Author Box
Articles Categories
All Categories
Articles Resources

VA Home Loans With Bad Credit: Factors to Keep in Mind

March 14, 2012 | Comments: 0 | Views: 149

It might seem that getting a VA home loan with bad credit is easy when a military veteran wants to buy a new home. But there are some aspects to these loans that need to be taken into account. Not least is the fact that there is criteria that need to be met.

As part of the 1944 Serviceman's Readjustment Act (also known as the GI Bill), war veterans can qualify for home loans guaranteed by the VA and purchase their own homes. All that is needed from them is a minimal down payment, and a commitment to repaying the loan on schedule - just like with any loan.

For that reason, getting VA home loan approval despite bad credit is easy if the applicant can tick all of the right boxes.

VA Guarantee

Seeking a loan, not just a VA home loan, with bad credit can be a challenge, with many traditional lenders preferring to stay clear of the perceived risks involved. But the significant aspect of VA loans is that they are partly guaranteed.

As a result, the pressure on the borrower to meet to the expectations of lenders is lessened. A home loan guaranteed by the VA basically means that the need to come up with a large down payment is removed, while the interest rate is lowered to reflect the security that such a guarantee provides.

However, the guarantee only covers 25% of the value of the home, so funds are limited. Getting VA home loan approval despite bad credit might be easier, but it does not provide enough to buy a large mansion. They are, after all, designed to help war veterans get back on their feet by having a home of their own.

Prepare Properly

It is important to understand that simply having been in the military is no guarantee that a VA home loan, with bad credit a factor or not, will be secured. This is why properly preparing your application is important.

The most pressing matter is the bad credit rating. This rating can be drastically improved by taking out a series of small short-term loans, and repaying them promptly, thus increasing the score. Even the terms can be improved if the credit score is higher.

Another choice is to take out a consolidating loan to take control of the various sources of debt. Lenders see this as a proactive move to handle existing debt, and so are more comfortable granting VA home loan approval despite bad credit.

The Qualifications Required

Of course, like any loan, in order to qualify for a VA home loan with bad credit, it is necessary to satisfy some criteria. The basic set to meet relates to identification, confirmation of military rank, age and even citizenship. But there are other pieces of information needed too.

First of all, there needs to be no history of defaulting on loans for a period of 12 months prior to making the application. Even with a home loan with bad credit guaranteed by the VA, lenders need to be sure who they are lending money to.

Secondly, for two years prior to the application the applicant cannot have had a bankruptcy case filed. Bankruptcies are serious matters, so even if one was files 5 years prior, lenders will take interest in them. But they are deemed to be too recent if filed within a period of two years.

Finally, to get VA home loan approval despite bad credit it is necessary for an applicant to prove they are fully employed, with a reliable income. Like any other home loan, repayments can stretch over decades, so financial security is needed.

Mary Wise is a personal loan consultant who has been associated with Guaranteed Bad Credit Personal Loans and has more than thirty years of experience in finances. She has helped a lot of people to obtain Bad Credit Home Equity Loan, and many other products regardless of their credit situation. If you want to learn more about Personal Loans you can visit her at BadCreditLoanServices.com

Source: EzineArticles
Was this Helpful ?

 
0
 
0
 
Rate this Article
 vote(s)
Feedback
Print
Re-Publish

Article Tags:

Bad Credit Military Loan

,

No Credit Check Military Loan

,

Guaranteed Military Loan

,

Bad Credit Va Loan

The 3 Month Payday Loans is most suitable options for the people who do not possess assets. There are a variety of loan options for the people who are willing to pledge assets against the cash

By: Cameron white l Finance > Personal Finance l July 09, 2013 lViews: 561

For many people, bankruptcy can make their world fall apart. The apparent loss of reputation coupled with the inability to take financial decisions can deter anyone from thinking clearly. But all is

By: noragwilt l Finance > Bankruptcy Lawyers l November 18, 2012 lViews: 304

If you are availing payday loans with monthly payments, it is easy for you to obtain quick money from online lending companies.By getting the best deals of loan, you can save money in terms of

By: Malen Cheks l Finance > Loans l November 16, 2012 lViews: 289

Loans online have become the popular source of income and people can make smart decision of taking it.Now, don’t go anywhere and sit in your home silently. Such deals would bring you money without

By: Marsh Jone l Finance > Loans l November 13, 2012 lViews: 288

Loans for the unemployed would let you feel comfortable with your unstable conditions due to jobless period.If you compare the rates of a few lenders, you would definitely get the suitable lender to

By: kelse roy l Finance > Loans l November 13, 2012 lViews: 467

By taking cash advance for bad credit, it is easy for you to improve your credit status. This loan is useful to relieve financial stress. This loan is totally free from credit verification and

By: Honard Nork l Finance > Loans l November 09, 2012 lViews: 301

Military members are offered an additional lending tool known as a military loan. These loans are offered in amounts up to $20,000 and even those with bad credit can qualify under certain conditions.

By: Joycelyn Crawfordl Finance > VA Loansl July 02, 2012 lViews: 139

Members of the military sometimes need to access funds quickly too, just as we do. With the availability of military loans with no credit checks, they have the capacity to do so, very quickly.

By: Mark Venitel Finance > VA Loansl June 29, 2012 lViews: 144

Securing VA home loans with bad credit may seem difficult, but it is not. Like all loans, as long as the criteria is met and the right lender is found, there should be few problems.

By: Donna N Hammondl Finance > VA Loansl June 27, 2012 lViews: 178

When it comes to military loans requiring no credit checks, there are positives and negatives to them. But the positives are hard to ignore, with both short-term and long-term advantages to be

By: Hilary Bowmanl Finance > VA Loansl June 27, 2012 lViews: 166

Veterans and active duty military personnel who want to buy a home have the option of VA home loans. With bad credit, getting a VA home loan can mean the difference between acceptance and rejection.

By: Mark Venitel Finance > VA Loansl June 23, 2012 lViews: 179

Not everyone can qualify for no credit check military loans, but for those that do, approval can be virtually immediate. However, it is important to know there are factors to consider.

By: Mary Wisel Finance > VA Loansl June 21, 2012 lViews: 179

The fact that home loans for people with bad credit are available means that buying a new home is still possible for everyone. But there are conditions that must be considered before seeking one.

By: Mary Wisel Real Estate > Mortgage Refinancel June 29, 2012 lViews: 143

Approvals on payday loans with bad credit are amongst the most commonly secured loans on the market. In fact, they are much more simply approved that many expect and offer a genuine break to

By: Mary Wisel Finance > PayDay Loansl June 27, 2012 lViews: 185

Not everyone can qualify for no credit check military loans, but for those that do, approval can be virtually immediate. However, it is important to know there are factors to consider.

By: Mary Wisel Finance > VA Loansl June 21, 2012 lViews: 179

Approvals of mortgage loans for people with bad credit is more common than one might expect. But when the specifics are examined there is no great mystery why. Preparation is the key factor.

By: Mary Wisel Real Estate > Mortgage Refinancel June 10, 2012 lViews: 157

Getting money fast is hard when you have bad credit. That is why using a no credit check loan to meet those needs is really a good choice. This article will explain the details about no credit check

By: Mary Wisel Finance > Personal Loansl April 25, 2012 lViews: 179

Convincing lenders to approve a $25,000 unsecured loan is not a simple case of filling out the application form. But there are some steps to take that will improve the chances of success.

By: Mary Wisel Finance > Unsecured Loansl April 20, 2012 lViews: 176

Discuss this Article

comments powered by Disqus