How to Get a VA Loan With a Challenging Credit History

How to Get a VA Loan With a Challenging Credit History

A VA loan is a specialized type of government loan, backed by the Department of Veterans Affairs (VA). It allows you to qualify for a low-cost mortgage when you’re looking to purchase or refinance a house even if your credit isn’t perfect.

If you’re on active duty in the military, a military surviving spouse, or are a veteran, you’re potentially eligible for a VA loan.

VA loans have several advantages over conventional loans including lower interest rates, less strict borrowing requirements, and no down payment due at closing.

VA home loans also don’t have any monthly mortgage insurance. In this guide, you’ll learn to navigate your VA home purchase or refinance with or without excellent credit.

VA loans are issued by private lenders, such as a HomePromise, and guaranteed by the U.S. Department of Veterans Affairs (VA). Because of the government backing, if you’re considering a VA loan, you don’t need to have a perfect credit report.

You can secure VA financing or get a low rate and excellent terms. These loans are often easier to get than conventional loans because of their easier credit requirements.

Eligible VA loan borrowers don’t need to abandon their dreams of owning a home because of a low credit score. The best part about credit is that it is fluid which means that it changes constantly.

An improvement in your financial habits will cause your credit score to go up but knowing what to improve on can be confusing. If you’re not an expert in credit reporting, it’s hard to decide if you should pay off a debt, add more debt or close a credit card account.

If you’re ready to get started on your VA loan but need help navigating your credit options, you need help from an expert in VA loans with credit history problems.

Learn how you can get a VA loan with a challenging credit history from our VA loan experts at 800-720-0250.

Can You Get a VA Loan With Bad Credit?

When it comes to credit scores, anything less than a 680 FICO Score is considered bad by some VA lenders.  Other may consider credit scores under 640 a problem.

Beyond credit scores, lenders will be checking your credit report for things like how much you have available for a down payment, your overall amount of debt, and how much income you earn.

Cash is sometimes key when you have bad credit. The reason for this is that you may benefit from paying down or paying off various debts to improve your credit.

Picking a lender like HomePromise important because HomePromise does not add lots of extra rules on top of the VA lending guidelines like many other lenders.

One key benefit of HomePromise is our ability to help people with difficult credit histories by approving loans for credit scores as low as 580.  Get in touch with us and see if you qualify.

Lenders Who Specialize in Bad Credit VA Loans

If you’re a would-be home buyer looking for the best mortgage lenders for bad credit, you’re not out of options. Home loans for bad credit are often backed by government agencies like the Veterans Administration (VA).

VA Loans are issued by private lenders and the Department of Veterans Affairs guarantees the loan. No down payment is required unless the home appraises for less than you’re paying for it.

You however do need to be a military service member or have a prior record of military service with an honorable discharged as a veteran. Surviving spouses of servicemen and women may also be eligible.

Lenders charge an origination fee which is an upfront fee for processing a new loan application, Most lenders charge an origination fee of 1% of the loan amount meaning $2,500.00 on a $250,000 loan. The HomePromise origination fee may save you thousands because its only $590!

Want to talk to VA loan specialists and find out more? Call 800-720-0250 today.

What It Takes to Buy a House With a Bad Credit VA Loan

VA loans are backed by the Department of Veterans Affairs and allow for the purchase of homes with $0 down. Unless you are a veteran receiving disability compensation, the VA will make lenders collect from you a one-time funding fee at closing.

Your home must meet specific minimum standards to qualify for VA financing. If you want to improve your credit, here are steps you can take that may improve your chances of buying a house with bad credit:

 ● Decrease debt

● Correct errors on your credit record

● Ask creditors to remove negative information on your credit report

● Don’t apply for more credit

These are general suggestions that help many people, but your specific situation might be different.  Our VA loan experts are available to help you with ways to raise your credit score that are unique to your situation. 

Please call today and talk to a HomePromise VA loan expert today at 800-720-0250.

How to Apply for a VA Home Loan With Bad Credit

Before applying for a VA loan, you need a Certificate of eligibility which you can get through HomePromise. With that paperwork, you can apply for a loan online with a lender like HomePromise. After serving your country, you deserve to have an easy time buying a home.

A VA loan could be your ticket to an affordable mortgage and a place to call your own.  You can apply with HomePromise over the phone or online.

Final Thoughts

Having bad credit doesn’t mean you can’t enjoy the benefits of homeownership as a service member, military surviving spouse or veteran. Instead, it might just require additional research when looking for financing. With a government-backed loan like a VA loan, you may qualify for a mortgage even with a bad credit score.

To find out if you’re eligible and how the VA loan works, give us a call at 800-720-0250 and talk to our VA loan experts.