VA LOAN WITHBAD CREDIT?

CAN I GET A

If you are affiliated with the armed services and desire to purchase a home, one of the best programs available is a VA Home Loan.

The Veterans Administration (VA) assists active members, veterans, and eligible spouses of service members by guaranteeing a home loan.

While the VA doesn't offer the loans themselves; they do assure lenders that all or part of the amount borrowed will be repaid.

The amount guaranteed will depend on the amount borrowed. Loans are offered through mortgage companies, banks,and private lenders.

Because these loans are backed by the government, they are more likely to be approved at reasonable rates.

To get started, obtain a Certificate of Eligibility (COE) from the VA website and then apply for the loan through the lender of your choice.

However, it's not necessary to have a COE to get the process started; the lender can also obtain it on your behalf.

But what if you have bad credit? Can you still get a VA loan? The answer is yes, within certain guidelines.

While the VA doesn't place a heavy weight on the credit score, you still have to meet the requirements of lenders.

Therefore, it's best to have a minimum credit score of 600.You also shouldn't have outstanding collections.

If you have a clean 12-month history and a credit score of 600

You should be able to get approved for VA loan:

If you DONT quite meet these standards, simply hold off applying for a loan until you can demonstrate sound financial health.

Even though your VA loan may be approved with a credit score of 600, you will likely receive a better interest rate with a higher score.

Raising your credit score may take a little time, but it can be done. First, you will need to evaluate what's causing your score to be so low.

Raising your credit score may take a little time, but it can be done. First, you will need to evaluate what's causing your score to be so low.

Consistent late payments

High balances on credit cards or installment loans

Accounts in collections

If you aren't sure where you stand regarding credit, you are eligible to order a free credit report from the three major credit bureaus once a year at annualcreditreport.com.

Once you identify what's causing your low score, you're in a better position to fix the problem.

You can begin making payments on time each month, paying down your high balances, and making arrangements to pay off your collection accounts.

One thing to make sure of is that you don't owe the government any money. This will definitely hinder your application, so make it a priority to pay this debt off first.

With low or no down payments, the possibility of not paying closing costs, and no mortgage insurance requirement, a VA loan is one of the best ways to secure a home.

Your credit standing is only one aspect of your overall financial health that the lender will consider.

As long as you have a steady job, a good 12-month history, and a credit score of at least 600…

… you should be well on your way to getting approved for a VA loan and realizing your dream of home ownership.

Mortgage Originator Jimmy Vercellino, specializing in VA loans, helps veterans use their VA loan benefit to their greatest advantage.

Be a proud homeowner today. For more details call 480-351-5904 or visit the site www.valoansforvets.com

VA Loans for Vets7600 E. Doubletree Ranch Road #200 Scottsdale, AZ 85258Phone: (480) 351-5904Email: jimmyv@fcbmtg.com