Introduction
VA loans are one of the most popular mortgage options available to veterans and active-duty military personnel. These loans offer several benefits, including no down payment, low interest rates, and relaxed credit score requirements. However, like any other mortgage, there is always a chance that the loan may fall through. In this article, we will explore how often VA loans fall through and what you can do to ensure that your loan closes successfully.
Understanding the Factors That Affect Loan Approval
Before we dive into the statistics, it's essential to understand the factors that affect loan approval. Here are some of the key factors:
If these factors meet the lender's requirements, the loan should be approved without any issues.
The Statistics
The good news is that VA loans have a lower foreclosure rate than conventional loans. According to a report by the Consumer Financial Protection Bureau (CFPB), VA loans had a foreclosure rate of 2.19%, compared to the national average of 3.86%. This suggests that VA loans are less likely to fall through than other mortgages.
However, it's important to note that there is still a chance that your VA loan may fall through. The CFPB report also found that the most common reasons for loan denial were related to credit history and debt-to-income ratio. Therefore, it's crucial to ensure that your credit score is in good standing and that your debt-to-income ratio is within the lender's guidelines.
Tips to Ensure That Your VA Loan Closes Successfully
Here are some tips to help you increase your chances of getting your VA loan approved:
Conclusion
In conclusion, while the chances of VA loans falling through are lower than conventional loans, it's still important to take steps to ensure that your loan closes successfully. By understanding the factors that affect loan approval and following these tips, you can increase your chances of getting approved for a VA loan.
At Mortgage Brokers Pro , we specialize in helping veterans and active-duty military personnel secure VA loans. Our team of experienced loan officers can guide you through the process and help you find the right loan for your needs. Contact us today to learn more about our VA loan options!