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Facts About VA Loans for Bad Credit Houston

August 20, 2019 by Andersonedward  

Not long ago, it was declared by the DVA (Department of Veterans Affairs) that it stood by its 21 million home loans. Established back in 1944, in appreciation for the military members of returning World War II veterans, the prominence of VA mortgage loans has accelerated during the previous decade.

Particularly in the previous years, more than a million VA loans for bad credit Houston have been covered. By means of VA home loans program, just 2% of all active mortgages were financed in 2004. However, that number has significantly gone to a higher point in recent time. As per the revelation of the surveys, around 1.5 million veterans looked after home loans in 2012, which had been verified with the VA loan program. In this case, 13% of all veterans have utilized this qualification. Because of an expected one-million active members in service being released within five years, it is anticipated that VA home loan utilization will keep on boosting.

VA loans for bad credit Houston has got several advantages, which is the reason, it is gaining popularity when it comes to looking for the financing alternatives. The program has got minimum interest rates, no certain restrictions regarding down payment, refinancing alternatives, and a number of cost savings options. Maybe a stand out amongst these is that there is no FICO score prerequisite at the time of applying for VA mortgage loans.

No specific score has been set by the VA. Bad credit score won't be the exclusive reason the applicant is disallowed for financing. For the most part, the program just evaluates the past year of the applicant’s history. Also, the program does not correspond interest rates with scores, which means a good score won't bring about a better rate. On the other hand, a bad credit score won't bring about a higher rate.

Though, contingent upon the sort of VA loan and purpose, every mortgage lender possibly will have their own FICO score requirement. There may be certain rules, however, can be acknowledged on a case by case basis. This will likewise differ by state and borrower's specific conditions with regards to VA loans for bad credit Houston.

Tolerant guaranteeing rules are principal in case of the potential borrowers. National Mortgage News revealed borrowers, in this case, have under $7,000 assets. Besides, eight out of ten applicants in this program would not be able to meet all requirements for regular financing.

1 out of 3 Veterans Don’t Know About VA Loans

August 9, 2019 by Andersonedward  

According to a recent Veteran Affairs survey, 1 out of 3 veterans are not familiar with VA loans and Guaranty program. Only available to US veterans, the Federal Loan offers many benefits including programs like VA Loans for bad credit in Houston, New York and California. It’s difficult to almost impossible for an individual having bad credit to avail another loan but for veterans the federal government has made it possible. What is bad credit?

It’s a description of a person or a company’s predicted inability to repay a debt on time and in full. Its evaluated on the basis of an individual or company’s past history of paying off debt and related personal finance factors. When you apply for home loans generally, the lender company would always check what’s your credit score. If you have bad credit then it might be difficult for you to avail the loan. Well this post will define VA loans for your assistance.

What are VA Loans?

VA loans are mortgage loans available through a program which is established by the United States Department of Veterans Affairs. It assists service members, veterans and eligible surviving spouses to become homeowners. The VA sets the qualifying standards while dictating the terms of the mortgages offered and guarantees a portion of loan. These loans are provided by private lenders which includes banks and mortgage companies.

Advantages

The VA Loan program is the most powerful home loan program in the market for many veterans, service members and military families. It’s a very flexible government backed loan program. The convenience of these loans can be seen by the fact that government is offering VA loans for bad credit in Houston and many other cities. It comes with significant benefits that open the doors of homeownership to veterans who might otherwise struggle to obtain financing. These loans require no down payment or private mortgage insurance. They feature competitive rates and terms that allow qualified borrowers to purchase a home with little to no money out of pocket.

No Down Payment is one of the significant benefits that VA loans program offer as saving money and building credit can be difficult for service members who are constantly on the move. Qualified borrowers can finance 100 percent of the home’s value without putting down a dime.

 

 

 

VA Loans Savings at Closing

Loan Amount

0% Down

5% Down

10% Down

20% Down

$150,000

$0

$7,500

$15,000

$30,000

$250,000

$0

$12,500

$25,000

$50,000

$350,000

$0

$17,500

$35,000

$70,000

$450,000

$0

$22,500

$45,000

$90,000

 

Other than not paying any down payment, the Veterans don’t need to have a Private Mortgage Insurance either.  Many conventional lenders require borrowers to pay private monthly mortgage insurance unless they’re able to put down at least 20%, which is a tough task for many veterans. Private Mortgage insurance (PMI) is an insurance that protects lenders in case of a borrower defaulter.

