Are You Interested in Bad Credit VA Home Loans? Here are The Eligibility Requirements
VA home loans are a great way for Veterans and those serving to get to own their dream homes. They have the distinct advantage of being one of the major loans that can be accessed without a deposit. Moreover, they allow refinancing though some parameters have to be met. Many people have gained interest in VA home loans as current VA data can prove. Some however face the challenge of bad credit hence the number of those after [bad credit VA home loans] has increased drastically. Below are some of the general eligibility parameters that you should meet to be considered by lenders.
The first batch of requirements are service related. If you have had 90 active days of consecutive service in wartime or 181 days during a peaceful time then you are eligible. Having 6 or more years in the Reserves or National Guard also renders you eligible. If your spouse was a service member who in the line of duty passed on or suffered a disability that was service related, then you are also eligible; whether current or retired does not matter as long as the above stipulations are met.
Before going out there to look for [bad credit VA home loans] or otherwise, you have to first of all acquire a certificate of eligibility. It is a document, formal in nature that describes the VA entitlement possessed. It can be obtained via the department of Veteran Affairs (VA). With some lenders such as Veterans united, the certificate is not necessary. However, in order to widen your pool of lenders it is a good idea to get the certificate. It is easily attainable in a short period. All you will have to do is to download and fill the VA form (No 261880). You can download the form from the Veterans’ Administration website and mail it after filling.
You will be pleased to learn that there is no threshold income level needed for eligibility. However, you must have reliable and relatively stable income. Moreover, your income must adequately cover your expenses including the loan you intend to take up. There should also be some income left over in case of anything. If you are particularly interested in [bad credit VA home loans], making sure your income is adequate becomes more necessary because of your poor credit and the scrutiny you will attract from lenders willing to give you a mortgage.
Other additional requirements that may be taken into consideration may include your debt income ratio. Your credit score will also be sourced from a few of the leading agencies and analyzed. For this reason, always strive to make your credit score better. Having been discharged from service under conditions that are dishonorable will automatically disqualify you.