VA Values Character Above Credit
November 12, 2018 | Phil Aitken
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Unfortunately, many of our country's troops return home injured so badly that the prospect of any sort of a career is unlikely.   In addition, the challenge of home ownership paired with a desire to stay put for a change seems unattainable for veterans with compromised credit scores.

Shoddy credit and low bank balances do not a likely borrower make, however the government has stepped up to help our veterans with a specific program designed for this exact candidate.  Veteran lending programs service a large and growing portion of the mortgage market.  In addition, delinquency rates are much lower than our nation's average.

Recognizing the need to house our country's many veterans, the VA has risen to the occasion financing $177.8 billion dollars worth of loans in 2017, approximately seven times higher than those of 2007.  

The VA uses a "residual income" methodology when it comes to underwriting as a more holistic means of considering the borrower's ability to pay a monthly mortgage.  This method, while somewhat unconventional, services unusual circumstances in a way that traditional, conventional loans cannot.  In many instances, veterans have no established credit and no hope of achieving the "usual" mortgage loan.  

Related: "The Affordability Factor"

VA loans are similar to affordability mortgages as designed for first-time buyers, however they differ in that the buyer's background weigh more than a credit score as this percentage of U.S. population is normally quite disciplined in general.

Hurricanes Harvey, Irma and Florence are perfect examples as to why major life events lend to worthy consideration of VA mortgages.  These programs may be utilized with little to no down payment and the government guarantees 25% of each VA loan, thus yielding a lower interest rate.  

Related: "Flo's Financial Pitfalls"

Sustainable ownership is the primary goal of VA mortgages with a focus on strong financial management and residual income.  

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For more information, contact The Aitken Home Team today!










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