I need some help understanding VA Home loans?

[KB]

My husband and I both have blemishes on our credit report we are currently working on fixing (medical bills for our disabled daughter mostly) We are both around 600 in our credit score, I know not great. My husband and I can qualify for a VA home loan.



Question: I keep reading that the VA has no minimum credit score requirements? But the banks do? I am really confused here, would I go by what the banks say or should I go by what the VA says? If anyone can dumb down basically everything known about VA home loans that would be great!



And we plan on buying in a year when our credit is better, we are hoping it will be at least 620 or more by then.....

We can come up with about $5,000 for closing costs if necessary.

So if they only gurantee the loan does that make banks like the loans or dislike them more?

[colKurtz349]

the VA merely "guarantees" the loan which is actually originated by a private sector lender. They should be able to direct you to the VA guidelines for min. credit scores, so if the lender is telling you your score score qualifies, you're in.

VA can offer you a No money down option. You will need some cash for your upfront costs and the Earnest Money Deposit though. Appraisal fee, Home Inspection fee. I think those can be reimbursed through escrow? if memory serves.

[Jhon979]

Individuals who want to make the most out of home loans are curious about their VA home loan rates. The mortgage center has experts that are trained specifically to maximize the VA home loan interest rates that are available for the individual. The benefits he or she receives while ensuring the process goes so smoothly that it is hard to believe that they have made the most out of your loan.

http://www.worldbestloans.com/homeloans.htm

In order for you to know your VA Home Loan, you will be asked to answer a couple of questions. This is to determine your qualification level, as well as whether you are eligible to apply for a home loan or not. If you are applying for VA Home Loan rates, you can start the no obligation process. You can peruse through the questions and see whether you are comfortable giving the information that they are asking from you or not.

[dogma735]

KB -
Go ahead and talk to a lender now. They can answer all your questions and show you the right steps to take to get your credit where it needs to be in order to qualify. Lenders must look at much much more in your total picture than just credit scores, so they will need to know your income, employment history, debt-to-income, etc. A loan officer who can see your whole picture can give you much better advice and can explain all the requirements of the program.

[Jokey]

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[FaithWalker]

Hello, I am Faith Walker,sometime ago I was such much in need of loan I approach my bank but could get the loan from them because of my credit score so I decide to apply on line via yahoo answer I got an answer from someone who refer me to fred roland loan firm the I gave them a trier and I got the loan from them so if you need loan I will advise you to contact the via email now here is the email fredrolandloanfirm@yahoo.com

[Michael056]

The minimum score required to purchase a home using a VA Loan is 620. If you are doing a VA Streamline refinance (IRRRL), then your scores don't really matter, as long as you are current on your existing VA Loan. However, just because you have a mid FICO score of 620 doesn't necessarily qualify you for the loan as there are other variables involved. For example, your residual income, past credit history (why your scores are currently low), current income, how much house you are trying to buy, etc. Keep in mind that if both of you will be on the loan, they'll take the lowest mid FICO score between the two of you.

As for the closing cost, your Realtor should negotiate for the seller to pay most of the cost, which should include the VA non-allowables - fees the VA won't allow the veteran to pay.

Since you will be financing 100% of the loan by using your VA benefits versus putting the standard 20% down, all the VA guaranty means is that the lender is protected against any loss if you fail to repay the loan.

If your scores are only 600, it shouldn't take you a year to bring it up to 620+. If you haven't already, talk with your local mortgage broker, explain that you want to purchase a house but don't know what your credit scores are. S/he'll run your report, usually at no cost, and will go over your credit history and scores with you. Who knows, all you may need to do is pay down a couple debts, call/write past creditors to remove any derogatory items, or remove any items that aren't yours. Ask the broker for tips on improving your scores.

You may wnat to check out http://www.homeloans.va.gov/index.htm and browse through the site. It'll answer the majority of your VA Loan questions.

Hope you get the house of your dreams...Good Luck!!!