SunTrust Bank announced that as of the middle of October they will be eliminating it’s VA Government Sponsorship Program and “will not purchase VA loans from VA Government Sponsored clients. What does this mean to Veterans and why would a bank make this decision?
First off, SunTrust is not saying THEY won’t do VA loans, only that they will not purchase VA loans from mortgage brokers or mortgage bankers. The loans must be originated by SunTrust.
This is significant to note because SunTrust has been one of the more conservative lenders, and what they do… many other banks follow through on.
Credit requirements for VA Mortgage Loans (which are 100% no money down loans) have tightened in the past six months. Although VA does not set a minimum score – most lenders are requiring a 640 credit score (higher than USDA and FHA) to get the best pricing.
If you are considering a VA Mortgage Loan, please call Steve and Eleanor Thorne, 919-649-5058. We have the lowest fees, and the best mortgage rates available!