Get Your Credit in Shape Before Applying For a VA Home Loan in Plano TX

VA Home Loan Plano TX

VA Home Loan Plano TXVA loans are guaranteed but, when applying for a VA home loan in Plano TX, you should be aware that poor credit can stand in the way and take the “guaranteed” out of the guaranteed loan. The Veteran’s Administration itself says that there are no credit score requirements for a VA loan but, as Military.com points out, lenders only want to take on borrowers who pay on time. If your credit in the last 12 months isn’t that great, you could be turned down for a VA home loan. The lender does have the freedom to review the complete loan package when making the decision to approve or deny. However, that opens the door for other factors to influence whether or not you get your home loan.

For example, you may be aware that having other debt when applying for a VA home loan in Plano TX won’t necessarily affect the outcome. Still, the lender and the VA will want to know that you have the resources to repay your home loan while still paying off other debt. That’s why you’ll have to list compensating factors if the debt ratio including your VA loan is over 41 percent. Acceptable factors might include low balances on your other debts, meaning that they will be paid off within a few months or under a year, or a letter from your employer guaranteeing a salary increase within a short amount of time. Anything that improves your immediate credit situation will count toward balancing what might seem like a credit risk at first glance.

The best way to ensure that your VA loan will be guaranteed is to address credit issues before you even apply. Bring your accounts current and keep them current so you can show at least a solid 12-month history. Pay off smaller debts before applying so that they don’t even appear on the underwriter’s radar. Don’t incur any new debt right before applying for a VA loan, and don’t apply for other types of credit even if you don’t intend on using them. Every time you apply for credit, it affects your credit report.

If you want to apply for a VA home loan in Plano TX but are unsure of the credit issues, call Summit Funding at (972) 864-3530. Joy Ziminskas and her experienced team know all the ins and outs of VA home loans and can answer any questions you have.

VA Home Loan Plano TX
Summit Funding
5700 Granite Parkway, Suite 410
Plano, Texas 75024
972.864.3530

References:

http://www.benefits.va.gov/BENEFITS/factsheets/homeloans/VA_Guaranteed_Home_Loans.pdf

http://www.military.com/money/va-loans/bad-credit-in-2012-fix-it-for-va-loan-in-the-new-year.html

Photo Credit:  ©Depositphotos.com/ gustavofrazao

VA Home Loan Near Plano TX: What You Need To Know About VA Home Loans

VA Home Loan Plano TX

VA Home Loan Plano TXIf you are now or have ever been a member of the United States Armed Forces and you live in North Texas, you may be eligible for a VA home loan near Plano TX.  During World War II, Congress passed the Servicemen’s Readjustment Act, which included guaranteed home, farm and business loans to eligible veterans.  Over the years, the Act has been amended several times; but the one thing that hasn’t changed is that VA homes loans are still an affordable way for service members to own a home.

▸ What is a VA home loan?  A VA home loan near Plano TX is a way for service members, veterans and certain surviving spouses to become homeowners.  The VA offers home loan guaranty benefits and other housing-related programs that can help you buy, build, repair, keep or adapt a home that you are going to occupy.  The loans themselves are provided by private lenders like mortgage companies and banks but a portion of each loan is guaranteed by the VA, which means that lenders will be more likely to give you favorable terms.

▸ What are the advantages of a VA home loan?  Because the VA guarantees a portion of each loan, lenders can offer terms like:

▪  No down payment (as long as the sale price does not exceed the appraised value)

▪  No private mortgage insurance required

▪  Limited closing costs

▪  No penalty for early pay-off

▪  Assistance from the VA if you have difficulty paying your mortgage

In addition, you don’t have to be a first-time homebuyer.  In fact, you can use your VA home loan near Plano TX more than once, which means you can use your loan on a second or third home, provided it’s occupied by you as your primary residence.

▸ Who is eligible for a VA home loan?  Current and former service members and some surviving spouses are eligible for VA home loans. The length of your service, service commitment or duty status can determine eligibility for specific loan types.  It’s best to contact the VA to find out for sure if you are eligible.  Once you do, you must obtain a Certificate of Eligibility or COE to prove to your lender that you are eligible for a VA loan.

▸ How do you apply for a VA home loan?  Once you’ve determined your eligibility, you can take your COE to the lender of your choice.  Once you’ve found a lender, you can start their application process to determine your interest rate and what your premiums will be.  Even though your home loan will be partially guaranteed by the VA, you must still meet certain income requirements and have suitable credit.

To find out more about how you can qualify for a VA home loan near Plano TX, call us at Summit Funding at (972) 864-3530.  You can also visit us online at www.jziminskas.summitfunding.org to learn more.

VA Home Loan Plano TX
Summit Funding
5700 Granite Parkway, Suite 410
Plano, Texas 75024
972.864.3530

Photo Credit:  ©Depositphotos.com/ TpaBMa2