VA Home Loan Bad Credit in Fairfax County

What Are The Things You Need to Know about VA Home Loan Bad Credit in Fairfax County, VA?


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A solid credit score might be a crucial factor in obtaining a VA loan. The VA would not only grant permission but would also schedule an assessment and determine the VA interest rate for the loan. Your credit score isn’t the only factor they consider when determining whether you qualify for a VA loan. We consider your whole financial situation since we are dedicated to assisting veterans, active-duty military members, and their families in obtaining VA loans.

However, certified VA lenders handle the whole approval procedure. The VA does not authorize loans, but it does publish standards that lenders must follow if they want to get the VA loan guarantee. Everything is up to the lender, from debt ratios to work histories. That, of course, involves the borrower’s creditworthiness. So, what do the credit criteria for a VA Home Loan Bad Credit in Fairfax County, VA look like?

Foreclosures, Bankruptcies, and VA Loans

Although a bankruptcy or foreclosure might remain on your credit record for seven years, you do not have to wait that long to claim your VA home loan benefit. In fact, if you have a foreclosure, you may be eligible if more than two years have gone since the foreclosure date. If you utilized your VA entitlement and it was implicated in the foreclosure, you must redeem the amount of the entitlement involved in the foreclosure.

VA loans allow for a previous bankruptcy as long as two years have gone after the discharge date and credit has been reestablished. This is quite crucial. If there has been even one late payment in the last two years, a VA lender will have a tough time obtaining a VA loan. In addition to your utility bills and cell phone bill, the most critical payment to stay current is your rent. As “alternative” credit, certain VA lenders may accept such payments as evidence of timely payment. A bankruptcy or foreclosure will lower your credit score, but qualified veterans can repair the harm sooner rather than later. It is carried out on a daily basis.

If you’re re-establishing your credit after a bankruptcy or foreclosure, or just don’t know if your credit is good enough for a loan, the easiest way to find out is to use our VA loan finder to check if you qualify. If this is the case, the lender would gladly answer your questions and walk you through the procedure.

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