Can I Obtain VA Eligibility For A Home Loan If I Have Bad Credit?
If you have bad credit it isn’t the end of the world. You can still get a home loan. One option for those with bad credit is a VA loan. There are a few requirements to meet to see if you qualify. Read below to see if you meet these rules.
Military Employment
The first requirement is that you should have served in the US military in some capacity. You could have served in one of the four active duty groups which are the Army, Navy, Marine Corp, or Coast Guard. Or perhaps you were in one of the reserve units for one of the above groups. You could also be a member or former member of the National Guard. Finally, if you are a surviving spouse or unmarried surviving spouse that died while in active duty you too are eligible for a home loan with bad credit.
Stable Income
The second requirement is that you have an ability to repay the loan. It doesn’t matter if you have regular job income, residual income, or alimony as long as you can prove you can pay the loan. You need to make sure than your debts do not total more than fourty one percent of your income. If you already have a VA loan you must pay it off before getting a new one.
Certificate of Eligibility
The third requirement is you need to complete a certificate of eligibility. This can be completed online, or sent through the mail. This must be completed and on file. You will need a copy of this to be given to the loan agency to provide proof of miltary employment.
If you were dishonorably discharged there is still a chance that you can obtain va elibility for a home loan with bad credit. There are some time requirements that must be met. You will need to obtain the VA loan manual for your specific case.
*Affects pricing. With the No Closing Cost
Option, borrowers finance the closing costs instead of paying for them at
closing. Borrowers who pay closing costs at closing may qualify for a lower
interest rate. Some upfront fees (ex. credit report and appraisal) may apply
and may be credited at closing.
*Refinancing or taking out a home equity loan or line of credit may increase
the total number of monthly payments and the total amount paid when compared to
your current situation.
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