4 Myths About VA Home Loans You Should Stop Believing
There are over 1.5 million Veterans in Texas alone, and the median income for veterans in this state is $40, 266. The VA Home Loan has helped over 22 million veterans become homeowners, yet there are a few myths that cloud the benefits of this loan program. Here are four myths that you should simply stop believing!
1. You need to have amazing credit
No way! VA loans are supposed to help those who have served our country, which means that there are more flexible credit requirements when it comes to this loan program. Generally, most lenders will look for a FICO score of 620 or higher, which falls into the “fair” credit level. Fair credit falls just below ?good credit? which is the range of 670 to 739, and two below the ?very good? credit range, which is a FICO score of 740 to 799. So you don?t have to have amazing credit to apply and successfully get a VA home loan. If you were hesitant about applying before because you thought you wouldn?t qualify due to a lower credit score, you should apply today.
2. They are not for surviving spouses
We?re going to break down this myth right now! Those who are eligible for VA home loans include veterans, active duty, and certain surviving spouses. That doesn?t mean every surviving spouse will be eligible, but those who are qualified can borrow as much as $417,000 with no money down, and be exempt from having to pay the VA funding fee.
3. It takes ages for a VA home loan to close
Not necessarily! Actually, if a lender specializes in VA home loans, you might be able to get your hands on a loan in 30 days or less. Lenders who are part of these programs have more flexibility in deciding whether or not you pose a high credit risk or not, and oftentimes even if your credit isn?t the greatest, you can get a loan pretty quickly. Everyone has their personal circumstances as VA home loan programs take that into consideration. With this in mind, lenders are more likely to overlook certain situations and close loans quickly.
4. These are very risky loans
Contrary to popular belief, these loans are the safest available since the housing crash, which is incredible. Many people think that because there is $0 down, there might be a greater increase of it being a risky loan, but actually, VA home loans have the lowest foreclosure rate of any kind of mortgage. In fact, it has been this way for the past few years which shows a very positive and promising trend.
Still wondering about VA home loan requirements? It doesn?t hurt to try and apply. You are most likely worrying about not getting approved, for no reason! We often let fear hold us back from getting what we really want, and if you are looking to buy or refinance your home and need help, VA home loan programs are here to help you.