Multiple VA Loans: Separating Fact from Fiction

Are you a veteran or active-duty service member searching for your dream home? If so, you may have heard whispers about the possibility of obtaining multiple VA loans. But with all the misinformation floating around, it’s time to separate fact from fiction.

In this article, HomePromise will help you understand multiple VA loans, which is an intriguing and often misunderstood subject. We will also assist eligible veterans in fully grasping their VA loan entitlement. For veterans and active-duty military members, it’s essential to understand how VA home loans differ from conventional mortgages.

Overview of the Benefits of VA Loans

VA loans are popular among veterans and military members because they offer many advantages and are a top financing choice. Some of the key benefits of VA loans include:

A VA loan lets you purchase a house without having to make a down payment. This is great for people who can’t afford a regular down payment or want to save their money.

VA loans usually have lower interest rates than conventional loans. This makes them more affordable throughout the loan’s duration.

“I would highly recommend HomePromise.” – Karen W.

VA loans don’t require monthly private mortgage insurance (PMI). Conventional loans require PMI if you make a down payment of less than 20% when buying your home.

Veterans and military members have easier credit requirements. VA loans are easier to get when compared to conventional loan credit requirements.

VA loans do not have any prepayment penalties or fees for paying off early. There are no penalties for paying off your loan before the due date. Therefore, we will not punish you for being financially responsible.

Refinancing is simpler for VA loan holders. The VA IRRRL is a good choice for refinancing VA loans with fewer steps than conventional loans.

What is a Multiple VA Loan?

There are many misconceptions about what a multiple VA loan is and how it works. A multiple VA loan is when one veteran has two VA loans at the same time. 

If you have an existing VA loan on your primary residence and want to buy a new home, you can often keep your existing VA loan and buy a new home with no money down again.

Call 800-720-0250 to speak with a VA loan expert and determine if you qualify for multiple VA loans. The rules can be complex.

Now, let’s dispel some of the myths surrounding multiple VA loans:

One of the most common misconceptions about multiple VA loans is that they are only for those who have great credit. This is not true! Multiple VA loans can be used by anyone who qualifies for a VA loan, regardless of credit score.

Many people think you need a down payment for every loan when getting another VA loan, but that’s not true. This is also not true! With a VA loan, you can often borrow up to the sales price to buy a property with no money down. However, there is a condition – you must have enough remaining VA eligibility.

It is also believed by many that you can only have one VA loan at a time. Wrong! You can actually have multiple VA loans at the same time, as long as you qualify for each individual loan.

Having a previous VA loan doesn’t guarantee automatic qualification for a new one. Each loan will still need to go through the normal underwriting process to ensure that you can afford the new payments.

Having multiple VA loans increases the cost of each loan compared to the previous one. Again, this is simply untrue. It really depends on market conditions at the time you apply for your second loan.

Pros and Cons of Multiple VA Loans

Pros:

1. May be able to own two or more homes with no money down
2. If eligible, rent an old home and use it as an investment property for making a down payment.
3. Use your VA benefits to get interest rates that are usually lower than conventional loans

Cons:

1. Because you’re buying homes with no down payment, if home values drop you may have a loan balance greater than the home’s value
2. There is a limit to how many VA loans you can buy with no money down which varies by county
3. If your first VA loan is large and your second VA loan is also large, you may need to make a down payment on your second VA loan.

Who Can Qualify and How Much Can They Borrow?

There are a number of VA loan myths out there, so let’s set the record straight.

First, you may have heard that only first-time homebuyers can get VA loans. The VA Loan program is for active duty service members, veterans, reservists, National Guard members, and eligible surviving spouses.

First-time home buyers and those who have bought a home before are permitted to use VA loans. There is no limit on the number of times you can use your VA loan eligibility.

Secondly, some think there is a requirement to pay a specific amount of money upfront on VA loans. This is also not true.

The VA loan program is a no-down payment program that allows generous seller credits for closing costs.  You can buy a home without paying any money upfront and the seller will cover all the costs of closing.

