The veterans in the U.S. are entitled to some privileges. One among them is buying a house without down payment. There are about twenty-five million veterans who are eligible for housing loans under the Servicemen's Readjustment Act, also referred to as the GI Bill. Veterans who qualify, the VA guarantees 25 percent of home loan. Veterans with bad credit can also get housing loans under special circumstances.
Criteria for getting VA loan with bad credit:
The Servicemen's Readjustment Act of 1944 has made available funds for housing to veterans. The veterans can avail home loans without making down payment. Veterans with a bad credit history can also get VA loans under special circumstances. But one needs to fulfill the eligibility criteria to avail the loans. The loans are called as guaranteed loans. The specific conditions are:
• If your transactions are without default in the preceding 12 months. The lender also takes into account your transactions which was bad but looks good in the recent past.
• Veterans with disability may be sanctioned VA loan in spite of bad credit
• A lapse of two years from a Chapter 7 bankruptcy and holding proof to show that you are financially sound enough to repay the loan.
• A person with Chapter 13 bankruptcy but who is making prompt payments to the court in the preceding 12 months.
• The aspirant for loan should give fool proof documents to show that he is financially strong and holds a gainful employment or a steady income.
Strive to improve your credit score before you apply for VA loans and be prompt in clearing the repayments of recent time. That will facilitate you getting a VA loan with ease.
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