The Federal Tax Credits Blog

Even though the VA loan is more lenient than conventional mortgage programs, there are still credit requirements in order to be approved for a VA loan. Most banks require a minimum 620 credit score and 12 months mortgage history with no lates.

Types of imperfections on a credit report that may affect the VA loan approval process:

Payment History Factor

Re-payment history is an important factor in getting approved for a VA loan. Your rental and mortgage payment history signify your ability to pay your housing payment and will better qualify you for a VA loan.

If you lack credit history, provide explanations for any of the following:

Bankruptcy

Bankruptcy does not immediately disqualify a veteran who is applying for a VA loan. If you have had a bankruptcy discharged over 2 years previously to applying for a VA loan it may not be considered. If the bankruptcy discharge was within 1-2 years of applying for a VA loan there are a couple things that are taken into consideration that may still help qualify a veteran:

Foreclosure

Foreclosure is still another issue that will be a deciding factor in qualifying a veteran for a VA loan. The same rules apply as did with bankruptcy, but if the foreclosure is on a VA loan that may change the amount of entitlement available to be used.

Plan ahead and improve credit

When applying for a VA loan, work in advance to reconcile issues on your credit report by paying collection accounts in full or setting up payment plans with judgments against you.

Here are several things you can do:

Close excess credit cards that are open only keeping necessary and low interest rate credit cards open—to much open credit can hurt you qualify for a VA loan

Tax time: When you can claim your 19-year-old as a dependent

Tom Cooney and Crystal Faulkner, of the accounting firm Cooney Faulkner & Stevens, answered questions during a tax chat at Cincinnati.Com, about everything from dependents to deductible fees.

Global Warming Ends & Ice Age Begins Antarctica Ice 2000 to 2009

Related posts

• Sorry, no related posts at this time.