Things You Can Do To Increase Your Eligibility to for VA Home Loans with Bad Credit
There are lenders who are more than willing to give VA home loans to those with bad credit. Their biggest concern however is whether you will be able to pay them off and if the debt you are taking on will be more than you can chew. There are things you can do that can increase your eligibility considerably to enhance your chances of finding a competitive VA home loan. Let us look at a few below.
New debts
You should avoid taking on new debts unnecessarily. Before taking on any new debt, you should carefully consider your financial position and even seek the advice of an expert if necessary. Any credit that you take up and struggle to pay hurts your chances accessing bad credit VA home loans or any type of loan for that matter. However, you can use debt to considerably bump up your credit score. The trick is to take on very little debt that you can handle and pay off in time. When it comes to your score, what you should know is that your 12-month financial history counts a lot.
Maintain proper documentation
You should at all times maintain good documents. In some instances, your credit may be bad for understandable reasons such as a bad business deal that you made, or medical reasons. If you have proper documentation, and you go looking for VA home loans, your chances of landing a lender with competitive rates will increase significantly.
Start doing something about your credit
If you have bad credit, start doing something about it right now. When you decide to go shopping for VA home loans the lender will definitely ask you why your credit is bad. If you have been doing something about it, your chances of landing the loan will increase. Now, what can you do to increase your credit? Let us look at that below
First off, always make sure that you are aware of and stick to credit card limits. Exceeding your limits gives the impression that you do not give much thought to your finances. Make sure that you have no overdrafts at any one time. Moreover, you should make sure that you make all your payments on time.
You should be mindful of your finances. Make sure you budget your income properly such that you are able to clear your bills and have some more to live on. No lender will be willing to give you any loan may it be conventional or a VA loan if you have no left over income. One of the biggest contributors to the success rate of the VA program is that loans are awarded to veterans who have enough income to live on.