3 Perfect Reasons to Get a VA Loan in Houston: Benefits Explained
For those military service members who have bad credit, a VA loan is the ideal option. The mortgage appeared in the market with the aim of helping millions of active-duty service members and veterans. And the help can solve a huge issue – achieving the dream of homeownership. What could be more important than this? The loan program was launched during the Great Recession. The competitive rates and flexible lending requirements of the VA loan program boosted the number of VA borrowers.
In the market, VA loans are considered to be more useful than ever. The lending requirements are becoming crucial as the days pass by. For conventional home financing, military service members face a difficult situation. In this context, the VA home loan bad credit in Houston showers advantage. The VA financing is a little bit different from the traditional option. Unfortunately, many potential VA borrowers are yet to notice the benefits. And you can only become a qualified borrower when you have 360-degree information on the mortgage.
So, the article deals with the top benefits of a VA home loan in Houston. Let’s take a look below.
Lenient DTI Ratios
VA-approved lenders allow 41% of the gross monthly income. Traditional financing does not allow such a high major debt-to-income ratio. Now, the VA loan program offers more flexibility on this front. If you are in luck, you can find a lender providing more than 55% of the credit score. You need to search a lot and find the ideal lender. The VA lending requirements are designed to increase purchasing power.
Flexible Funding Fee
VA loans demand a funding fee, and it is an upfront fee. Based on the loan amount, down payment size, and type of eligibility, the funding fee is decided. You need not pay the funding fee in cash. The Department of Veterans Affairs permits the funding fee to be financed with the mortgage. At closing, nothing remains due. Remember, you might not have to pay the fee. The funding fee is waived for veterans with a permanent disability. Also, unmarried surviving spouses of veterans are exempted from paying the fee.
Not a One-Time Perk
VA home loan programs in Houston are a lifetime benefit. If you once have passed the eligibility, you can apply for the VA loan throughout your life. Furthermore, borrowers do not have to pay back the loan before applying for another. So, you can expect to use the home loan benefit for decades. Also, there is no prepayment penalty. You can pay off the loan without fearing additional fees.
Are you ready to get a VA home loan in Houston? The program serves the purpose as the lenders allow 550 credit scores. If you wanted to get a traditional loan, you would be stuck with a minimum of 620 scores. In this way, you can save more on the monthly mortgage payment and unlock financing easily. Work on your credit scores for better benefits. If you are confused about the loan process, talk to a lender.