Is there any easy way to get the best VA loans for bad credit in Houston? Read below what kind of credit score is required for VA home loans.
You may be qualified for a VA loan if you are an active-duty military member, veteran, or surviving spouse. However, military life is difficult, and this is frequently reflected in your money. It's fairly unusual for service people to have credit problems. As a result, you may be wondering how to receive the Best VA loans for bad credit in Houston.
Any loan is difficult to acquire with bad credit, but it is feasible to qualify for a VA home. However, keep in mind that if you are approved with bad credit, your loan conditions will be less favorable. So, before you apply for that loan, you should concentrate on boosting your credit.
What Is Considered A Decent Credit Score for A VA Loan?
The VA does not need a minimum credit score, but the lenders that offer VA loans do. Although you may occasionally get approved for a VA loan with low credit, many lenders need a credit score of 650 or higher.
If you believe your credit score is close to 620 and you want to purchase a home, you should apply right immediately. The mortgage specialists will work with you to obtain the VA loan preapproval you want so that you may begin house hunting. If you're wondering what a decent credit score is for a non-VA house loan, it's still 620. However, the interest rates on a conventional loan will not be as low as those on a VA loan. Your interest rate will be greater if your credit score is less than 700.
Can I Apply for a VA Loan After Filing for Bankruptcy or Foreclosure?
Bankruptcies and foreclosures do not exclude qualified parties from obtaining VA loans. There are, however, required waiting periods. These are known as seasoning periods. They do not commence until the bankruptcy has been dismissed or the foreclosure has been completed.
Before you may qualify for a VA loan in Chapter 13 or credit counseling program, you must have 12 months of on-time payments. Non-FHA loan foreclosures and Chapter 7 bankruptcies must be at least two years old before applying. Longer wait periods may be required if an FHA loan default occurs. Even when your seasoning time is over, you may need to wait a little longer. The damage to your credit can be severe, and it can take years to repair your credit.
Take the time to focus on these items before applying to increase your chances of acceptance. These actions will also help you improve your credit score. However, keep in mind that bad credit equals higher interest rates. Before you apply, do some research. Investigate the requirements your prospective lenders require for VA loan approval.
When you're concerned about your poor credit score, applying for a VA loan pre-qualification is a smart choice. The procedure can assist you in identifying concerns that must be addressed before proceeding with a property purchase. Gather your certificate of employment, pay stubs, tax returns, and documentation of any additional income. Then, contact the VA-approved lender of your choice.
