Requirements For Bad Credit Arizona VA Loans

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Bad Credit Arizona VA Loans For Veterans

This article was written about obtaining bad credit Arizona VA Loans. On 14th February, 1912, the Grand Canyon state, Arizona, achieved statehood. Arizona was once a part of New Mexico, but it was surrendered to the U.S. in 1848. In 1854, the world discovered copper and until 1950, copper mining was the premier industry of Arizona.

Do you know that Arizona doesn’t observe Daylight Saving Time? Strange, isn’t it? In Arizona’s flag, you can see a star that’s colored like copper. This copper star acknowledges the role of Arizona as the largest producer of copper in America. That’s truly amazing!

That was some fun talk about the state of Arizona, now let’s move to business: the real estate market of Arizona. In Arizona, the median home value according to the latest statistics is $233,400. The home values in the state have increased by 6.7 over the last year and experts predict that they’ll rise 2.5 percent within 2018.

For homes that are currently listed within Arizona, the median price stands at $272,000 while for homes that are sold, the median price is $237,400. In the capital city of Arizona, there aren’t many homes available for sale. Buyers are worried about the real estate condition of Arizona and are asking why there aren’t enough homes available for sale? As there aren’t many homes for sale, the prices are going up and we’ll continue to witness more price gains this year.

Where to Apply For Bad Credit Arizona VA Loans?

The real market of Arizona clearly shows that buyers looking for new homes don’t really have much to choose from. And having a bad credit in such circumstances can cut down your options even more. However, there’s some good news for veterans! There is one loan option that’s specifically made for veterans to help them get a loan with even with a low credit score. What that, you ask? The VA home loans.

Arizona VA Home Loans

Private lenders like mortgage companies or banks in Arizona now offer VA guaranteed home loans to veterans with low credit score that meet the eligibility criteria. With VA loans, veterans can purchase a home for their personal occupancy. The guarantee protects the lender against potential loss in case you aren’t able to make the repayment of the loan.

How to Obtain an Arizona VA Home Loan?

The steps of obtaining a bad credit Arizona VA loans loan are simple. Here’s what you need to do:

  • First, select your home and then discuss the requirements of purchase with your selling agent or the seller. Sign your purchase contract that’s conditioned on your VA loan’s approval.
  • Choose a lender and provide them ‘Certificate of Eligibility’. Complete the loan application.
  • All income and credit information will then be developed by your lender. They’ll request Veteran Affairs (VA) to send a licensed appraiser for determining the value for your property. Once the licensed appraiser is done, you’ll be issued a ‘Certificate of Reasonable Value’.
  • Once all the above steps are clear, your lender will tell you the final decision about the loan. If your credit, income and the value established by appraiser are acceptable, you’ll be given the loan.
  • Then you’ll be required to attend the closing of the loan. The lender will explain all the requirements and terms of the bad credit Arizona VA loans and will tell you how you’ll be paying the payments on a monthly basis. You’ll also have to sign the mortgage, note and other papers.
  • After that, the lender will send the loan to Veteran Affairs for guaranty.

Benefits of a VA Home Loan

Few of the major benefits of an Arizona VA home loan are:

  • Equal opportunity
  • Right to prepay with no penalties.
  • VA Assistance provided to all veteran borrowers who are struggling because of financial difficulty.
  • Interest rates are negotiable
  • Costs of closing are similar to other financing options
  • Down payments are mostly not required
  • Buyers is informed of home’s reasonable value
  • Assumable mortgage

VA Loan and Bankruptcy

The fact that you or/and your spouse have received an adjudication of bankruptcy doesn’t mean that you cannot get a VA loan. In case of bankruptcy, these rules apply:

  • The bankruptcy can be disregarded if it was discharged > 2 years ago.
  • If you or/and your spouse were discharged off bankruptcy only a few months ago, it’s not possible to establish if you or/and your spouse are credit risk-free.

If only 1 or 2 years have passed since you were discharged of bankruptcy, it probably cannot be determined that you or/and your spouse are credit risk-free unless:

  • Satisfactory credit has been reestablished by you or/and your spouse
  • The circumstances that caused bankruptcy were well beyond your or/and your spouse’s control (medical bills, unemployment, etc.)

What to do if you don’t Quality for a VA Home Loan?

Down Payment

Sometimes if you have a very poor credit rating history, lenders can reject you for a bad credit Arizona VA Loans. A credit score is taken into consideration because lender often provides VA loan with zero down payment. If you do not qualify for a traditional zero-down VA loan because of a poor credit rating, you should consider putting more money down. If you can put 20% down payment, the lender might overlook the bad credit score to approve you the VA loan. However, there’s a catch: you’ll be charged higher fees and interest rates.

Rebuild Credit

If you cannot put a down payment of 20%, the only option left is to rebuild your credit to qualify for the VA loan. Home lenders will normally require a credit score of 620 for VA loan. Pay down your credit cards, open a secured loan and improve your payment history to rebuild your credit score and qualify for the VA loan. Need help in rebuilding credit history or to qualify for an Arizona VA home loan, contact Loan Consultants for assistance!

If you have been denied a home loan or have any questions about real estate or mortgage please contact the author, Matt Herbolich, MBA, JD, LLM. Mr Herbolich works when you work, so feel free to contact him any time

Matthew Herbolich
Matthew Herbolich
Mr. Herbolich is a Senior Loan Officer at USA Mortgage, a division of DAS Acquisition Company, LLC NMLS 227262. He is an expert not only in lending but multiple facets of real estate, particularly the title industry. Matt Herbolich trains his fellow loan officers on title industry topics, real estate investing, and countless mortgage guidelines. Have any questions? Call at 888-900-1020 or send email to: mherbolich@usa-mortgage.com

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