Hi everyone, my parents were told to consider a VA loan, so I was wondering what a VA loan means. Also, what are the benefits and risks of it?
VA Loans are loans offered by the Department of Veterans Affairs that are meant for military members or their spouses. A VA loan is aimed to help veterans obtain a house. These loans are personal and secured, and typically the best loan offered to veterans in terms of the home-buying process. One benefit of VA Loans is that they don’t require a large down payment to take out. This benefit makes it easier for military families to qualify for a home loan since they do not need to have a certain amount of money to take out the loan.
As was already pointed out, VA Loans are loans offered by the Department of Veterans Affairs for military members and eligible spouses. With any type of home loan, credit scores are very important. While the VA does not set a minimum credit score requirement for these loans, the lenders who do make the loans will typically have a credit score benchmark, with a common credit score of 620 or more.