I been working for the last 3 years at a large company. I have bad credit but I have a VA loan. Can I still buy a home?
Answers | 3
You should be able to. You say you have a VA loan, does that mean you currently have a VA loan on a home? Or that you are a veteran and have the option for a VA loan? The VA allows for very low scores, I'm sure you will be alright. Find a lender and talk to them, have them run your credit and check your income and they will be able to assist you. That's what I do with my VA clients in your situation.
On the other hand if you're saying you own a home with a VA loan and want to buy another home (2nd home or investment), you'll be more limited in your options outside of VA lending due to your credit. "Bad" credit is vague. Talk with a lender and have your credit checked. It might not be optimal but you might still qualify for a conventional loan.
"Bad credit" is not specific enough to judge whether you can qualify for a VA loan or not. Factors such as when those events took place, whether accounts are charged off or in collections, and whether reasonable explanations exist all factor into a VA loan approval. In addition, many lenders place score restrictions on VA loans, even though VA has no minimum score. For instance, I just closed a VA borrower with a 601 score who'd been declined by several other lenders. He had a short sale, charge offs, etc. The automated VA underwriting portal said his loan was a "refer/eligible, meaning a VA underwriter had to review every detail of it. Most lenders don't do manual underwrites (which is what's required in that case), but I do, so was able to get his family into their new home, So "bad credit" might/might not keep you from obtaining a VA loan. Need more info? I write loans in all states, feel free to contact me through my profile.