Taking into consideration all the aspects of eligibility before you apply for a Texas Veteran or VA Loan, will help you save a lot of money and time. You will also find the process involved in obtaining the loan easy to navigate.
Credit scores have a role to play in VA loans. The VA has laid out requirements stating that there is no limit on the credit score. However, your lender probably has implemented their own credit score requirements. Texas Veteran Loans and VA mortgages both consider your ability to pay the monthly installments over credit scores, individual lenders can turn you away if you have experienced credit problems in the past. Just as is the case with income requirements you should speak to your lender to assess the credit score requirements since they can help you improve the credit score before you submit the application.
If you would like a Texas VA loan and would like to know whether it affects your eligibility, having a disability cannot impact a VA loan if you meet the standard requirements. If you were honorably discharged because of your disability you could be potentially exempted but it is something that you need to discuss with the VA. Some of the VA lenders count disability allowances as effective income while the disabled service-connected veterans are exempted from the VA Funding Fee, which makes the VA loan the ideal choice for disabled veterans.
The Texas Veteran Loan is quite similar to the VA mortgage and most of the eligibility requirements are actually similar. However, as the name might suggest, it is only possible to apply for a Texas Veteran loan if you are a Texas resident. It is a requirement that you actually live in Texas even though you might be serving outside the state and intend to continue living in Texas once you finish your service. Like the VA mortgage, the Texas Veteran Loan has house, credit score, financial, and military requirements that you first have to meet so that you can become eligible.
A question that keeps on cropping up is whether military spouses are actually eligible for a Texas Veteran Loan. The answer to this question is a firm yes, any surviving military spouses can apply for a certificate of eligibility even though this has its own requirements. You will only be considered eligible if you are not married currently. This does not mean that you cannot apply if you remarried after your spouse passed away but if you are still currently married you will not be eligible. If the marriage ended because of death or divorce, you will once again be able to apply for the loan.
The debt-to-income ratio is one important consideration that VA lenders will look at when determining whether to grant a veteran with a Texas Veteran Home Loan or not. This usually takes into account the amount that you pay out every month in debt payments and comparing the losses against the gross monthly income. Texas Veteran Loan or VA loans unlike other lenders usually consider the debt payments as a whole as opposed to separating the housing costs from other kinds of debts. 41% is the debt-to-income ratio the VA prefers but if you have a higher ratio, it does not mean that you are automatically ineligible. The best way to find out whether you are eligible is to discuss your income with your lender of choice since they can make exceptions in some situations.