The help provided by bad credit mortgage lenders Houston TX through government home loans

August 2, 2019 by Andersonedward  

 

A home is a necessity that many people need for themselves and their family. The people wishing to buy but facing financial troubles could always depend on the option of mortgage loans. But the hard part is qualifying for the mortgage loans offered in the homebuyer assistance programs. The first time homebuyers with moderate income and less than satisfactory credit score face the most difficulty as banks do not offer conventional loans on bad credit.

Getting a home loan with bad credit is not a simple task, but aspiring homebuyers can always depend on government backed loans which are known for affordability due to simple and lenient loan requirements when it comes to qualifying on bad credit, acceptance of high debt to income ratio, low down payment options, and low interest rates. The bad credit mortgage lenders Houston TX mostly provide government assisted loans which include the Federal Housing Administration (FHA) loans and Veteran Affairs (VA) loans.

Credit scores are an essential part of every mortgage and used by lenders as a measure to determine the ability of homebuyer to make regular mortgage payments or not. Good credit shows that a person has made his debt payments on time and can easily manage the new mortgage payments. A bad credit score means the person has failed to pay his debt for several months The FHA loans are the best home loans for first time homebuyers having moderate income and not only looking to qualify with bad credit but also wanting to pay the low down payment. The homebuyers with bad credit only need to make a 10% down payment and obtain the FHA loans.

 The bad credit mortgage lenders Houston TX offer the FHA and VA loans because these loans are guaranteed by the government which reduces the risk of the lender and allows them to provide the loans to the potential homebuyers who fulfill the loan guidelines.

The VA loans have most lenient loan terms and many advantages, but the loans are only offered to veterans, their families, and currently employed military personnel. The veterans do not have to pay any down payment or mortgage insurance to get the VA loans. The interest rates and closing rates are also less in VA loans.  

The bad credit mortgage lenders Houston TX would like the homebuyers to tell the reasons that caused the bad credit and also homebuyers to comply with certain compensating factors such as

·         Low debt to income ratio

·         Regular job with same employer for a significant period

·         High monthly income

·         A large number of cash reserves

·         No outstanding debt to pay; and

·         No late debt payments in the last 12 months

 

 

 

VA loans for bad credit Houston helping veterans with bad credit to buy a home

July 26, 2019 by Andersonedward  

The veterans having financial constraints but wishing to buy a house face the same difficulties as first time homebuyer when choosing for mortgage loans. The best option for veterans is none other than the famous VA loans, which have very simple loan requirements as compared to conventional home loans offered by banks and private lending companies.

The veterans who fail to qualify for conventional loans due to less than perfect credit scores can easily apply and obtain VA loans for bad credit Houston if they fulfill the other criteria needed by the VA lenders. The VA loans are quite old and started way back after the Second World War to help veterans returning from war to buy a home with affordable terms and conditions. The VA loans have changed over the years and included many new features to suit the veterans and currently serving military men and women.

The VA loans are known for their financial benefits, which include no down payment, no mortgage insurance, and low closing costs and interest rates. The credit scores are one of the most important factors that decide the acceptance of loan application as lenders use is to analyze the creditworthiness and financial ability of the borrower (veteran) to pay loan payments on time or not. The credit scores are determined by FICO (Fair Isaac Corporation) and range from 300 to 850. Any scores from 579 to 500 or below are known as bad credit and mean the veteran has missed debt payments for several months and would default on the new amount.

The VA department knows that many veterans serve in different locations and even overseas, which has made it difficult to maintain a good credit score. The VA department backs the VA loans, and the loans are given out by approved VA lenders. The risk of the VA lenders is reduced, and if the veterans default, then the loss is covered by the VA department. The VA department does not force any minimum credit score criteria and allows potential to obtain VA loans for bad credit Houston. There are some VA lenders that require veterans to have a certain credit score.

