VA Loan Advantages
Let’s face it, having bad credit is not exactly a shining star that stands out in a good light when you apply for a home loan. In fact most lenders, especially private lenders, tend to stay away from such applicants and would rather set them aside than take the risk of investing in such an applicant. Now that’s not to say that those with bad credit won’t ever be able to obtain a home loan. Not at all!
That’s where government loans come in to play. In fact there is one in particular that we will discussing in detail today and that is VA loans for bad credit.
VA loans for bad credit are loans that are guaranteed by the U.S. Department of Veteran Affairs and are issued through private lenders that are approved by the department. This loan does not require any down payment nor has mortgage insurance, making it a convenient option for those with limited funds.
VA Home Loans Advantages
Part of the reason why VA home loans are so popular is due to the several benefits that it provides to the borrowers who use this loan.
v The VA does not require the borrower to pay a down payment
v People with low credit scores can apply for this loan and still be approved unlike conventional loans
v The requirements for VA loans tend to be more flexible compared to other government and conventional loans
v There is no need to pay for a Mortgage Insurance Premium (MIP)
v The VA offers lower rates as compared to conventional loans
v People with higher debt to income ratios are also approved for the VA loan
v If the applicant is facing foreclosure, then the VA steps in to negotiate with the lender on your behalf
Joan Gallardo with his 18+ years of experience as Senior Loan Officer is a wealth of knowledge dealing with VA loans for bad credit. Through his articles, you can get to know detailed information regarding applying for VA loans for bad credit along with information on the application process, eligibility criteria and benefits that it provides to borrowers.