Getting a VA loan with bad credit can seem like a daunting task, but it is possible. Here’s a step-by-step guide:
1. Check Your Credit Score: Before applying for a VA loan, you need to know what your credit score is. Ordering a copy of your credit report will provide you with the information you need.
2. Strengthen Your Credit: You can start increasing your credit score by paying down debt, remaining current on all bills, and avoiding any new credit inquiries.
3. Meet the VA Loan Requirements: VA loans require that borrowers have a minimum credit score of 620 and no late payments within the past 12 months.
4. Find a Lender: Conduct research to find a lender willing to offer VA loans to borrowers with bad credit.
5. Apply: Once you’ve identified a lender, apply for the loan. Be sure to provide all necessary documents, including income verification and proof of assets.
6. Administrative Processing: The VA will process the loan application and let you know if it’s approved or denied.
7. Closing: If approved, you’ll need to sign the loan documents to complete the transaction.
By following these steps, you can increase your chances of being able to get a VA loan with bad credit. Good luck!