VA Home Loans with Bad Credit: An Affordable Option for Veterans

For military veterans, returning to civilian life can be difficult. Not only do they need to find employment, but the expenses of life and living have to be met. Finding a new home then, with the specter of bad credit hanging over them, is a challenge, just as it is for the rest of us. Getting VA home loans with bad credit makes the transition that little bit easier.While it is never easy to get personal or home loans with bad credit, VA home loans offer a number of breaks that make buying a home when out of the military much more possible. But, although home loans guaranteed by the VA may give veterans a well-earned boost, there are definite criteria that must be met too.Why VA Loans ExistVA loans have been around since the end of the Second World War, when the US government needed to provide a means by which veterans could get ahead once they had returned to civilian life. The range of loans is extensive, from VA personal loans to VA home loans, with bad credit something that applicants need not worry too much about.The fact that the VA, or the Department of Veteran Affairs, guarantees a quarter of the loan sum means that the risk is considerably lessened. As a result, bad credit VA home loans can be secured at low rates of interest, and with a lower than usual down payment on the property.  For example, a $200,000 home loan guaranteed by the VA translates to a $150,000 independent mortgage, with a deposit of perhaps just $15,000 required to secure it. Therefore, the borrower faces repayments on $135,000, which is far more manageable.Criteria for a VA loanBy approaching the VA, home loans with bad credit are much more attainable for those who have served in the military. This is because of the special allowance that helps to make the whole debt more manageable, with 25% of the loan actually guaranteed by the VA.However, as is the case with every loan, there are certain criteria to meet before bad credit VA home loans can be approved. Three in particular are important. Firstly, the applicant cannot have a history of loan defaults within 12 months of the date of application.Secondly, there must be no bankruptcies filed for a period of 2 years before the application date. Any bankruptcies previous to then may be considered, but are not fatal to any chances.Finally, to stand a chance of getting a home loan guaranteed by the VA, the applicant must prove they are in regular, full-time employment and have a reliable income that can cover the loan repayments.Getting a VA LoanNot every traditional lender, like banks and credit unions, offer VA home loans with bad credit a factor. In fact, they are more commonly available from smaller lenders who specialize in niche markets. However, the most effective way of finding lenders who offer bad credit VA home loans is to use the internet.The variety of online lenders is vast, increasing the possibility of finding a home loan guaranteed by the VA that meets your own particular needs.Of course, it is essential that any prospective lender is checked out thoroughly, so consult the Better Business Bureau to ensure they are reliable. That way, the VA home loan with bad credit will be hassle fee even after it has been approved.