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VA home loan questions and answers

Family playing together9. Can 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

10. 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.

11. 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.

12. 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.

13. 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

14. 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.

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


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

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

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

Second homes are not eligible for a VA mortgage.

18. Can a VA loan be used to refinance?


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


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


21. 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

22. 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

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