Four Things VA Lenders Don’t Tell Veterans

Veterans should take advantage of their VA home loan benefits when buying a home. The VA home loan program is usually the best option for veterans and active duty service members. Most VA lenders are willing to offer more favorable terms because the VA guarantees a percentage of the loan. But, some lenders don’t tell veterans things that would help in the application process.

Fortunately, this article will uncover some of these hidden secrets related to VA loans. Veterans can gain insight into how to use these secrets to their advantage when applying for VA loans.

1. The VA Does Not Set The Minimum Credit Score

The VA does not set a minimum credit score for VA loans. However, most lenders will require a minimum credit score of 640 or 620. Some lenders may require an even higher credit score, but these minimum score levels are not necessary.

HomePromise has helped veterans and active duty military members buy a home with credit scores as low as 580! So, it matters what lender you choose. Call HomePromise at 800-720-0250 to talk to a VA home loan expert for more advice.

2. VA Loans Are Usually Better than Other Loan Options

Some lenders encourage veterans to pick other loan types due to a lack of experience with VA loans. Some lenders like doing conventional, FHA, or USDA loans and don’t want to do VA loans even though they offer them. What some VA lenders don’t tell you is that the VA loan program is usually a better option for most veterans.

There are many different types of home loans available. Two of the most popular are conventional loans and VA loans. Both loan types have their advantages and disadvantages. Therefore, it’s important to understand the difference between them before choosing a loan.

Conventional vs VA Loans

Conventional loans are typically offered by banks and other lenders, and they’re the most common type of home loan. They’re typically available in fixed-rate or adjustable-rate options, and they can be used for purchases or refinances.

One of the main disadvantages of a conventional loan is that there’s no government guarantee making them easier to qualify for. Also, they usually require a higher down payment than VA loans.

VA loans are backed by the U.S. Department of Veterans Affairs and are available to eligible veterans. This type of loan is also available to active duty service members, reservists, and surviving spouses.

One of the main benefits of a VA loan is that there’s usually no down payment required.  Conventional loans require a down payment and if your down payment is less than 20% you may have to pay monthly mortgage insurance.  VA loans have no monthly mortgage insurance.

Lastly, VA loans often come with lower interest rates than conventional loans. However, you’ll need a VA Certificate of Eligibility (COE) in order to qualify for a VA loan.  HomePromise can get your COE for you.

FHA and USDA vs VA Loans

There are a few key differences between VA loans and FHA or USDA loans. For one, VA loans are available only to veterans, active duty service members, surviving spouses of veterans, and certain reservists and National Guard members.

Secondly, VA loans come with unique benefits, such as no monthly mortgage insurance premium. As a veteran or active duty service member, a VA loan is usually the best option for you. With flexible requirements and lower costs, VA loans are an excellent choice for those who qualify.

Reach out to a VA loan expert with HomePromise at 800-720-0250. We are always available to help answer any questions you might have. We have helped veterans and active duty military members achieve the American Dream – even with credit scores as low as 580.

3. You Can Use Your Benefits More Than Once 

As a veteran, you may not be aware of the potential to use your VA home loan benefits multiple times. You can use these benefits as often as you want. You may be able to use your remaining VA loan benefits, even if you have already used them in the past.

There are a few calculations and rules to follow when using your benefits two or more times.  The rules can be complicated, call a HomePromise VA home loan expert for help at 800-720-0250.

If you’re refinancing an existing VA loan, you’re still eligible to use your VA mortgage benefits again. Using your benefits a second time may be helpful to lower your interest rate. You may be able to take advantage of the streamlined VA Interest Rate Reduction Refinance Loan program to lower your interest rate.

4. You Can Refinance With A New Lender

Veterans may be surprised to discover that they can refinance their homes with a new lender. You don’t have to do your refinance with your existing VA lender.

Taking out a new loan can bring several benefits. Benefits may include lower interest rates, improved terms, and other advantages. Make the most of these opportunities by considering a new loan with HomePromise.

Veterans can use home equity to improve their finances. They can pay off high-interest credit cards, fund home improvements, or pay for college tuition. This can be done through a VA cash-out refinance.

Veterans should research options carefully and get advice from a VA home loan expert. The VA loan experts at HomePromise will help you explore all possible options. They will also help ensure you are making the best choice for your needs. Call now at 800-720-0250.

Get The Best Advice With HomePromise

Knowing the secrets of VA lending in this article can help veterans save time and money. Veterans should also make sure to ask questions and get a full understanding of the terms and conditions of the loan. Knowing the details of the loan and the total cost of the loan is essential to making the best decision.

Talk to a HomePromise VA loan expert to understand all VA loan fees, requirements, and options. You’ll get expert advice about the best VA loan for your needs.

As a veteran, you earned your VA home loan benefits so, don’t allow common mistakes to stop you! Get informed and start your VA loan application with HomePromise at 800-720-0250.