Understand the obstacles before applying for VA loans
10/19/2010
By Credit.com Staff
The Department of Veteran's Affairs offers a number of benefits to military men and women, including mortgage loans. VA-backed loans allow servicemembers to achieve affordable financing, often with no down payment, various repayment plans and lenient qualifying requirements, according to Nasdaq.
However, VA loans are becoming more difficult to obtain due to the current economy, making it harder for military families to secure financing. Servicemen and women are generally required to hold a credit score of at least 700 in order to qualify for a loan. Individuals with a score below 610 may not be able to secure financing, the newswire said. Military members may also be required to pay for a home appraisal performed by a VA appraiser. VA appraisers may be more stern with their assessments than civilian professionals, requiring the buyer to pay for costly repairs.
The VA also prohibits the buyer from paying many of the fees associated with homeownership, placing the burden on the seller instead. If the seller refuses to pay for title costs and escrow charges, the sale may not be completed.
Veterans should take all of the obstacles into consideration and speak with the VA prior to submitting their mortgage loan application.
