How to Land a VA Loan without any Hassle? Here are a Few Things to Know

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Did you know the minimum credit score for a VA mortgage program is 550? VA loans have recently emerged as the most powerful tool in the housing market. The sheer flexibility it brings – many borrowers find the zero down payments widely helpful. Moreover, the program does not offer a one-time benefit. When veterans and active duty servicemen do have a good credit score, they are likely to face trouble. It is a smart choice to improve FICO scores and gain all the available benefits.

The VA mortgages make a better option than conventional loans. Furthermore, the Department of Veterans Affairs insures the program to help the borrowers and lenders at the same time. The lenders can provide less-stringent guidelines because the loan is insured. VA loans work the same way as the other non-traditional mortgages. However, there is one thing – the program is exclusive to eligible servicemen.

In case you are wondering whether you can find a VA loan against your bad credit, here are a few things you should remember.

Have you managed your debt?

You should resist the temptation of making big purchases until closing the mortgage. So, get rid of the ideas of opening new credits and moving your balances. This one simple act can hurt the FICO scores. If the balances are low (30% of the credit limit), you are doing a good job. Focus on paying down the debt. The credit length is a huge factor in maintaining the score. If you close the previous cards, it can leave a negative influence on the score.

Have you checked your credit report?

If you truly want to figure out the present credit situation, check the status of all the accounts. Inaccuracies can be fatal, and you should fix them before making a purchase. Online credit monitoring companies do not always show an accurate result. If you are blindly following third-party agencies, you could lose more. It is better if you check your credit report manually. If you think you have low credit scores, it might be the very opposite of it.

Have you fixed the errors?

Credit reports often contain transactions you never made. Make sure the credit report does not carry credit cards that should not be there in the first place. Declare what is not yours because finding out unidentified accounts is not an uncommon occurrence. You need to make a call to the credit agency and report the issues. When there is something wrong with the report, you can call all three credit agencies. The process can be time-consuming, so you should take action as early as possible.

Now, you can apply with your bad credit. Of course, you cannot rule out these basic tips for the best loan experience. VA home loan credit score 550 in Houston have competitive rates and bring a huge relief to financially challenged buyers. So, you should find a VA-approved lender and get help with the loan application.

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