The year 2017 has seen quite a few surprising turns of events, and one of them is related to housing – or more specifically, housing loans. This year, VA loans for low credit scores have emerged to become the cheapest loan source for applicant. How so, you may ask? Two reasons:The year 2017 has seen quite a few surprising turns of events, and one of them is related to housing – or more specifically, housing loans. This year, VA loans for low credit scores have emerged to become the cheapest loan source for applicant. How so, you may ask? Two reasons:
• There is no need of a down payment with a VA loan for low credit score
• There is no need to pay for mortgage insurance
VA LOANS: Understanding what it’s all about
The Veterans Administration created this loan to cater to those US veterans who are unable to qualify for a more traditional loan. This loan was designed as a basis for the government to thank these veterans for their services rendered and as a way to show their appreciation.
But although the VA loan is designed by the department, they are not the ones who issue this loan. In fact, VA loans for low credit scores need to be approved and issued by qualified VA lenders. But the VA department does guarantee this loan in case the borrower defaults on the payments of these loans, making the lenders more open about reviewing those clients who have a history of bad credit.
But how do you know that you qualify for the VA loan? Well for that, we need to take a closer look at their eligibility requirements.
VA loan Eligibility
To qualify for a VA loan, one must be:
• Active duty Service
• Service persons on active duty who have served for at least 90 consecutive days of active service
• Midshipmen at the U.S. Naval Academy
• U.S. Public Health Service officers
• Members and Reservists of the National Guard
• Cadets of the U.S. Military, Air Force, or Coast Guard Academy
• World War II Merchant Seamen
• Atmospheric Administration & National Oceanic officers
