VA Home Loans with Bad Credit Ease the Mortgage Pressure for Military Veterans

For anyone seeking to buy a new home, getting approval on a home loan when low credit scores are a factor can be very difficult. But for former members of the military, seeking VA home loans with bad credit is a viable route towards securing the funds they need.The reasons are pretty clear. Not only is it because, as a loan designed for the military, there is a greater chance of being approved, it is also because getting bad credit home loans through the VA means lower interest rates and more manageable monthly repayments.And besides, in a lending market where getting home loan approval despite bad credit is a challenge, why go elsewhere?What are VA Loans?The story of VA loans lies in the Second World War, when the Department of Veteran Affairs took steps to help returning G.I.s settle back into civilian life. So, a range of loan products were created to accommodate them, with reduced interest rates and more accommodating terms. Today, seeking VA home loans, with bad credit a factor, is a wise move - though the loan is only available to current and former members of the military.The chief advantage with these loans is that the VA guarantees a quarter of the loan, thereby lifting a significant share of the debt from the shoulders of the borrower. So, in seeking a bad credit home loan through the VA, the lender will charge a lower rate of interest. This means lower monthly repayments, and often a shorter loan period.For example, when coming through the VA, a $160,000 home loan becomes a $120,000 loan for the borrower. And when a down payments is made, the total falls further, to perhaps $100,000. This means that home loan approval, despite bad credit, is more possible since the lender has less money at risk.VA Home Loan CriteriaOf course, as easy at it might seem to get approval on VA home loans with bad credit, there are still definite criteria that every applicant has to satisfy. These are quite straightforward in nature, but failure to meet them will mean an applicant will not qualify for it.The most obvious condition is that anyone seeking a bad credit home loan through the VA must have served in the military, so proof of a military record must be provided. A second condition is that the applicant has not defaulted on a loan for a period of 12 months before loan application is made. Any defaults later than 12 months are likely to be ignored.A third condition to seeking home loan approval, despite bad credit, is that the applicant has not filed for bankruptcy within 24 months of the application, while a fourth key condition is that the applicant is in full-time employment, earning sufficient income to cover the repayments.Where to Get VA Home LoanTraditional lenders tend not to accommodate VA home loans with bad credit, but there are some that do. Usually, lenders that specialize in military loans offer the option, so it is worth going through recognized military lenders first. Still, bad credit home loans through the VA will naturally be known by the VA, so contacting them it a logical start.After that, searching online is the best move to make, since online lenders tend to offer a wide range of loans. In any case, it is easier to get home loan approval, despite bad credit, with online lenders, so it is an option that should not be ignored.