The First Thing to Know About the VA Loan

When a service member tells Angel Hernandez they want to buy a property in San Diego, the first thing he shares is that the VA loan is by far the best loan available. The reason is that it offers multiple exceptions that other types of financing simply do not. Two of the most common misconceptions he hears involve credit scores and who you can buy with.

The VA Does Not Set a Minimum FICO Score

Many buyers believe the VA requires a minimum FICO score. It does not. The VA itself has no minimum credit score requirement. Any minimum you run into is set by the bank or lender, not by the VA. That means a borrower who has been told they do not qualify because of their score may still have options with a different lender.

Can You Use a VA Loan With Someone Other Than Your Spouse?

One of the biggest myths is that a VA loan can only be used with your spouse. Part of that is correct, but it is not the whole story. A VA loan can also be used to purchase a property with someone who is not your spouse. Angel recently helped a client do exactly that.

What Changes When You Buy With a Non-Spouse

The difference is that the borrower does not use their full entitlement. They use half of it. Because of that, a down payment is needed. So while the purchase is possible, buyers should expect to come in with money down instead of the zero down option that comes with full entitlement.

How to Get Started

The first step is simple. Call Angel or visit his website and click “check my budget,” then send in your information so the two of you can begin reviewing the process and help you become a homeowner.

Sources

VA.gov
BenefitS.va.gov
ConsumerFinancialProtectionBureau.gov
HUD.gov
Investopedia.com