VA Loans and Credit Scores

Have you seen the new Remax Commercial that says “when he gets home… we’re going to buy a new home!” And then it pans to the guy overseas, and he’s looking for homes on the Internet!  LOVE that Commercial!If you’re one of those folks looking forward to taking advantage of your VA Benefits, check out your credit score!  The Veteran’s Administration does not actually make VA home loans… but they INSURE them.  Because of this, the VA gives guidelines for who they will insure, and what their credit scores should be.I’ve recently been writing that Credit Scores are getting tighter in NC, and I’ve said that “it’s the Golden Rule” because the Banks are the ones who are setting their OWN guidelines about who they will loan money to and under what circumstances.  In recent months, Veteran’s who have scores UNDER 620 have had a hard time getting a loan.The VA says they will insure loans for Vets who have scores down in the low 500’s – however, getting a bank to actually loan that money will be HARD. Also – IF you can get a loan with scores under 620, then you will have a significantly higher interest rate… if today’s best mortgage rates are 5.25% … and you are applying for a VA loan, you will likely have a rate of 5.875%!So work on your credit scores!  Check and see what your scores are!  And remember… it’s a great benefit, so don’t waste it! ALSO… if you are a first time homebuyer, you might qualify for a $8000 tax credit!  For more details, click here!If you have questions about purchasing a home in NC – call Steve and Eleanor Thorne, First Financial Services, Inc at 919-851-3031