Last, some think that VA loans are hard to get. This is also not true. The VA Loan program is available for many active duty service members, veterans, reservists, National Guard members, and eligible surviving spouses.

You may even qualify for a VA loan with a minimum credit score of 580 and limited assets. Call 800-720-0250 to speak with a VA loan expert to see if you qualify.

Multiple VA Loans: Two VA Loans At The Same Time?

Veterans and active duty service members can have two VA loans. However, we do not allow them to use both loans to purchase two homes at the same time.

Many VA lenders have a requirement that you must use a VA loan to purchase your first home. Additionally, you are expected to reside in this home for a year before you can purchase another one. Some lenders like HomePromise may be able to make exceptions to that rule.

Unfortunately, there’s a lot of misinformation out there about multiple VA loans. Let’s separate fact from fiction and look at the real deal on multiple VA loans.

To buy another home with your VA benefits, some think you must first pay off your current VA loan. Once the loan is paid off, you can then apply for a new loan.

This is a common misunderstanding. You don’t have to repay your current VA loan to use your VA home loan benefits for buying a new home.

Some believe you cannot purchase a multi-unit property with a VA loan and then buy another one later. This is also not true. You can use your VA benefits to buy more than one multi-unit property like a duplex, triplex, or fourplex.

FAQs

First, let’s start with the basics: Yes, you may qualify to have more than one VA loan at a time. You may be able to use your VA loan benefits multiple times. This is possible as long as you’re buying a VA-eligible property.

-Are there any benefits to having multiple VA loans?

Multiple VA loans can offer an array of advantages for eligible veterans. Veterans may be able to easily buy two, three, four, or more properties with multiple VA loans, which helps them diversify their real estate investments. VA-backed loans offer low-interest rates and flexible repayment options, ensuring financial stability for borrowers.

Multiple VA loans provide veterans with the ability to use their VA benefits to build real estate investments. They may also help veterans secure their future and the future of their loved ones. This is achieved through strategic property purchases.

-Does having multiple VA loans mean I’m a high-risk borrower?

Having multiple VA loans doesn’t make you a high-risk borrower; in many cases, it will show a lender that you can handle multiple mortgage payments easily. This demonstrates your commitment to homeownership and financial stability.

By leveraging multiple VA loans, you demonstrate confidence in managing diverse properties while maximizing the advantages offered by this esteemed program.

-How many VA loans can I have at one time?

Some think you can only have one VA loan at a time. But, as an experienced VA lender, HomePromise has done three or more VA loans for one veteran. The VA loan program is great for buying additional real estate because it is flexible and offers benefits to veterans and service members who qualify.

The Department of Veterans Affairs allows veterans with remaining entitlements to obtain multiple VA loans simultaneously. This applies to those who already have a VA loan for their primary residence.

-Is there a limit to how much I can borrow with a second VA loan?

Veterans can confidently pursue a second VA loan for buying a new home or refinancing. There are no strict limits set for this opportunity. It is often possible to get a large loan amount on your second VA loan. But, there are some limits to be aware of. Call 800-720-0250 to find out more.

Ask a HomePromise VA mortgage expert about second VA loan limits. HomePromise understands complex situations. Veterans can confidently explore borrowing options by understanding nuances and working with experts – without fearing arbitrary constraints imposed on them.

Call HomePromise now at 800-720-0250

Conclusion

Understanding multiple VA loans can help you make better choices. This is especially important when thinking about getting multiple loans. By understanding these loans, you can maximize your benefits.

While there are certain restrictions in place, having two or more VA loans at once is still possible. You must meet all of the requirements laid out by the Department of Veterans Affairs. So, give HomePromise a call at 800-720-0250 to find out more!

Second VA Loan: Buy A Second Home with No Money Down

Are you a veteran or an active-duty service member looking to purchase a second home with your VA loan benefits? Or maybe you’re even planning to buy a third or fourth home with no money down using your VA benefits. With the advantages provided by a VA loan, you can make your homeownership dreams come true.

