Credit and Your VA Loan
Credit plays an important role in every potential home buyers’ ability to receive a loan for the home of their dreams. Prospective home buyers hoping to use their VA benefit will see that credit not only helps determine approval for the loan, but also plays a role in the interest rate you qualify for.
When considering purchasing a home with a VA Loan, striving for a good credit score is an excellent starting point.
Credit Scores and VA Lending
Credit scores play dual roles – helping both lenders and prospective home buyers in the VA mortgage process. Simply put, your credit score is a risk indicator, helping ensure you are a safe “bet” and that the loan will be repaid on time. This is not only meant to protect lenders, but to safeguard potential homeowners from being allowed to borrow more than they can handle.
A common worry among military families is the additional challenges when it comes to building and maintaining a good credit score. Frequent relocation, deployment and other issues can take a toll on finances. Luckily, most VA lenders have a credit score requirement of 580, and Veterans Of America Mortgage is no different in that respect. But what sets Veterans Of America Mortgage apart is its special focus on veterans who may fall below the credit score requirements.