Can I get a VA mortgage with bad credit and what else should I know about VA loans?
Answer:Getting a VA mortgage with bad credit is possible, since the Department of Veterans Affairs only look for a 12-month clean credit history rather than for a particularly good credit score. Your employment status and particular VA loan program may affect your rates much more than your credit score.
Beside low credit requirements, there are several other particularly beneficial features of VA mortgage loans to eligible veterans.
Benefits of VA Mortgages
After you obtain your COE (Certificate Of Eligibility) from your local VA branch or your lender you will entertain all the rights and benefits of VA loans.
The best of all is 100% financing through a VA insured loan without having to pay PMI and at very competitive rates.
VA loans are assumable. Also, if rates go down you are eligible for a mortgage loan streamline refinance.
If you pay off a VA loan completely, your eligibility is automatically restored to use another VA loan. However, you can only hold one VA mortgage loan at a time.
Our advice: Be sure to ask your lender about FHA loans. FHA loans have very competitive interest rates because the loans are insured by the US Federal Government. Even if you have had serious credit problems, such as bankruptcy, it is easier to qualify for an FHA loan than a conventional loan. Also, taking an FIXED rate loan while the interest rates are still low is a smart idea. Check your eligibility here:
| Not at all | Definitely |
Mortgage QnA is not a common forum. We have special rules:
- Post no questions here. To ask a question, click the Ask a Question link
- We will not publish answers that include any form of advertising
- Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
Common misspellings: mortage and morgage