In this article, HomePromise explains what a second VA loan is and who can get one. We’ll delve into the numerous benefits that come with utilizing this unique loan option. And finally, we’ll provide valuable tips on how to maximize your chances of securing a second VA loan with HomePromise.

What Are VA Loan Limits on A Second VA loan?

The amount you can borrow for your second VA loan depends on the entitlement used from your first VA loan. The entitlement represents the portion of each veteran’s total home that the VA guarantees. So, when applying for a second VA loan, understanding your remaining entitlement is crucial in determining your borrowing power.

There are rules for using multiple VA loans simultaneously. You must live in your home for a year before you can buy another one. After one year, you have the flexibility and financial opportunity to expand your real estate investments. You can keep your prior home and rent it or use it as a vacation home.

“Our loan officer patiently walked us through many difficulties and obstacles.” – Maryland G.

A second VA loan allows eligible veterans and active-duty service members to use their housing benefits again for another property. Understanding how much entitlement remains from your initial loan will help determine how much you can borrow with this unique opportunity.

Discover the benefits of a second VA loan for homeownership with HomePromise 800-720-0250. It can open up new opportunities and bring potential rewards.

Who is Eligible for Second VA Loan Entitlement?

Veterans, active-duty members, and surviving spouses are eligible for VA loans. But, what about getting a second VA loan? If you are eligible for a first VA loan, you can use your remaining eligibility to obtain a second VA loan. However, you must meet income, credit, and other VA requirements in order to be eligible for the second loan.

You must show that the property you want to use your second VA loan for will be your main home. The VA does not provide loans for investment properties or vacation homes. You also must demonstrate that you have sufficient income and creditworthiness to qualify for the new loan.

There are rules regarding the amount of entitlement that can be used on your second VA loan. These rules also apply if there are any remaining funds from the first loan. It’s best to consult with a knowledgeable VA lender, like HomePromise, who specializes in VA loans to understand these nuances fully.

Make sure you check if you qualify and work with a skilled VA mortgage expert with HomePromise at 800-720-0250.

What Are Second VA Loan Requirements

Eligibility is determined by verifying whether an individual has sufficient entitlement remaining after their first VA loan. Additionally, lenders will evaluate the borrower’s creditworthiness and financial stability to assess their ability to repay the new loan.

Although there is no specific minimum credit score required, a good credit history usually helps secure favorable terms and interest rates. Moreover, steady income and employment stability are crucial factors taken into consideration during the loan underwriting process.

Properties purchased with a second VA loan must meet specific safety standards set by the Department of Veterans Affairs (VA). Veterans following these guidelines may be eligible to get a second VA loan easily and quickly for their housing needs.

What Are The Benefits of a Second VA Loan

The benefits of a second VA loan are numerous and may greatly enhance your financial situation. One major advantage is the ability to purchase a new home without having to sell your current one. This allows for seamless transitions between homes, eliminating the stress and pressure of moving quickly.

Another benefit is the potential for lower interest rates compared to conventional loans. Since VA loans are backed by the government, lenders often offer more favorable terms and rates. This can result in significant savings over time.

Additionally, a second VA loan provides flexibility in using your entitlement. If you didn’t use your entire first VA loan, you can use the remaining amount for additional loans. These loans can be your second, third, or fourth loan. This gives you more options when it comes to purchasing additional properties.

Furthermore, there is no requirement for monthly private mortgage insurance (PMI) with VA loans. PMI increases mortgage payments but isn’t needed for these loans, saving more money.

Veterans who earn more money after their first VA loan may be eligible for larger loan amounts when they apply again. This means they can potentially afford larger or more attractive properties.

How To Maximize The Benefits of A Second VA loan

1.Understand the benefits: Before diving into your second VA loan, take the time to fully understand the benefits it offers. These loans have lower interest rates and may not need a down payment, helping you save money in the long term.

2.Assess your financial situation: Evaluate your current financial standing and determine how much you can comfortably afford to borrow. Consider factors such as your income, expenses, and any other existing debts or obligations.

