VA Lender

If you are thinking about applying for VA loans for low credit scores, then there are a couple of things that you need to know. First of all, VA loans for low credit scores are not your typical loan – in fact this loan option is open for those who are veterans or have/are serving time on duty in the US military. And the other thing that you should be aware of is that this particular loan is not issued by the Department of Veteran Affairs but through VA approved lenders. If you are thinking about applying for VA loans for low credit scores, then there are a couple of things that you need to know. First of all, VA loans for low credit scores are not your typical loan – in fact this loan option is open for those who are veterans or have/are serving time on duty in the US military. And the other thing that you should be aware of is that this particular loan is not issued by the Department of Veteran Affairs but through VA approved lenders.

These lenders have their own guidelines through which they determine whether or not an applicant is qualified for the loan or not. While that might be an extensive list, let us make it easier for you by providing you with a few key factors that they look in to that can determine your loan approval. So without further ado, let’s take a closer look at what these four keys are to getting that VA loan approved.

VA Entitlement

In order for a VA lender to consider you for the loan, you must first be eligible for a VA home loan. Confused? This basically implies that there are a few service requirements that need to be met along with having enough entitlement (amount that the VA will guarantee for you) before a VA lender will consider you.

Property Eligibility

Another key factor that these lenders take into consideration before loan approval is the type of property that you have selected. Typically the VA approves only those properties that are owner occupied and must be a single family house, a VA approved condo, townhouse or a multi-family house. Apart from the mentioned properties, the VA loan will not be approved.

Owner Occupancy

Another factor that lenders need to check is whether or not the applicant plans to occupy the home or not. To do that, the VA borrower must verify to the lender that they will be occupying the home for a reasonable period of time, which basically amounts to 60 days after closing while those borrowers who are away from home and deployed can receive an extension for up to a total of 12 months.

Income And Credit

In order to qualify for the VA loan, the borrower (as well as the co-borrower) must be able to prove that they have a steady source of income along with credit that meets the lender  requirements.