VA Home Loans With Bad Credit: Guaranteed Affordability Despite Low Credit Scores

The financial pressures of everyday life are as real for former military personnel as it is for the rest of us. In fact, it is arguably more so given that retirement from military service creates a need for employment and an extended period of adjustment. Buying a new home seems almost impossible under these conditions, but thankfully the availability of VA home loans with bad credit is a major help.After years in the security of the military, life as a civilian is a very different prospect. That is why millions of former military personnel turn to the Department of Veteran Affairs (known simply as the VA) for financial support, especially when seeking loan approval. These are not handouts, but provide a mechanism that places more affordable loans at the disposal of these individuals.In fact, with VA home loans the costs of buying a home are reduced dramatically, with lower interest rates and no need for a down payment.So What Exactly Are VA Loans?The VA was established at the end of World War II for the specific purpose of aiding returning American soldiers as they adjusted to civilian life. The issues that many ex-GIs faced included financial problems, with a need to find employment and a place to live with little financial credibility. Offering VA home loans with bad credit was a way to help them.Over the years, the full range of financial packages have expanded considerably to include VA personal loans as well as home loans. And with the VA guaranteeing 25% of the sum borrowed, the task of seeking loan approval is improved by quite a stretch.Basically, if a former military member wants to buy a home that costs $200,000, the VA home loan guarantees $50,000 of the sum. So, only $150,000 of the mortgage is considered at risk by the lender. With reduced risk comes reduced interest rates, helping to make the repayments more affordable.How to QualifyThe rules associated with applying for a VA home loan with bad credit are pretty strict, but qualifying is pretty straightforward. These loans are only open to former members of the military, and a proven military record must be provided detailing the former rank and deployment history of the applicant.There are also rules relating to financial backgrounds. While bad credit has no real influence, it is important that applicants have not defaulted on any loans within 12 months prior to the application date. There should also be no cases of bankruptcy for at least 2 years. Once these conditions are confirmed, then the process of seeking loan approval can begin.Of course, it is also important for an applicant to show that they have a reliable source of income before applying for a VA home loan. This is a basic condition as, like all loans, the applicant needs to be able to make repayments.Where to Get a VA Loan?As with practically all loan deals, the best place to find a VA home loan with bad credit is online. It is here that the best terms and lowest interest rates are to be found, but it is important not to rush into anything. Online lenders tend to specialize in the bad credit borrower markets, but there are a lot to take in, especially on comparison sites, so be sure to read the small print.Getting a low interest mortgage is always a highly attractive proposition, but late fees will still apply so be sure what is being offered before seeking loan approval from them. Also, check out the reputation of any unfamiliar online lenders, either on the Better Business Bureau site or on the Verify1st site. Only then can a truly beneficial VA home loan deal be secured.