The VA loan is a life-saving mortgage option for the active and ex-military members, and we all know that. Moreover, qualifying disabled veterans can also opt for this option. But did you know the surviving spouses can also use the VA mortgage? The casualty resulting from the military service leaves an impact on the family in several ways and the surviving spouses can benefit from the federal home loan guarantee. However, the dependents or children of veterans cannot choose the loan program. Even if the surviving spouses are allowed, they can only pass under certain circumstances.
The surviving spouse can be eligible when the veteran has died in a service-related injury or become a prisoner of war. Additionally, if the military member goes missing in action, his/her spouse can inherit the loan benefits. Whichever way the situation be, the credit score remains to be one of the crucial factors. Yes, the surviving spouses also need to prove the minimum credit score for VA loan in Houston before being eligible. Take a look at the following questions which a VA lender may ask a surviving spouse.
What is your credit score?
Before everything, you should know that the Department of Veterans Affairs does not fix the credit score requirements but the lenders do. So, the credit score cutoffs can vary; however, the minimum requirement is 550 in Houston. The lenders need the scores from at least two different credit agencies for observing the different scores. When there are two scores, the lender relies on the lower score. When the borrower presents three scores, the middle one is considered.
Do you have a stable income?
For how many years you have been working in the same company? Can you prove your statement with two-years of experience? When you are unemployed, this can become a factor for the credit scores as well. Or, a varied or an erratic employment is another sign for trouble for VA loan seekers. The lender wants to know whether a surviving spouse has been employed for at least two years. If you do not have a stable job, the lender could mark you as not ready for the loan yet. The longer you have been holding on to a job, the better.
Have you ever had a history of foreclosure?
When you have had a history of Chapter 13 bankruptcy, you might have to follow a waiting period of 12-36 months. Again, if it is for Chapter 7 bankruptcy, your waiting period might be for 24-36 months. Based on the entire credit score strength, the waiting period for a foreclosure is 24-36 months. Meanwhile, remember, the waiting period for a VA loan is way shorter than the regular mortgages.
Besides following the waiting period or seeking stable employment, credit score can break or deal even for the surviving spouses. Got any other questions? Want to talk over the options you have? For finding the perfect solution, you should have a thorough discussion with a professional lender!
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.