3.Plan for future needs: When considering a second VA loan, think about your long-term goals and plans. Do you anticipate needing a larger home in the future? If yes, you should take the necessary steps to make sure a second VA loan is possible.

4.Good Credit: Having good credit improves your chances of getting good terms on your second VA loan. This is true for any loan application. Pay off any outstanding debts and ensure that you make timely payments on all of your bills.

5.Get help: Call 800-720-0250 to get help from HomePromise’s team of mortgage professionals who are experts in VA loans. They have a lot of knowledge in this area.

To maximize your chances of getting a second VA loan, follow these tips. Make informed decisions that align with your financial goals. Take full advantage of the benefits available to veterans through this program.

How to Apply for a Second VA Loan With HomePromise

To get the most out of a second VA loan, pick a trustworthy lender, like HomePromise, who knows about VA loans. HomePromise is a lender that can help you apply for a second VA loan and understand the complexities involved.

To apply for a second VA loan with HomePromise, follow these simple steps:

1.Get your documents together: Before applying, gather paperwork like proof of income, bank statements, work history, and other relevant documents. Call HomePromise 800-720-0250 to apply for your certificate of eligibility COE.

2.Pre-qualification: Contact HomePromise to get pre-qualified for a second VA loan. During this step, they will evaluate your financial situation and determine how much you may be eligible to borrow.

3.Home Sales Contract: Search for homes then make an offer to the seller to purchase your new home.

4.Loan application: Once you are under contract for your new home, complete the formal loan application with HomePromise. They will assist you in filling out all necessary forms accurately and efficiently.

5.Appraisal and underwriting: After submitting your application, appraisal of the property will be conducted to assess its value. The underwriting process evaluates your eligibility for the loan based on factors like creditworthiness and income verification.

6. Closing: If approved by HomePromise’s underwriters, it’s time to close on your new loan! At closing, you’ll sign all required documents and pay any applicable fees or down payments.

Choose HomePromise for a second VA loan. You will benefit from their expertise in second VA loans. Additionally, you will receive excellent customer service throughout the entire process.

Remember that each borrower’s situation is unique. Consult HomePromise to find out if you qualify for a second VA home mortgage, tailored to your needs.

VA Home Loan: Why Pre-Qualification Is Your First Step

If you’re a veteran or an active-duty military member, you’ve probably heard about the many benefits of VA home loans. And if you’re considering buying a home using this fantastic program, then pre-qualification is your first step!

HomePromise offers expert advice and tips on VA home loans and low credit score improvement. Our focus is on military members and veterans. We give tips on home equity loans, VA loan limits, calculating your VA funding fee, conventional loans, and more.

When it comes to buying a home with a VA mortgage, understanding your financial capabilities is essential. Before you go house hunting it’s best to have a preapproval letter in hand so, keep reading to find out why. This is where VA loan pre-qualification comes into play. Pre-qualification is the first step in applying for a VA loan.

VA Loan Pre-Qualification

During pre-qualification, VA mortgage lenders evaluate your financial information such as income, credit score, and debt-to-income ratio. They use this data to calculate the highest sum of money they might lend you for a VA home loan. Remember, mortgage prequalification doesn’t guarantee approval or set terms. It just gives you an idea of what you might qualify for.

“I just want to say, this place has been amazing to work with!!” – Danna N.

Getting pre-qualified for a VA loan helps you concentrate on homes in your price range, which is a big advantage. It saves time and energy by helping you narrow down your search based on realistic expectations.

Additionally, being pre-qualified strengthens your bargaining power when making an offer on a home. Sellers like buyers who have already gone through screening as it shows they are serious and financially prepared.

By pre-qualifying for a VA loan, you’ll learn how much you can borrow before looking for a house. Remember, pre-qualification is helpful but final approval relies on other factors like a property appraisal and underwriting review.

Now that we’ve covered why VA loan pre-qualification matters let’s move on to the next phase – the actual application process!

