Updates, news and information about Whidbey Island Real Estate.
Top VA Loan Questions From Military BuyersMay 25th, 2012 at Fri, 25th, 2012 at 11:08 am by Rick Schutte
Every week, we field a number of questions from our VA buyers regarding VA loan questions. VA is an outstanding loan program and we would like to make this information available to all of our readers. Here are some of the top questions we respond to.
Q: How do I deal with bad credit?
A: Bad credit is a common challenge. In order to qualify for VA financing, military home buyers must have at least a 620 credit score. This minimum can be a stretch for those with a past bankruptcy or foreclosure. We work closely with credit-challenged military buyers. Rather than dismissing applicants with low credit scores we partner with the potential borrowers to help point them in the right direction to repair their credit rating and position themselves to qualify for the loan.
Q: What if my spouse has bad credit?
A: All VA loan borrowers and co-borrowers will be under close scrutiny by a lender. Credit scores for both applicants have to measure up to the 620 minimum. It may be advisable for a potential buyer to obtain a loan without a co-borrower, provided the solo borrower can afford the mortgage payments and meet all criteria.
Q: What can I buy with a VA loan?
A: VA loans can only be used to finance primary residences (up to a 4-plex if the veteran lives in one unit). Vacant land and commercial properties are ineligible. It is possible to finance new construction with a VA loan, but only through certain lenders.
Q: What are current VA loan rates?
A: It’s not uncommon for VA loan interest rates to be lower than conventional loan rates. But as with any loan, the interest rate on a VA loan will shift with the market. Borrowers can get a sense of VA rates during the pre approval process.
There are many local lenders and qualified real estate professionals here on Whidbey Island that can help with the VA process. If you or someone you know has questions that aren’t answered here, there are many available resources available locally. We are proud to serve our military and our veterans.