Banks have continued to tighten their lending standards, but this has not lowered the demand for loans. Many banks usually have strict conditions and requirements that must be fulfilled before a person can a get a loan. This can sometimes be hard for some people because some conditions lock them out. One such group that has limited access to loans are active military members and veterans. These types of loans have helped millions of veterans and active military members to access mortgages.
The VA loan has remained one of the few mortgage options for borrowers who don’t have a down payment. Qualifying for these loans is much easier than other lenders. The Department of Veteran Affairs is not a direct lender. The loan provided by a private lender and the VA can guarantee part of the loan, as long as the borrower meets certain guidelines. The number of people getting the VA loans has continued to improve. One main advantage with the VA loans is that you don’t need to have a down payment to qualify. You also don’t need to pay for mortgage insurance, which translates to a lower monthly payments. Below are the five things you must ask a VA specialist.
VA Loan Eligibility
Members of the military, veterans, National Guard members and reservist are eligible to apply for the VA loan. Spouses of military members who died while on active duty or service connected disability can also apply. It is important to ask the VA loans specialist to help you know if you qualify for the loan. There are a couple of other things that are considered before you can get the VA loan. The VA specialist will help you know if you qualify for the loan.
Fees on VA Loans
You need to ask the VA specialist about all the fees on the loans. These fees usually depend on the amount of the down payment and the type of veteran applying for the loan. There are also some fees that are waived if you receive disability compensation. A VA loan specialist will help you know the fees you can expect when you apply for the loan.
VA usually has no minimum credit score, but lenders will have their requirements. Many lenders usually need a credit score of 640 or higher. There are some lenders that will accept a lower credit score but charge a higher interest rate. Make sure you ask more about the underwriting requirements and this information will help you know what to expect.
What happens if you stop making the payments?
One good thing about the VA loans is that you can get help from VA to negotiate on your behalf if you are experiencing difficulties paying the loan. Ask the specialist what options you will have if you are unable to make the payments. You should also ask the effects of delaying your mortgage.
The limit of the VA loan
The limit usually varies by county. Ensure you ask about the maximum and minimum amount that you can borrow. You should also ask more about the terms of the VA loan.