The Ultimate Guide for Securing VA Home Loan Bad Credit in Houston


Can you receive a VA house loan with low credit? Many applicants want to know if they may get a VA Home Loan Bad Credit in Houston and under what conditions. There are a few things you should know about VA home loans that will help you better prepare for your application.


FICO score criteria are not imposed or regulated by the VA. Borrowers with poor credit should evaluate their FICO scores and credit histories before applying for a home loan. In general, participating lenders may demand FICO scores in the mid-600 area to offer the best prices and terms.


Technically, the VA program does not include any provisions for negative credit house loans. That does not imply that if you have less-than-perfect credit, you will automatically be denied a house loan; rather, depending on the nature of your credit history, you may be able to qualify for a home loan with a little extra effort.


For starters, everyone’s definition of “bad credit” is different, but borrowers with FICO scores under 600, those who do not have a solid 12 months of on-time payments on all financial obligations at application time, and those who have a foreclosure or bankruptcy on their records that have not been fully discharged will have a difficult time justifying a home loan with the best terms.


How to Improve Your Credit Score?

Borrowers with bad credit should avoid paying for bogus “credit restoration” services from third parties. You may increase your credit score for free by doing a few things on your own. What exactly are these items? Make a minimum of 12 months of on-time payments on ALL financial commitments. If you are concerned about your ability to get accepted for a house loan owing to credit difficulties, don’t bother applying for one without this 12-month payment history. On-time payment history will help you improve your credit ratings, but it will take time.


When it comes to house loan approval, your debt ratio is equally as significant as your credit score. If your monthly financial commitments consume more than 40% of your income, you should try to reduce that proportion long before applying for a new house loan, VA, or not. Improving your FICO ratings may be as simple as lowering your debt ratio.


If your credit card balances are above 50% of your credit limit, you should try to get them below 50% on all cards as soon as feasible. This not only reduces your debt-to-income ratio but also improves your credit score.



If you find a VA lender who is willing to work with you and your situation, be sure to inquire about the FICO score ranges allowed for the loan you want, any compensating factors that may be required if your credit scores require them, and what you can do in the meantime to get a better rate and terms from that lender based on specific credit requirements and financial qualifications.

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