to make only 10% down payment. The down payment and interest rates of FHA are quite less as compared to conventional home loans. The FHA loans are guaranteed by the government, which removes the risk of the FHA lenders and allows them to provide mortgage loans to potential first-time homebuyers.

The FHA lenders may first ask the homebuyers with bad credit to improve their score, which can improve their chance of getting mortgage loans with favorable terms. The FHA lenders for bad credit in Houston provide the loans to first-time homebuyers only if they comply with certain factors such as

·         Showing real reason which caused the bad credit

·         Having stable employment

·         Having a high monthly income

·         No outstanding debt and showing debt payments for the last 12 months; and

·         Having a low debt to income ratio

The real reason why many veterans want VA loans for bad credit Houston

May 17, 2019 by Andersonedward  

Home is essential for every person even for war veterans who have served the country with bravery and dignity. But nowadays homes are very expensive and not within easy reach for veterans who already have moderate income and less than perfect credit score. The answer to the troubles faced by veterans is the Veteran Affairs (VA) loans which are known to be best home loans considering its lenient requirements and financial benefits.

Credit scores are a decisive factor which plays a part in acceptance or rejection of mortgage loans. The credit scores are classified by FICO (Fair Isaac Corporation) and range from 350 to 800. Any score below 550 is considered bad credit and means a person has missed his debt payments for several months. The VA loans for bad credit Houston are easy to qualify for veterans who have

·         Stable and high monthly income

·         No outstanding debt to pay

·         No debt collections

The VA loans were solely introduced in 1944 to honor the war veterans returning from war with easy and simple mortgage loans to buy a home. The VA department knew that most of the veterans and even currently employed military men and women serve abroad so could not maintain a good credit score. The VA department does not even have any minimum credit score requirement and guarantees the loans which allow the VA lenders to offer VA loans for bad credit Houston to potential veterans hoping to buy a Texas home.

The VA loans have become the most sought after home loans due to their simple requirement and much significant financial relief. Veterans with bad credit score do not qualify for conventional loans as banks, and private lenders consider it a risk as the veteran will likely default on the new loan amount. The VA lenders give the VA loans for bad credit Houston after analyzing the complete financial profile of the veteran which includes, the veteran having

Ø  Satisfactory debt payment

Ø  Showing the real reason that caused the bad credit score

Ø  A stable income which covers not only the monthly mortgage payment but household expenses also

Ø  Having a continuous employment history

Ø  No late debt payments; and

Ø  Maintaining a low debt to income ratio

The benefits of government loans for low credit scores for first-time homebuyers

May 10, 2019 by Andersonedward  

Buying a house in the modern city of Houston can be a challenging and daunting task particularly for first-time homebuyers who do not have required financial resources or good credit scores to obtain home loans. The department of housing offers many mortgage terms with simple criteria so that every potential home buyer gets a chance to buy a home.

Credit scores are an important aspect of nearly every home loan, and it is used by a lender to analyze the ability of the borrower to make timely mortgage payments or not. The credit scores are categorized from 350 to 800 by FICO (Fair Isaac Corporation), and any score below 600 is considered a low credit score. The banks and private lending companies do not provide loans to a homebuyer who has a low credit score as there is increased risk of the person defaulting on the new loan. The first time homebuyers who have moderate income and less than perfect credit score can easily obtain government loans for low credit scores and buy a Texas home.

The government-backed loans consist of Federal Housing Administration (FHA) loans, Veteran Affairs (VA) loans, and United States Department of Agriculture (USDA) loans. The best thing about government loans is their lenient qualification criteria which give every homebuyer a chance to become homeowners. The government loans are guaranteed by the government which reduces the financial risk of the lender in times when homebuyer defaults on the mortgage.

The FHA loans are considered the most suitable government loans for low credit scores for first-time homebuyers as they only have to pay a low down payment as compared to conventional home loans. The FHA loans require a person having a poor credit score 580 or below to make a 3.5% down payment while a person having bad credit from 550-579 must make a 10% down payment.

The VA loans are the best government loans for low credit scores as the VA department does not even have any minimum criteria for credit score as they know it is difficult for war veterans to manage a good credit score. The VA loans are only given to war veterans, their families and currently serving military personnel. The veterans get the benefits of paying no down payment or mortgage insurance. The closing costs and interest rates are also low. The first time homebuyers can also obtain USDA loans if they wish to buy a home in the rural areas of the state.