One very frequent question has to do with bad credit and VA loan qualifying. Though VA guidelines state no credit score minimum for qualifying for a VA loan, a potential VA borrower with bad credit or even a bankruptcy can be turned down.
VA-approved lenders consider debt-to-income ratios, residual incomes and loan histories, as well as complete credit histories and FICO scores, to determine whether an applicant is a satisfactory credit risk.
Bad credit may require some repair before a VA loan can be approved. Sometimes this is a matter of paying off a few credit cards. Other times it can mean waiting the two years required for the black cloud of bankruptcy to blow over.
Applicants from VA borrowers with bad credit or bankruptcy histories are considered for VA-backed loans on a case-by-case basis.
VA-eligible borrowers who need more information about qualifying for military mortgages with bad credit should contact an experienced loan professional.