If we are using a VA loan to buy a house, does our credit have to be good?
2010 February 7
We’ve bought 2 houses in the past using VA loans but our credit was ok, it’s not that great now that we’ve joined a debt mgmt group but we are working toward getting it better. Can we still get a VA loan and get a house?
One Response
leave one →
As a former VA underwriter, you can get another house, however, there is no benefit to you getting a THIRD VA mortgage.
They are usually only beneficial for your first home…here is why…
Everytime you reuse your VA eligibility, the funding fee that you have to pay when you originate a new mortgage increases.
I personally would wait until you have a mid-score of 620 and no lates on your account for a minimum of 24 months and pay off any collections/judgements/charge-offs that you have.
Then you should easily qualify for an A-paper loan.