Tightening VA Mortgages All Across The BoardBy admin On July 9, 2010 Under VA Credit Requirements, VA Purchaes Loans, VA Refinance Loans
If you were one of the few who got a VA mortgage a couple of years ago with no problems you’ll find it’s getting harder to get one these days. Even if you just want to refinance your home with a VA loan, they’re tightening the requirement.
Earlier this year VA mortgage loans started following the nation’s major lenders in limiting the conditions to get a mortgage. You’ll still get a no down payment if you have a credit score of 610 or more but if it’s lower you won’t get a loan through the Department of Veterans Affairs (VA). You’ll have to spend a couple of months building your credit before you can get a loan.
About two years ago major lenders started limiting the conditions for getting a loan. The cutoff on credit score is 600 in some banks, you now need an appraisal on the house, and lots of paperwork. To get a VA mortgage your credit score has to be more than 610, the same as if you’re trying to get a loan through major mortgage banks.
Before they made these changes you could get a VA loan with any credit score, little paperwork, no appraisal on the house, and no down payment. Now you need a credit score of 610 for most lenders, an appraisal on the house, which can cost up to $300 or more, and more paperwork to secure your loan.
It’s not that much more you have to do but they do make it harder to get a VA loan than it used to be. Sometime you’ll have to wait a couple of months before you get the loan to build up your credit score. A VA mortgage loan is still one of the best mortgage loans you can get these days because of the interest rates and the easy of getting one. But like most things these days you’ll have to work at it.
So far this year VA loans have fallen and the nation’s overall loan volume has increased to about 19 percent. That just means more veterans are having a harder time getting the loans because of the increase in credit score and the appraisal they have to get before they can get the loan. This is not necessarily a bad thing but it does make it harder for military personnel to get a home loan.
Just remember to pay your credit card bills on time and any other monthly payments you have. It helps increase your credit score. You can also fix your score if there is a problem with your credit report. Contact the company who created the problem and get them to send you a letter saying it was their fault it was recorded wrong. It takes a bit of time but in the long run it’s more than worth it.
Getting a VA mortgage may be getting harder for veterans to get a home loan but the interest rate and the backing of the VA help secure your loan for your house.