Home loans guaranteed by the U.S. Department of Veterans Affairs (VA) will help veterans who have credit challenges. Eligible veterans can apply for VA loans. Developed from the Fair Isaac Corporation, FICO scores are based on proprietary data to ascertain an applicant’s risk of default. You can still get a VA mortgage with a low FICO score and credit rating brought on by a health illness, job loss or extenuating circumstance. A reestablished credit report which reflects immediate payments to your creditors for 12 months or longer may raise your chances of qualifying for a VA mortgage.
Compose a letter to explain issues like poor credit or erroneous information that’s caused one to have a low FICO score. Be certain to mention the activities you have taken to correct your own credit profile. Attach proof of payment arrangements which you’ve promised to maintain and receipts for debts which were satisfied. Submit your explanation letter to your loan .
Other VA lenders as well as contact Lending Tree on the internet. Ask for rate quotes which are based in your FICO score.
Collect your documents. To get a VA loan you will require a certificate of eligibility, current pay stubs, tax returns and bank statements. You also need to submit a copy of your sales contract if you’re buying a home.
Apply for a VA loan. Your chosen VA lender will require that you complete financing package and federal disclosure forms. Return your documents and attach the letter which explains your low FICO score.