Qualifying for VA Loans with Bad Credit
VA Loans are a very popular loan program for all that have served in the military and their families. It enables hard working veterans to qualify a little easier when compared to other types of loans.
- No minimum down payment required.
- FICO credit scores down to 500.
- Nationwide VA loan limits for single family homes is $453,100.
- Home sellers can contribute up to 4% of home buyer’s closing costs.
- In some cases, outstanding collections/charge off accounts do not have to be paid off.
- No VA loan debt-to-income ratio caps with an Automated Underwriting System (AUS) approval.
- Nationwide Mortgage specializes in helping borrowers with VA loans with bad credit.
- Working with a lender with no overlays, minimizes the chance of a loan denial.
VA Loan Requirement – VA Guidelines
Before approving a loan, the mortgage underwriter will be analyzing the credit payment history of the borrower.
- All realize that minimal credit score requirements to qualify for VA Loans.
- However, the VA loan requirement with credit score plays a factor in getting approved.
- The Automated Underwriting System would not have given the borrower an approve/eligible if the borrower was not credit worthy.
- Underwriters will go over the overall credit history of the borrower and make sure that the borrower has a history of paying their bills on time.
- VA Guidelines are very lenient but they want to see that borrowers had demonstrated financial responsibility.
- Past performance on timely payments is a good indicator that they will be paying their mortgage payments timely.