The VA Loan Application Process

Getting a VA loan may seem hard, but with help and knowledge, it can be easy. The first step is to gather all the necessary documents and paperwork. This includes your Certificate of Eligibility (COE), which proves that you are eligible for a VA loan.

Once you have gathered all the required documents, it’s time to find a lender who specializes in VA loans. They will help you with the application and determine if you qualify for a loan. This will be based on your income, credit score, and other factors.

During this stage, it’s important to submit accurate and complete information to avoid any delays or complications. The lender will review your application thoroughly and may request additional documentation if needed.

After reviewing your application, the lender will issue a pre-qualification letter if you meet their requirements. This letter demonstrates that you are pre-qualified for a certain loan amount based on your financial situation.

Next is the home search. You should look for homes that have sales prices at or below the amount shown on your pre-qualification letter.

Once you find a home, you make an offer to the seller. The seller may counter the offer with a different amount. When you are the seller agree on a sales price, you should contact your VA lender to start the formal application process.

Next comes the appraisal process where an appraiser evaluates the value of the property being purchased or refinanced. This step is crucial as it determines whether the property meets minimum standards set by both the VA and lenders.

Once you have completed all the steps, you can confidently close on your new home. This is because you have successfully finished each phase of the application process.

Remember that every aspect of applying for a VA loan requires attention to detail and accuracy. By following these guidelines closely and working with experienced professionals like HomePromise, navigating through this process becomes easier than ever before!

Qualifying for VA Loans

When it comes to qualifying for a VA loan, there are certain requirements that need to be met. The first and most important criteria is having served in the military or being an eligible surviving spouse. This means you must have served at least 90 consecutive days during wartime or 181 days during peacetime.

In addition to meeting the service requirements, your credit history will also be taken into consideration. While there is no minimum credit score required for a VA loan, lenders typically look for borrowers with good credit. They want to ensure that you have a track record of making timely payments on your debts.

Another factor that lenders consider is your income and employment stability. You will need to provide proof of income and show that you have steady employment. This helps demonstrate your ability to afford the mortgage payments.

One advantage of VA loans is that they do not require a down payment. However, lenders may still assess your financial situation including any outstanding debts such as car loans or student loans.

How to Apply for a VA Loan With HomePromise

Applying for a VA loan with HomePromise is a simple and straightforward process. They understand the unique needs of veterans and strive to make the application process as smooth as possible. Here’s a step-by-step guide on how to apply:

Before starting, gather needed papers like your bank statements, paystubs, W-2 statements and tax returns for the last two years. If you are self-employed and own a business, you will also need your business tax returns..

Step 1: Get pre-qualified. Call to apply with HomePromise at 800-720-0250. Completing your application with a HomePromise VA loan specialist will give you an idea of how much you can afford when buying a house.

Step 2: Make your offer. Find your home and make an offer. Once you and the seller decide on a sales price you’re ready to formally apply for your VA loan with HomePromise.

Step 3: Appraisal of the Property.. After you apply for your loan and sign your loan documents, HomePromise will order a VA appraisal of your new home..

Step 4: Underwriting. Once your file is complete, a HomePromise VA underwriter will review your loan for approval. During this stage, they may request additional documentation or clarification if needed.

Step 5 Closing. Once approved, you will receive a clear-to-close notification from HomePromise. This notification will confirm that everything is ready for the closing of your new home.

Getting a VA loan can be easy with HomePromise. HomePromise VA loan experts help veterans achieve their dream of owning a home. So take that first step towards securing a VA home loan today!

Conclusion

By getting pre-qualified, you can find out if you’re eligible for a loan and how much you could borrow. This knowledge will empower you to make informed decisions as you navigate the VA loan application process.

At HomePromise, we understand the importance of pre-qualification for our veterans and their families. Our dedicated team has years of experience in helping individuals secure VA home loans with ease. We will help you through each step, making sure your journey to owning a home is easy and without stress.

