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Contributor
IF MY CREDIT SCORE IS LOW WILL VA STILL HELP ME BUY A HOME WITH 0% DOWN. BUT I CAN PAY THE CLOSING COST. ALSO HOW LONG DOES IT TAKE TO GET THE HOME YOU LIKE?

6 REPLIES

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Thanks for posting. Since this is an account specific question, I encourage you to contact a member representative using the CONTACT US button on usaa.com or by calling 1-800-531-8722. They are more equipped to answer your mortgage questions. Good luck buying a home!

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Don't borrow 100% of the house price! Are you mad?

If you cannot place a 50% down payment then you cannot afford home ownership. Stick with renting while you educate yourself about the home-buying process.
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A good suggestion is to at least put down 20 to 25% of the mortgage. At least you can avoid most of the PMI costs.

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There are no PMI cost for VA loans. VA may be the better route. Since it is a 100% financing and rates are still low.
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I stand corrected. You are right. There are not PMI costs. I never did a VA loan for my home.  

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My personal opinion is that if you both have a low credit score and have no money to put towards a down payment, you are not able to afford to buy a home. I think you would be much better served by taking a few years to "get your financial house in order". Meaning: pay your bills on time to bring your credit score up, don't take out any new debt, get rid of any debt you do have, and save up for the 20% down payment. That will put you in a much better position to handle home ownership, with all of the surprises and costs that go along with it. Don't underestimate the benefits of renting (flexibility, not responsible for repairs and maintenance, etc.). If you are financing 100% of a home purchase anyway, you will be putting such a large portion of the mortgage towards interest that you really aren't doing yourself any favors in terms of building equity, and you still have to shoulder all of the costs of home ownership.

 

I hope this helps. Good luck in whatever path you do end up taking.