15 February 2016
Comments: Comments Off on The Possibility of Getting a VA Home Loan with Bad Credit

The Possibility of Getting a VA Home Loan with Bad Credit

VA home loans are mortgage loans insured by the Department of Veterans in the United States. VA approved mortgage companies offer the loans while the Department of Veterans oversee the program and incur part of the cost in case of default.

 

These loans’ main objective is to financially support qualified American veterans and their surviving spouses as long as the veteran hasn’t remarried. They offer 100% financing without mortgage insurance and the veterans are eligible for a streamline refinance in the event that rates plummet.

The Possibility of Getting a VA Home

Credit history plays an important role in every home buyer’s qualification for loans. As with almost all loans a median credit score requirement is set to determine eligibility. With VA home loan lenders, the minimum score is 620. They also need the applicant to not have outstanding judgments and collections.

 

However, for many veterans their score falls short of this threshold. Maintaining a good credit score is a challenge to many military families due to distant deployment or physical injuries. The good news is that it is still possible to [get VA home loans with bad credit].

 

VA home loans enjoy less strict rules on credit than most conventional loans provided you have stable income. For instance if you made late payments recently due to special circumstances, lenders may not discredit you from acquiring a loan. Same case applies if you exhibited regular and timely payments. Special circumstances in such instances may include factors like unfavorable insurance policies.

 

Normally the lenders require that you have no outstanding collections. However, they can overlook this if there is a payment schedule in place. It is even possible to [acquire the VA home loan regardless of inadequate credit] if you filed bankruptcy due to negative credit ratings or unavoidable circumstances. Experts also advice that to increase your chances, you should avoid multiple inquiries on your credit report.

 

There are some VA approved lenders that specialize in catering for veterans whose credit fall below the credit score benchmark. Veterans United for instance, with their Lighthouse Project have helps veterans in changing their credit ratings by offering free payment plans and professional advice. They also offer loans to some with poor credit but who show commitment. VA Mortgage Center offers the same service while systematically boosting clients credit scores.

A highly recommended company that caters for poor credit borrowers is Home lenders for all. It has helped countless people throughout America access loans. They basically facilitate comparison of mortgage rates from several lenders based on one’s individual circumstances. Other such companies include Lending Tree, The Lenders Network and Florida mortgage lenders. To the struggling veterans, [getting that VA loan with poor credit] is achievable but it requires commitment to boosting those ratings.