There are various lenders who offer VA home loan bad credit in Houston, you can opt for them to get the loan approval. But there are several things that you need to consider to get approval. Here are the ones –
- Stable income
It is the key factor, which will determine whether you do or don’t qualify for a VA loan program. This program will only back up your loan in case they are assured that your income is able to handle your debt. Twenty four months of consistent employment is considered as proof of a stable income. But in situations where you don’t have 24 months of stable employment, your future income will be evaluated and instead for this.
- Payment history
One of the most crucial factors considered before you qualify for a VA home loan program is your payment history. This program is more lenient than a standard one when considering the criterion. The most crucial thing the lender wants to know is that being a borrower, you will be punctual with each of your monthly payments.
- No outstanding credit
In case you have an outstanding debt that is due for a long time, and you have not paid it off, it may lead to disqualification. You should have no outstanding payments in the past twelve months when you apply for a VA home loan program.
- Huge down payment
A good way to ensure a VA loan approval with a bad credit score is to come with a decent down payment. The higher the down payment amount the less you need to borrow from a lender. And it is needless to say that a lender will be eager to approve a small amount loan with a bad credit score than a huge loan with bad credit. So, you should try to save as much as possible for the down or opt for down payment assistance programs to come with a decent down payment for your loan.
- Shopping for lenders
As there are no particular guidelines for VA loan credit ad down payment requirements, lenders set it in their own way. While some lenders ask for a high credit score and down payment for the loan approval, others may be ready to approve it with more relaxation. And without shopping for lenders, it is not possible for you to understand who is offering what. So, ask for quotes from different lenders, compare it, and then go for the one that will be the best fit for you.
Getting a VA loan with a bad credit score is not difficult for you when you focus on other details too. So, keep the things mentioned above in mind and apply for a VA loan to achieve your dream of homeownership.