I have a question about buying a home for the first time. I'm a vet rated at 70% and my wife is active duty Air Force. We're looking to buy or build a house in San Antonio within the next year or two. Neither one of our credit is stellar. My question is what would be the process and how hard would it be for us to purchase a house using our VA Loan with not so good credit? Thanks in advance.
Depends on what your definition of not so good credit is. In todays market, you have to have at least a 600 credit score for getting a VA loan. Even though VA doesn't care what your credit score is, lenders can't get the low fico score loans secured on the bond market. The single best thing you can do is to apply for a loan with a VA approved lender and let the loan officer tell you what needs to happen in order to get you approved.
Originally posted by MortgageGuru: Depends on what your definition of not so good credit is. In todays market, you have to have at least a 600 credit score for getting a VA loan. Even though VA doesn't care what your credit score is, lenders can't get the low fico score loans secured on the bond market. The single best thing you can do is to apply for a loan with a VA approved lender and let the loan officer tell you what needs to happen in order to get you approved.
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Yea currently our credit score is in the mid 500s. I don't know how quick and how much your credit score rises once all your accounts are paid. We have about a year before we will actually look to buy a house.
Make sure ALL collection accounts have zero balances and you have some open tradleines with at no lates for a 12 month period. Having everything paid off and closed out on your credit report will result in no credit scores at all.