The compensating factors asked to be VA lenders to give VA loans for bad credit Houston to potential veterans are

·         Telling the reasons that caused the bad credit

·         Have no debt in collections

·         Working at the same employer for more than 5 years

·         Having a high monthly income

·         Have a low debt to income ratio; and

·         Show debt payment for the last 12 months

500 credit score mortgage lenders Houston giving government backed home loans

July 19, 2019 by Andersonedward  

Houses are quite expensive, and most homebuyers could not even dream of buying them without the help of mortgage loans. The affluent homebuyers can easily buy homes by either paying the purchase price in full or managing the monthly mortgage payments. The mortgage loans are available for both homebuyers wanting to change their existing homes and also newly married couple wanting to buy their first home.

The newly married couples are first time homebuyers who rely on government backed loans due to moderate income and financial constraints. The homebuyers struggling with bad credit scores and still wishing to buy a home must consult 500 credit score mortgage lenders Houston. Credit scores are the most important factor that decides the approval of loans. The lenders use credit scores to judge the creditworthiness and ability of the homebuyer to repay the loan on time or not. The credit scores are determined by FICO (Fair Isaac Corporation) and range from 300 to 850. The scores above 670 are considered to be good and acceptable while scores below 600 come under low credit score. The credit score from 579-500 is considered bad credit and shows a person has missed debt payments for several months.

The 500 credit score mortgage lenders Houston offer the government backed loans such as Federal Housing Administration (FHA) loans and Veteran Affairs (VA) loans which are known for simple and easy loan requirements. The FHA is regarded as best home loans for first time homebuyers with poor or bad credit as they mostly fail to get conventional loans. The homebuyers with bad credit score (579-500) only have to pay a 10% down payment to obtain the FHA loans. The interest rates of FHA loans are also less as compared to other mortgage loans

The VA loans are ideal for veterans, their spouses, and currently employed servicemen. The VA loans do not even require any credit score, no down payment, and no mortgage insurance. The homebuyers can choose either 15 year or 30 year home loans according to their income and expenses. The 500 credit score mortgage lenders Houston offer the FHA and VA loans because these loans are insured by the government, which reduces the risk of the lenders if the homebuyer default on the loan amount. The homebuyers, however, have to fulfill certain additional requirements which are

Ø  Tell the reasons that resulted in bad credit score

Ø  A regular job and a high monthly income

Ø  Have a low debt to income ratio

Ø  Have no outstanding debt; and

Ø  No late debt payments for the last 12 months.

 

 

 

The VA Loan Qualification Criteria Used By VA Lenders For Low Credit Scores Houston

July 17, 2019 by Andersonedward  

The Veteran Affairs or more famously known as VA loans are the most sought after home loans in the city of Houston. The VA loans are backed by the VA department and only offered to war veterans, their families, and currently employed military members.

The veterans wishing to own a Texas home after retirement have different mortgage loans which come under conventional loans offered by banks and government backed loans such as Federal Housing Administration (FHA) loans and Veteran Affairs (VA) loans given by approved mortgage lenders. The main reason why veterans want to obtain VA loans is due to low credit score and moderate income, which makes it difficult for them to get the home loans offered by banks. The VA lenders for low credit scores Houston provide equal opportunity to potential veterans and allow them to become homeowners regardless of their financial position.

The VA department knows that many veterans have served abroad due to which they have been unable to maintain a good credit score. The main factor which mortgage lenders ask from homebuyer is credit score as it gives them a clear picture of whether the homebuyer will pay the loan on time or default on loan. The credit scores are categorized by FICO (Fair Isaac Corporation) and range from 300 to 850. The VA lenders for low credit scores Houston offer the VA loans because the loans are guaranteed by the VA department and any financial loss is covered if the veterans default on the loan amount. The veterans wish to obtain the VA loans because not only they get qualified even with a low credit score, but they do not have to pay any down payment or mortgage insurance premium. The interest rates and closing costs of VA loans are also low as compared to loans offered by banks.

The VA department does not have any minimum credit criteria, but there are some VA lenders for low credit scores Houston that provide the VA loans only after the veterans comply with certain compensating factors which are

Ø  Having stable employment with the same employer for more than 5 years

Ø  Have a high monthly income

Ø  Do not have any debt to pay

Ø  Have no debt in collections

Ø  Maintain a low debt to income ratio; and

Ø  Show debt payments for the last 12 months

The ease of buying a home for veterans through VA lenders for low credit scores Houston

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

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.