The home loans allow aspiring first time homebuyers to buy a home of their choice easily and not worry about the expensive purchase price of houses in the city of Houston. Buying a home is a wish of nearly every person, even the war veterans who have served the country with honor and want to live in a house of their own once they retire.
The veterans have amazing opportunity to become homeowners with the help of Veteran Affairs (VA) loans which are solely offered to allow for veterans to buy a home without the difficulty of low credit score or paying a huge amount as a down payment. The VA loan with 500 credit score Houston means that veterans having a bad credit score also get a chance to obtain the loans and buy a home. The veterans mostly get disqualified from getting conventional loans as the banks consider it a risk as a veteran will most likely default on the loan. The credit scores are classified by FICO (Fair Isaac Corporation) and range from 300 to 850. The score above 600 is considered good while any score from 500-579 is considered bad and shows a person has missed debt payments for several months.
The VA loan with 500 credit score Houston are easy to obtain for the veterans if they have
- No outstanding debt in collections
- Have a stable income
- No outstanding judgements
The main purpose of the VA loans was to facilitate veterans to buy a home even if they have less than perfect credit score. The VA loans remove the hassles that veteran and even currently employed military personnel have to face when trying to obtain home loans offered by homebuyer assistance programs. The VA loan with 500 credit score Houston is given by approved VA lenders, and their risk is reduced as the VA department guarantees the loan if the veteran for some reason default on the loan amount. The VA department does not even have any minimum credit score requirement, but some VA lenders want veterans to main a particular credit score. The VA lenders to remove their risk ask the veterans to comply with certain factors which are
- Showing the real reason that caused the bad credit
- Having employment with the same employer for than 5 years
- Maintaining a low debt to income ratio; and
- Showing debt payments for the last 12 months