At Wholesale Capital Corporation, we love VA loans because we want to help military veterans become homeowners. Plus, our experience is that VA loans tend to be lender-friendly, worry-free transactions that mortgage professionals can complete with relative ease. What makes them that way? Keep reading!
Many VA Loans are High Performance Loans
In the mortgage business, the term “high performance loan” refers to a loan that has no borrower delinquencies. When industry experts say that VA loans are some of the highest performing loans there are (beating out FHA loans, for example), it should come as no surprise. Ask any mortgage professional: They’ll tell you that VA loan borrowers are some of the most responsible homeowners out there, and we believe it’s absolutely true.
But why is it so remarkable that VA loans perform so well? In short, it’s because VA loans are no money down loans, and it’s very unique for no money down loans to be high performance. In fact, no money down programs have a historically high failure rate because so many of their borrowers eventually become delinquent; that’s why nearly every HUD-approved no money down program has dissolved since the housing crisis. But year after year, VA loans (including VA loans in California) continue to perform very well because they are such a low delinquency risk. In short, lenders love VA loans because they know these loans can be counted on to perform.
VA Loans Can Be More Flexible
While some home buyers may believe that their loan officer enjoys analyzing and scrutinizing every aspect of their lending profile, we assure you that is not the case. The truth is, most lenders would much rather have fewer problems to deal with when they are pre-qualifying borrowers. They like lending profiles that are easy to qualify, and that means they love when a borrower’s credit issues are minimal. But with a VA loan, it can be even easier for the lender to qualify the borrower because there can be more flexible credit requirements.
So, what is the minimum credit score for a VA loan? Many lenders look for a credit score of 620 or better for their VA loan applicants – but at Wholesale Capital Corporation, we try to give each military veteran applicant a fair shot at a home of their own, regardless of credit score. There is still an approval process, but for most of our VA loan applicants, that process is relatively simple and straightforward. And we like it that way!
VA Loans May Close More Quickly
You would be surprised by how many lenders allow escrow to drag on for months; at WCC, we pride ourselves on avoiding those headaches. With VA loans, we may be able to close even faster because VA loan closing costs don’t necessarily have to be paid by the borrower. When this happens, the entire transaction is simpler and it speeds up escrow considerably. All parties – borrower, seller and lender – can benefit from this.
If you are a military veteran or currently serving and you are interested in using the VA loan program to purchase a home, Wholesale Capital Corporation can answer your questions. Contact us at (855) 640-2020 to speak with a loan officer about your VA loan options.
Wholesale Capital Corporation is not affiliated with or acting on behalf of or at the direction of the Federal Housing Administration, Department of Veterans Affiars (VA) or any government agency/government-sponsored entity. WCC is licensed by the California Bureau of Real Estate, Broker License #01147747 and CA Finance Lender’s License #603K610. Also licensed in Arizona by the Arizona Department of Financial Institutions, MB #0926199. Equal housing lender.