Bad Credit?

Veterans with bad credit can qualify for a rate reduction through the VA and be approved just as fast as someone with great credit. The main requirements lenders and the VA will look at for qualifying are the following:

• If you have any collections, judgments or liens against the property they may need to be paid or subordinated.
• There are no minimum credit score requirements a score below 620 could mean a higher rate. Exceptions can be given for certain programs to obtain the best rate even with a credit score in the 500’s.
• Must be current on your mortgage and have no past due balances from missed payments. Past due late fee payments can be paid through the payoff of your loan.
• Most lenders prefer homeowners to not have any late payment in the last 12 months. But some lenders can provide underwriter exceptions and approvals if credit was re-established after late even within 12 months of the late showing.