Could there be a better loan for those who have served our country so well in the armed services? Not in my opinion. Which is why I am often shocked when I hear someone say that they were told at their bank or credit union that the VA loan isn't a good loan; that borrowers and the properties they select have to meet all kinds of difficult criteria to qualify. I am dismayed when I hear that veterans are being given bad information about a loan that is geared to give the veteran a great interest rate and great terms, and the ability to refinance the loan if interest rates go down with an easy low document refinance.
Why is VA so much better for the veteran?
-100% financing
-no monthly mortgage insurance (the only loan left that has no mortgage insurance with less than 20% down payment)
-low fixed interest rate
This loan is literally the least expensive loan available to the veteran.
So how difficult is it to qualify for a VA loan? Here are the basics:
-The borrower must be currently in the military or a veteran of military service and have been honorably discharged or have served in the National Guard or Reserves
-The borrower's credit score must be 620 or above
-The borrower must be employed and or be able to qualify on disability payments
As for the property-typical HUD guidelines apply-good roof, mechanicals, no plumbing leaks, 100 amp service-all the criteria I have discussed in previous posts.
There are the normal underwriting criteria that is looked at-debt ratio, credit history etc. but it is no more difficult for the veteran to qualify for this loan than any other loan product.
So do a vet a favor-if any lender tells him or her that the VA loan isn't a good loan, tell that person to run don't walk to the nearest lender who offers VA-like Tippecanoe Mortgage!
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