| Even though the VA loan is more lenient than | | | | bankruptcy discharged over 2 years previously to |
| conventional mortgage programs, there are still credit | | | | applying for a V A loan it may not be considered. If the |
| requirements in order to be approved for a VAloan. | | | | bankruptcy discharge was within 1-2 years of applying |
| Most banks require a minimum 620 credit score and 12 | | | | for a V A loan there are a couple things that are |
| months mortgage history with no lates. | | | | taken into consideration that may still help qualify a |
| Types of imperfections on a credit report that may | | | | veteran: |
| affect the VAloan approval process:o Collectionso | | | | 1. If you have obtained credit following the bankruptcy |
| Late paymentso Judgments | | | | and made satisfactory timely payments |
| Payment History Factor | | | | 2. If reasons for Bankruptcy were above and beyond |
| Re-payment history is an important factor in getting | | | | the control of the veteran-Loss of job, medical bills, |
| approved for a VAloan. Your rental and mortgage | | | | divorce, loss of a business etc. |
| payment history signify your ability to pay your housing | | | | Foreclosure |
| payment and will better qualify you for a VA loan. | | | | Foreclosure is still another issue that will be a deciding |
| If you lack credit history, provide explanations for any | | | | factor in qualifying a veteran for a VA loan. The same |
| of the following:o If you are a veteran who has been | | | | rules apply as did with bankruptcy, but if the |
| recently discharged and have not been able to | | | | foreclosure is on a VA loan that may change the |
| establish credito Use cash instead of credit on a | | | | amount of entitlement available to be used. |
| regular basis for bill paying and purchaseso Veteran | | | | Plan ahead and improve credit |
| has not used credit since reconciliation of bankruptcy | | | | When applying for a VA loan, work in advance to |
| and judgments | | | | reconcile issues on your credit report by paying |
| Bankruptcy | | | | collection accounts in full or setting up payment plans |
| Bankruptcy does not immediately disqualify a veteran | | | | with judgments against you. |
| who is applying for a V A loan. If you have had a | | | | |