3 Things to Know before Applying for a VA Home Loan Credit Score 550
Your credit score is a three-digit numerical number that reflects your creditworthiness. The higher the score, the better it would be for you. But there are some loan programs that allow you to get approval even with a low score. A VA loan is one among them.
Insured by the United States Department of Veterans Affairs and offered by a VA lender, it is a good choice for a low credit score buyers. You can get a VA home loan credit score 550 in Houston, TX. Before applying, you should know these things –
- There is no requirement for a minimum credit
The private lender, who will finance your VA home loan, will consider your overall credit history, and your monthly payments and income. But as there is no minimum credit requirement by the VA, lenders can’t deny a borrower for a VA loan for their credit scores. But there are exceptions too. While some lenders ask for a good credit score, others approve the loan despite a low credit score. So, if your credit score is too low, it is better to shop around to find the lender who offers approval. Besides, you can take steps to improve your credit score to get easy approval.
- Disabled veterans and service members may be eligible for this loan
VA grants are available to the members of the military who are disabled due to service-related injury. These VA grants are intended for homeowners to make improvements to their homes to increase their accessibility and offer a boundary-free living space. When a disabled service member or a veteran is receiving funding for a VA loan, they can obtain a VA grant along with this. It gives the borrower the ability to buy, build, or renovate an existing home. Service members and veterans are given grants like Special Housing Adaption (SHA) grant, Specially Adapted Housing (SAH) grant, and Temporary Residential Assistance (TRA) grant.
- Military spouses may qualify in some situations
There are circumstances where the spouse of a deceased military member may qualify for a VA loan. The spouse should not be re-married and some criteria need to meet. If the veteran or a service member was a Prisoner of War (POW) or Mission in Action (MIA) for a minimum time period of 3 months, then the spouse may be eligible for a one-time use of the VA loan. If the member died in a service-related incident or as a result of a service-related disability, the spouse can get approval for the loan. At the time of death, they were pronounced permanently and fully disabled for a specified amount of time and they met the eligibility requirements for disability benefits.
VA loan is a great option for veterans, military service members, or their surviving spouses who want to get approval for a home loan with a low credit score. So, look for a VA-approved lender and apply for the loan today!