So why wait? Take the first step towards your dream home today by getting pre-qualified for a VA home loan with HomePromise 800-720-0250. Contact us now to begin this exciting chapter in your life!

Remember, being proactive and starting early can save you time and provide peace of mind throughout your homebuying journey. Don’t delay any longer—reach out to HomePromise now! 

The Top 3 VA Home Loan Benefits Veterans Should Know

The VA Home Loan program is a mortgage option backed by the government. It helps veterans, active-duty service members, and eligible surviving spouses become homeowners. The VA created this program to offer cheap housing options to veterans who have served our country.

Call HomePromise at 800-720-0250 if you’re a veteran or an active-duty service member considering homeownership or refinancing your current mortgage. You will learn more about the VA Home Loan program from HomePromise VA loan experts. This program helps you own your dream home more easily. It also typically offers a low down payment, good interest rates, and no need for monthly PMI.

VA Home Loan Benefits Overview

The VA home loan program was established in 1944. Since then, the program has helped millions of veterans achieve their dream of homeownership.

A VA Home Loan lets you borrow up to the sales price of your new home without needing a down payment. This can be especially helpful for veterans who may not have substantial savings but still want to become homeowners. With traditional conventional mortgage loans, lenders typically require at least a down payment ranging from 3% to 20%, which can be challenging for many individuals.

“This was the only lending company that did not ignore me.” – John O.

Another significant benefit is that VA Home Loans generally typically lower interest rates compared to conventional loans. This means that over time, you could potentially save thousands of dollars in interest payments. The VA guarantees these loans, making them safer for lenders and enabling them to offer better terms.

In addition to no down payment and lower interest rates, VA Home Loans also do not require private mortgage insurance (PMI). Lenders often require PMI when borrowers put less than 20% down on a conventional loan. By eliminating this additional cost, VA Home Loans can make monthly mortgage payments more affordable for veterans.

The VA Home Loan Program helps veterans become homeowners by removing common financial obstacles. It offers invaluable benefits. Eligible individuals should explore these options and understand the benefits of these special offerings. These offerings are specifically designed for those who have served our country with honor and commitment.

Top 3 VA Home Loan Benefits for Veterans

To summarize, here are the top 3 benefits of the VA home loan program

1. Buy a home with no down payment
2. Typically Lower Interest Rates
3. No monthly private mortgage insurance

How to Qualify for VA Home Loan Benefits With HomePromise

Getting a VA home loan is easy because the VA has flexible eligibility requirements. Here are some key factors that determine if you meet the criteria:

Service Requirements: To be eligible, you must have served at least 90 consecutive days during wartime or 181 days during peacetime. If you served in the National Guard or Reserves, there is a minimum requirement of six years of creditable service.

Certificate of Eligibility (COE): Obtaining your COE is an essential step in qualifying for a VA home loan. This document verifies your military service and confirms your eligibility. You can get your COE quickly by calling HomePromise at 800-720-0250.

Credit Score Requirements: Lenders prefer applicants with a credit score of 620 or higher. However, the VA has no specific requirement for credit score and income. HomePromise has helped veterans get VA loans with credit scores as low as 580.

Additionally, demonstrating a stable income and employment history improves your chances of approval.

Property Guidelines: The property being financed must meet certain standards set by the VA. It should be considered suitable for residential purposes and undergo an evaluation by an appraiser to determine its current value.

By meeting these qualifications, veterans can take advantage of the numerous benefits offered through VA home loans.

Conclusion

The VA Home Loan Program offers a range of benefits for veterans that make homeownership more accessible and affordable. These benefits include:

• No down payment
• Competitive interest rates
• Flexible qualification
• No monthly PMI

Veterans typically can buy a home sooner without saving a lot of money for a big down payment. The ability to secure favorable interest rates means lower monthly mortgage payments and potential savings over the life of the loan. It’s easier for veterans to get a VA home loan because the qualification requirements are more relaxed than traditional mortgages.

