VA home loan questions and answers 10 - 22 | Credit score

Family playing togetherCan a veteran get a VA loan with bad credit?

The VA home loan is available through VA approved lenders. The Veteran's Administration does not require a minimum credit score. The VA allows the lender to decide whether the credit history is acceptable or not. Here's what the VA says about (bad) credit:

The applicant’s past repayment practices on obligations are the best indicator of his or her willingness to repay future obligations. Emphasis should be on the applicant’s overall payment patterns rather than isolated occurrences of unsatisfactory repayment. Determine whether the applicant (and spouse, if applicable) is a satisfactory credit risk based on a careful analysis of the credit report and other credit data.

Adverse Data
Reestablished Credit: In circumstances not involving bankruptcy, satisfactory credit is generally considered to be reestablished after the veteran, or veteran and spouse, have made satisfactory payments for 12 months after the date the last derogatory credit item was satisfied. For example, assume a credit report reveals several unpaid collections, including some which have been outstanding for many years. Once the borrower has satisfied the obligations, and then makes timely payments on subsequent obligations for at least 12 months, satisfactory credit is reestablished. Source: VA Pamphlet 26 - 7, Revised Chapter 4: Credit Underwriting

Can a lender charge points on a VA loan?

VA home loan lenders are permitted to charge mortgage points on a VA loan. Mortgage points can be paid to reduce the annual interest rate. VA lenders are also permitted to charge an origination point.

Can a national guard member get a VA loan?

Yes. National guard members are able to apply for a VA loan, provided the vet meets the eligibility requirements.

Can a VA loan be denied?

A VA loan can be denied. The veteran must meet the usual mortgage requirements for approval. Length of employment, credit quality, and income are all considered with the mortgage application.

Can a VA loan be for 15 years?

The Veteran's Administration permits 15 year loan terms. See today's VA 15 year interest rates

Can a VA loan be used for a duplex?

Unfortunately, the VA home loan cannot be used for the purchase of a duplex. Single family, owner occupied homes only.

Can a VA loan be used for a rental property?

No

Can a VA loan be used for new construction?

The VA home loan can be used for the construction of a single family home.

Can a VA loan be used on a second home?

Second homes are not eligible for a VA mortgage.

Can a VA loan be used to refinance?

Yes!


Can a buyer pay closing costs on VA loan?

Yes

Can closing costs be added to a VA loan?

No

Can I get a jumbo VA loan?

The VA does not limit the loan size, lenders do. However, the lender may require a down payment if the guarantee percentage is less than 5%. See VA loan calculator

Can I get a VA loan after bankruptcy?

Here's what the VA says about bankruptcy:

The fact that a bankruptcy exists in an applicant’s (or spouse’s) credit history does not in itself disqualify the loan. Develop complete information on the facts and circumstances of the bankruptcy. Consider the reasons for the bankruptcy and the type of bankruptcy filing. Bankruptcy Filed Under the Straight Liquidation and Discharge Provisions of the Bankruptcy Law. You may disregard a bankruptcy discharged more than 2 years ago. Source: VA Pamphlet 26 - 7, Revised Chapter 4: Credit Underwriting




1. What is a VA home loan?

2. Are all VA loans no money down?

3. Are national guard members eligible for VA loans?

4. Are there closing costs associated with a VA loan?

5. Are there points on a VA loan?

6. Are there VA loan limits?

7. Are VA loan rates the same as conventional rates?

8. Are VA loan rates the same at all banks?

9. Can a buyer pay for a termite inspection on a VA loan?

 10. Can a veteran get a VA loan with bad credit?

11. Can a lender charge points on a VA loan?

12. Can a national guard member get a VA loan? Can a VA loan be denied?

13. Can a VA loan be for 15 years?

14. Can a VA loan be used for a duplex?

15. Can a VA loan be used for a rental property

16. Can a VA loan be used for new construction?

17. Can a VA loan be used on a second home?

18. Can a VA loan be used to refinance?

18. Can a buyer pay closing costs on VA loan?

20. Can closing costs be added to a VA loan?

21. Can I get a jumbo VA loan?

22. Can I get a VA loan after bankruptcy?
23. Can a VA loan be used for a vacation home?

24. Can a VA loan be used to build a house?

25. Can I get a VA loan if I had a foreclosure?

26. Can the seller pay all closing costs on a VA loan?

27. Can the VA funding fee be rolled into the loan?

28. Do I have to escrow my property taxes with a VA loan?

29. Do I have to have a down payment with a VA loan?

30. Do I have to pay mortgage insurance on a VA loan?

31. How is the VA funding fee calculated?

32. Do I need a home inspection for a VA loan?

33. Do VA loans have a lower interest rate?

34. Do VA loans have closing costs?

35. Do VA loans have prepayment penalties?

36. Do VA loans require an appraisal?

37. Does a seller have to pay closing costs on a VA loan?

38. Do VA loans require escrow?

39. Does VA have loan limits?

40. How does a VA jumbo loan work?

41. How much can I afford for a VA home loan?

42. How much is pmi on a VA loan?