In this blog, we will discuss and cover qualifying for VA loans for bad credit. If there is something that takes care of our country’s veterans and is worth noting on Veterans Day is the great home buying option of VA loans. Our brave men and women in uniform deserve the reward to purchase a home with no down payment, no maximum loan limit, and with less than perfect credit at great competitive mortgage rates with a VA loan.
VA loans are available to eligible active military veterans, National Guard Members, and eligible surviving spouses. As long as the potential borrower has a Certificate of Eligibility or COE, borrowers are free to take advantage of the most lenient mortgage loan that is offered. Eligible veterans can enjoy the fact that VA loans have had the lowest average rate than any other mortgage loan program.
The U.S. government has made the agency mortgage guidelines lenient for our active and/or retired members of the U.S. Armed Services. Eligible veterans can qualify for VA loans with bad credit, no minimum credit scores, no maximum debt to income ratio caps, and outstanding collections and/or charged-off accounts. You only need to wait a two year waiting period after bankruptcy and/or foreclosure to qualify for a VA loan.
In general, mortgage rates are lower when compared to rates of FHA and Conventional loans. VA loans mortgage underwriting is normally more flexible than that of other mortgages. The costs are much lower as well when compared to their counterparts. VA loans can close in the same amount of time as an FHA or Conventional loan.
The belief that there is more hassle involved in VA loans is simply not true. With this being said, it might be in your best interest if you are a veteran to see if you can get a VA loan. The team at Loan Consultants are experts in originating, processing, underwriting, and funding VA loans for bad credit with no lender overlays.
As mentioned earlier, it is worth noting our country takes care of its veterans. VA loans were created by the Congress of the United States to reward our brave men and women in uniform. There is no other loan program like VA loans where there is no down payment required.
There is no annual mortgage insurance, no maximum loan limit, no minimum credit score requirements, and no maximum debt to income ratio cap with VA loans for bad credit. The only fee and cost active and/or retired members of the U.S. Military have to worry about paying is a one-time VA funding fee. The VA funding fee can be rolled into the balance of the VA loan.
VA benefit is that of one of the most affordable mortgage offers around through a VA loan program. With the VA loan program, you can obtain a mortgage with no money down and 100% financing available. This holds true as long as you are eligible for VA benefits with a valid certificate of eligibility (COE), you can qualify for a VA mortgage.
Now VA loans have a funding fee for their loans,. This holds true even if you have 100% financing, you may need to pay this funding fee. However, under special circumstances such as obtaining a disability while serving our country, you can get the funding fee waived as well. There aren’t any minimum guidelines for minimum FICO credit scores needed, however, lenders may have their own Lender Overlays which could put a minimum to the credit score and debt to income ratio required for VA loans.
As you can see, VA loans for bad credit are a great way for veterans to obtain financing for their home purchases. A government-insured VA loan is a great way that this country takes care of its veterans. It is also a great resource for veterans to purchase a home. There is no other loan out there that can offer the flexibility and minimum requirements and truly offer a no money down approach to lending.
The team at Loan Consultants looks forward to working with veterans to make sure we can reward them with the house of their dreams. VA loans have one of the easiest and most lenient mortgage agency guidelines than any other mortgage loan program. Homebuyers can have less than perfect credit with outstanding collections and charged-off accounts and qualify for VA loans for bad credit.