Veterans need to take advantage of the opportunities provided by the VA Home Loan Program. By calling HomePromise 800-720-0250 you can learn more about your eligibility.

Now is a great time for veterans to explore the VA Home Loan Program. Whether you want to buy or refinance a home, this program is worth considering. Contact HomePromise today by calling 800-720-0250 for personalized help with VA loans and buying your home.

Every veteran is different, so it’s important to carefully consider their specific circumstances before deciding on financing options. The VA Home Loan Program helps many veterans fulfill their dream of owning a home.

3 Things to Consider Before Getting a VA Loan with a Low Credit Score

Before applying for a VA loan with a low credit score, think about these 5 things. Understanding the following steps will increase your chances of a VA loan approval with a low credit score.

Is The Minimum Credit Score for a VA Loan 620?

For VA loans, most lenders require a minimum credit score. In most cases lenders require a credit score minimum of 620, but not HomePromise. HomePromise has approved loans for veterans as low as 580.

It is important to know that the VA does not set a minimum credit score. VA approved lenders use credit scoring models to determine the likelihood of an applicant to repay their debts. VA lenders pick their own minimum credit score.

A higher credit score typically means you are financially responsible and a good credit risk for the lender. Therefore, setting a minimum score helps protect lenders and ensures they are making sound lending decisions.

While some VA lenders have a minimum credit score of 620, some may even send their minimum even higher at 640, 660 or 680. Call 800-720-0250 to find out if you qualify for a low credit score VA loan.

“Excellent company to do business with.” – Roy M.

HomePromise fights hard for our military members and veterans!

Sometimes a low credit score was caused by a difficult life event like an uninsured medical illness or job loss. Some VA lenders will take into account the reasons ro your low credit score instead of just denying your VA loan regardless of why your score is low.

You may be able to still get a home with a credit score below 620 by using a flexible VA lender like HomePromise. HomePromise specializes in VA loans to veterans with low credit scores. This means that owning a home may be more achievable than you first believed.

Do I need A Cosigner With A Lower Credit score?

If your credit score is low and you want a VA loan, you can consider having someone else sign with you to strengthen your loan application. If they have good income and a small amount of debt, they can help you qualify for a VA loan if your income is low or your debt is high.

However, a co-signer with a high credit score doesn’t erase your low credit score. VA lenders are required to still consider your credit history even if your co-borrower has a high credit score.

This is why it is important to find a VA lender that may be able to help you with a low credit score.  Call 800-720-0250 for more information.

Is a Down Payment Needed With A Low Credit Score VA Loan?

If your credit score is low and you want a VA loan, remember some important things. First and foremost, understand that the minimum credit score for many VA lenders is typically 620, 640 or sometimes even higher. Again, this is not the case with HomePromise.

If you have a low credit score, some VA lenders may require a down payment when applying for a VA loan. But, this is not true of all VA lenders. HomePromise may even make you a VA loan with no down payment even if you have a low credit score..

Every situation is different, so it’s important to talk to a knowledgeable VA loan expert with HomePromise. They will guide you through the process and help you evaluate your options based on your individual circumstances.

So don’t let poor credit discourage you from exploring VA home loan options! HomePromise can make owning a home easier if you understand the rules for low credit scores and are ready to buy a home. Call today at 800-720-0250.

5 Strategies for Strengthening Your VA Loan Application

VA loans provide an excellent opportunity for active duty service members, veterans, surviving spouses and their families to buy a home. But, with eligibility requirements, some people might find it tough to get approved for this type of loan. Fortunately, there are 5 strategies for strengthening your VA loan application.

Applying for a VA Loan

Applying for a VA loan doesn’t have to be a difficult process. If eligible for VA loan benefits, you’ll need to get a Certificate of Eligibility (COE).

HomePromise can get this for you, sometimes faster than going to the VA directly. We use a VA lender portal online to make getting your COE fast. This document proves that you’re eligible for the VA Loan program.

Be sure to have all of your financial documentation in order before starting your application. This includes things like pay stubs, tax returns, asset statements, and more. We will need this information to determine if you qualify for the loan. This information will also determine how much we’re able to lend you.

