Did you know the Department of Veterans Affairs does not set any credit score requirement for the homebuyers? However, the lenders fix a particular credit score requirement for an important reason – they ensure that the borrowers can pay off the loan eventually. Most of the lenders ask for at least 550 credit scores to determine your capability to pay down. Besides passing employment-related or duty-linked criteria, the credit score requirement matters too. If you are able to pass the credit requirement, you can build your dream home.
Now, VA home loan credit score 550 in Houston, TX offers zero down payment and no private mortgage insurance. Additionally, the mortgage provides a vast range of homes for catering to the homebuyers’ desires. But what are the options available? Even if you manage to acquire a 550 FICO score, you should check whether your choice of property is eligible. Like any other government-backed loan, it is possible to buy a single-family residence. It is one of the common purchases with the mortgage. There are other property choices present in the market. Let’s have a look at the types of property available with a VA loan for a credit score of 550.
Buying a condo is not possible with every mortgage but VA loans strike to be different from others. It is mandatory to receive a VA approval before acquiring the mortgage for one certain unit. The lender and real estate agent can offer you help in finding the appropriate properties for the condo. You can further ask the experienced lender about checking whether your selected condo is on the list. The authority checks the organizational documents and various policies; therefore, the process is pretty time-consuming.
Buying Modular Homes
The VA lenders approve of modular homes just as they approve of a multi-unit property. It is important to remember that modular homes and manufactured homes are not the same. The former is built following the standards of HUD. Also, HUD has an exclusive identification tag for these properties only. If you are going to apply for a VA loan, the modular home needs to be attached to the primary building. Hence, the home is built using the prefabricated pieces on the main site. Also, modular home calls for the use of a construction loan. So, the purchase of a currently existing modular home is similar to the stick-built home. Make sure the home receives certification from the state in which it has been constructed.
Currently, buying a new manufactured home is not possible. VA-approved lenders only refinance the presently serviced mortgages nowadays. So, you would have to wait and go through a hard time if you have been eyeing on mobile homes for a long time. Also, VA construction loans are quite tricky. It is better to take the help of a lender (experienced with VA loans) and ask about the approved list of properties. In case you need assistance to increase the credit score, the lender will always help, too.
Author Bio: Joan Gallardo, a Senior Loan Officer, with 20+ years of experience, here writes on 2 questions to ask the best mortgage lender in Houston when you are about to choose one of the first time home buyer programs in Houston.