Securing VA Loans for Bad Credit Scores
The best starting point when looking to secure a VA loan is a good credit score. This however begs quite a number of questions including what exactly defines a good credit score? What is the minimum credit score required for a VA loan? What comparison is there between the credit requirements for the VA loans and other available mortgage options?
One of the biggest advantages that have been known to come with the VA loan program is lenient credit requirements. It is actually possible for one to get VA loans for bad credit scores. A potential borrower for a VA loan does not need to have a credit report that is fully free of any blemishes or an elite score. The main aim of the VA loan program is to be able to provide as many military potential borrowers as possible with the chance to obtain an accessible and simple mortgage.
It is imperative that you get a clear understanding of the role that the VA plays in the whole process of the VA loans. The VA is the overall overseer of this program and acts as a guarantor for a certain portion of the entire loan in case default happens. The VA itself however does not give any of the loans and it also does not play the role of enforcing any of the credit score minimums provided. These roles are strictly left to the individual lender that will be giving the VA loan.
A good number of the VA lenders do not make use of credit score benchmarks. Normally, when a lender places a certain credit score benchmark, any applicant who has not met the benchmark does not qualify for the loan. The minimum benchmark that is used varies from one lender to the next. However a good number of the approved lenders for the VA loans in the market today have placed a benchmark of a minimum of 620.
After all is said and done, the good news is that it is possible to get VA loans for bad credit scores. As it was said before, the credit requirements placed on these loans are not very stringent and this flexibility works to benefit a very good number of potential borrowers. The fact that the Department of Veteran Affairs works to guarantee a certain portion of these loans goes a long way in helping to make it much easier for potential borrowers to access these loans.