Owning a Home May Help Veterans Re-Adjust to Civilian Life
After serving your nation as a participant of the armed forces, adjusting to life as a civilian could be harsh. This is particularly true for veterans with a bad credit rating. Veterans may want to purchase a home, but might feel it is beyond their reach. Veterans may not know there are lending institutions that want to provide unique VA home loan to veterans with bad credit ratings. A VA home loan is a viable alternative funding source for veterans with a bad credit rating.
History of the VA Home Loan
The U.S. Department of Veterans Affairs, known as the VA, was established prior to the this nations establishment of 1776. Back in 1663, the Pilgrims of Plymouth passed a law which ensured that any soldier wounded in a battle with the Pequot Indians would certainly be supported by the rest of the colony. When this nation was established in 1776, those perks proceeded and have consequently increased throughout the years in response to the many wars that U.S. armed service participants have taken part in.
The VA home loan program began after the end of World War II. The concept was to give a means for veterans and their households to buy real estate and realize the American Dream of owning a home. The VA basically guarantees the home loan and offers veterans assistance in finding loan providers. Furthermore, if a veteran were to fall behind on their home mortgage repayments, the VA would assist them and show them how to protect their credit rating in the future.
Applying for a VA Home Loan in Palm Beach County Florida
In order to apply for and obtain a VA home loan, you do not have to be a first time home buyer. However, there are other requirements a VA home loan applicant needs to meet.
- The applicant must have previously served or is currently serving in one of the U.S. armed forces, a certified National Guard Member or Reservist, or the surviving spouse of a veteran.
- The VA loan applicant must meet income and credit standards set by the VA.
- The applicant must use the home, purchased with the VA loan, as their primary residence.
The income and credit standards required by each lender may vary. Veterans with bad credit should be aware that while credit score is of little importance, having a secure source of adequate income is a determining factor for VA loan approval.
If a veteran cannot provide proof of an adequate, steady income, he or she will not qualify for a VA loan, regardless of their credit history.
Locating a VA Home Loan Provider.
Mortgages that are recruited by the VA are not supplied directly by the VA itself, however the VA does provide veterans with a list of private mortgage lenders who accept the VA’s standards and operate according to the VA’s rules. Each lender is allowed to assess a veteran’s credit history and has the right to decline a loan to any veteran that does not withstand minimum VA standards.
Nevertheless, it is very important to keep in mind that the assistance of the VA will certainly improve a veteran’s chances of obtaining a home mortgage because the VA extends a safeguard to lending institutions, guaranteeing 25% of the loan, should a veteran fall short on repaying their mortgage home loan.
While veterans do not have to have bad credit to qualify for VA loan, veterans with good or bad credit benefit from substantially lower interest rates and a down payment is not required.
Some of the VA’s home loan standards provided to mortgage lending institutions are:
The applicant must not have defaulted on any loan within 12 month prior to the date on the application.
The applicant must not have filed for bankruptcy within 24 months prior to the date on the application.
What to Do After You Get Pre-Qualified for a VA Home Loan
Once a veteran has been pre-qualified for a VA home loan, he or she knows their price range and can now begin house hunting. Contact Realtyfox.com Real Estate Agency in Palm Beach County Florida. Tell your agent what your needs are and your price range and your Realtyfox agent will help you find your dream home.