If you have any questions, don’t hesitate to reach out to a VA loan expert with HomePromise at 800-720-0250 for assistance. Our experts are always ready to help give you advice. Call today to see if you qualify to access affordable homeownership opportunities.

“I would absolutely recommend HomePromise to anyone in need of a lender!” Amy G.

1. Check Your Credit Score

A good credit score is important for many reasons. This can help you get the best interest rates on many kinds of loans and even credit cards. It can also help you qualify for a mortgage.

To increase your chances of being approved for a VA home loan, your credit score matters. In some cases improving your credit score will be necessary. The higher your credit score, the more favorable you will look. But, some lenders, like HomePromise can even help you with a credit score as low as 580.

There are some strategies to get a higher credit score. For example, you can try paying off any outstanding delinquent debts or collection accounts. Also, you can probably get a better score by paying down your credit card balances. Doing these things may help ensure your application is approved.

2. Get Pre-Qualified with HomePromise

Veterans and active duty military members may be eligible for a VA loan. The Department of Veterans Affairs provides a guarantee for these mortgage loans.This type of loan is also a great option for those with a military service connected disability.

It is important to remember that the VA does not lend money, that’s done by VA approved lenders like HomePromise.

The first step in applying for a VA loan is to get pre-qualified by a VA approved lender. Pre-qualifying means the lender has evaluated your credit score and financial documents to determine if you meet their standards for a VA loan.

Getting pre-qualified will give you an advantage when you’re ready to make an offer on a home. A pre-qualified letter will let the seller know that you’re likely to be approved for financing. 

Other requirements for VA loans are as follows:

• The home you choose must meet VA property requirements

• The appraised value would have to be at or above your purchase price

• In most states you will need a wood destroying insect inspection

• A title insurance company will need to issue a title policy

3. The VA Home Loan Application: What You Need

One of the most important things you can do is to make sure all of your financial documentation is in order. This includes your tax returns, pay stubs, bank statements, and any other relevant paperwork. Organizing your documentation makes it easier to review your application. This helps a VA loan underwriter give you a decision quickly.

Finally, it’s always a good idea to work with a qualified and experienced VA-approved lender like HomePromise. We can assist you throughout the entire process and help make sure everything is done correctly.

4. Appraisals and Inspections

VA appraisals are required in order to obtain a VA loan. Appraisals are conducted by a licensed appraiser and are good for six months from completion. The purpose of the appraisal is to determine the value of the property being purchased.

Home inspections are conducted by a home inspector. In some states home inspections must be done by certified home inspectors. The purpose of the inspection is to ensure that the property meets minimum safety and habitability standards.

The VA appraisal is not a home inspection. A home inspection is a visual assessment of a home’s present condition. Included in a home inspection report is a review of potential problems that will cost money to repair.

VA appraisals are used by lenders to determine the value of the home. VA appraisals are designed to look at recently sold comparable homes to determine what your home is worth. Although VA appraisers have to evaluate the condition of the home, they are not required to evaluate the home at the same level of depth as a home inspector.

5. Financing Your Closing Costs

You can’t finance your closing costs on a VA loan when you buy a home. But, you can finance your VA Funding Fee.

The VA Funding Fee can cost thousands of dollars. It is paid to the US Department of Veterans Affairs to pay for the VA guaranty of your loan. Rolling this fee into your loan amount lowers the amount of money you need on your closing date.

Like many veterans, you may find it helpful to finance your VA Funding Fee when you purchase your home. You can pay it in cash at closing or roll it into your loan amount. Most veterans and active duty service members finance their VA Funding Fee.

When buying a home, you may be able to get money for closing costs. You can ask the seller to pay for some or all of your closing costs. The seller may be more willing to make concessions when they need to sell quickly. Seller paid closing costs is a common strategy on VA loans.

The rules for closing costs can be complicated. Call a VA loan expert at 800-720-0250 to get your questions answered.