What Is A Veteran’s Loan?
Veteran’s loan, also known as VA loan, is a type of mortgage specifically created for veterans and active service members. The VA loan is known for 0% down payments, low-interest rates, and low credit score requirements. This product makes it easy for current and former military personnel to buy or refinance their homes.
Who Can Qualify For It?
Just like the name suggests, veterans can qualify for a VA loan. Current military personnel can also qualify if they have actively served for at least 90 (ninety) days during wartime or 181 (one hundred eighty-one) days during peacetime.
Do Family Members Qualify Too?
Spouses of veterans who are prisoners of war or missing in action, as well as spouses of deceased veterans who died in action or due to service-related injuries, can also qualify for a VA loan. However, other family members including children, parents, and siblings are not qualified.
Where Does The Money Come From?
The funds for VA loans are provided by lenders, such as banks and mortgage companies. It is guaranteed by the U.S Department of Veterans Affairs (VA).
Can I Still Apply For A VA Loan If I Have A Bad Credit Score?
Yes, you can! The Department of Veterans Affairs does not have a minimum credit score requirement. However, the lenders themselves do still use credit scores and other parameters when deciding whether or not to approve a VA loan.
But don’t worry! The bar to get approved for a VA loan is much lower than other types of loans. You can get approved for a VA loan with a credit score as low as 640 for home purchases and 550 for home refinancing.
How Much Can Veterans Qualify For?
The maximum loan amount is determined by the VA loan limit. Each US county has a different loan limit, and the standard limit is $548,250 in most counties. However, it can reach up to $822,375 in more expensive housing markets. The actual loan amount that’s received is determined by income and credit score.