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Command Post What is this?
Posted on Aug 5, 2020
U.S. Department of Veterans Affairs
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1LT Vance Titus
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I used my VA home loan benefits for the first time four years ago and then again last year. Don't know why I waited so long. Zero down got us into a home four years ago that we couldn't have managed otherwise. Great program. Work with a lender or mortgage person experienced with the VA loan guarantee program.
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SPC Julio L Ruiz
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Edited 3 mo ago
There is no special privilege for VETs, except for the no down payment benefit. If you don't have good or acceptable credit, don't even bother until you are in an acceptable range.
An acceptable range for VA is actually 660. And then your credit report is also a determining factor. Your eligibility does not mean zip. You still have to go through the process like any other person. No one will help you if you are middle class or below. No one is willing to take a risk for or with you. A lot of red tape out there. There are no home developments being built for the middle class or for low income people any more. I speak out of experience and for myself.
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John Burke
John Burke
2 mo
Unfortunately it sounds like you've dealt with some bad lenders.
I can go down to a 600 score on VA & FHA loans but, thanks to COVID19, the rates are a little higher for the lower scores.
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SrA Andres Alejo
SrA Andres Alejo
1 mo
The VA home loan is a big help. You would normally pay about 20% of what your house cost. I am glad I did not have to come up with 37K. Talk to more lenders. My lender helped me fix my credit so we could get my score higher.
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SSG Bo Feitshans
SSG Bo Feitshans
1 mo
I have to agree with John on this one. As a mortgage banker and 10-year Army veteran, I assure my comment's come strictly from VA Pam 26-7. The VA has no credit restrictions, however individual lending intuitions have the right to set their own floor on VA credit scores they are willing to approve. Typically, credit scores in the range of 600-630, is as low as lenders will approve, but I have seen as low as 580.

Veterans using the VA home loan program have outstanding benefits (special privilege's). Starting with mortgage insurance for example, If a borrower has a 650 credit score and want's to buy a home with a loan amount of $300,000 and only 3-5% down payment on a conventional loan, then their mortgage insurance premium could be as high as $400/month. I just ran a quick MI quote and that's what was generated.
Veterans on the other hand don't even have to think about that because there is no mortgage insurance expectation. On top of that, veterans can easily purchase a home with $0 down. Home down payments can be someone's life savings (considering a 30-35 year old or someone in a lower income bracket). Instead of being forced to deposit that money on a home purchase, the veteran can control those funds however they choose. That truly goes a long way for most buyers and their families.

That same non veteran 650 credit score borrower I just ran rates, and their interest rate could easily be between 4.000% to 4.500%. But, that same scenario as a Veteran and this morning's rate is showing 2.875%. The lower rate here saves them nearly $250/ month.
Combining the VA sheltered rates for lower credit borrowers and the no mortgage insurance benefit and overall the non-veteran is looking at $650+ in extra monthly cost. But the Veteran stands to save that $650. Truth is there are good lenders and bad lenders and some that just don't want to take on more time consuming loans. I would recommend doing some research on VA Pam 26-7 and other VA loan focused articles. Doing a little homework is always a good approach. Another way to start learning is to make a few calls to mortgage bankers and ask questions. I always appreciate a veteran caller coming to me to learn how to achieve their homeownership goals!

Best of luck,
Bo Feitshans

VA Pam 26-7
https://benefits.va.gov/warms/pam26_7.asp
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SGT Dawn Wilson
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If both a husband and a wife have there own separate VA home loan certificate can they use both towards the same house. One to purchase and the second to refinance?
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SPC Navshad Lalani
SPC Navshad Lalani
1 mo
yes they can but it will not make any difference on the terms of the loan, you only need one person eligible to buy a home with va. also it might be better to use only one persons so you can use the other to buy another home if you relocate. you can also buy two homes with one eligibility certificate depending on how much more va guarantee you still have on the certificate
Platinum Financial Services Naush Lalani, Broker NMLS 395028 BRE 01034450 CELL: [login to see] FAX: [login to see] [login to see] Zero Down Financing Available, Bad credit, no credit, bankruptcy, Forclousre, short sale, tax lien, collections ok.
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