Bad Credit VA Mortgage Loans

This video will tell you all about Bad credit va mortgage loans.
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VA Still Paying Millions in GI Bill Tuition to Ineligible For-Profit Schools: Watchdog

The VA Office of Inspector General (OIG) has issued the latest in a series of five audits charging that the Department of Veterans Affairs' oversight failures could potentially lead to $2.3 billion in GI Bill money going to ineligible for-profit schools over the next five years... Read more

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Medicaid cuts would hurt military families, too, advocates say.

Retired Navy Lt. Cmdr. Anthony Putney recalls often waiting for months before his severely disabled daughter Lily could be enrolled in Medicaid after they made the military move from state to state. That meant no health coverage for... Read More

Bad Credit VA Mortgage Loans

For nearly 75 years, the U.S Department of Veterans Affairs created a loan program (VA) that gives veterans the chance to purchase a home with more favorable interest rates than those charged to conventional borrowers. Veterans and spouses qualified for a VA home loan must relocate to the home they are looking to purchase. They must have enough income in order to make monthly payments. However, what if service personnel is looking to take a VA home loan with a bad credit? What if they have no credit history at all? It's all easy, we offer bad credit VA mortgage loans.

When talking of the VA loan program, there’s one thing that’s certain, among the various advantages of the VA loan program, the Department of Veterans Affairs did not create minimum credit score to be qualified for a loan. This implies no specific credit score is required from a borrower when applying for a loan, however, the term bad credit was established by lending companies with their own goals and requirements to be qualified for a loan. Such requirements are known to be highly subjective which makes investors coming up with different requirements for their lending services which makes it difficult to approve VA loans for those with bad credit or late payments.

A borrower with unpaid debt, collections and judgments may not be rejected for a loan but a lender might be wary of working with a borrower with an excessive financial hardships, some of those lenders might only be interested in just your credit history of the last 12 months while a suitable explanation why you made some late payments just can’t be enough to get things going.

 Have you been considering the option of a VA loan but you have the problem of a bad credit? Do you think it’s impossible for people with bad credit to get a VA loan? 50stateslending is here to help! Working with us will have a team of highly trained loan officers on your side to get you through the VA home loan process with success and with a strategy that suits you. With the numerous lending agencies out there implementing different conditions to be qualified for a VA home loan, most veterans and spouses now think it’s impossible to be approved for the loan with a low credit score.

Can You Get a VA Home Loan With A Bad Credit Score?

Many vets and spouses have lost hope in terms of getting a VA home loan as they have a bad credit, they fail to realize there’s still a chance to be approved so long as you meet government requirements to be qualified. Despite what you think or what you may have heard, you can still be approved for the loan when working with us. You must now be wondering how someone can qualify for a VA loan with a bad credit score as I said before, a low credit score is determined by your lender. Our strategies are designed a way that every client is satisfied regardless of their credit score so long as you meet the least requirements to be qualified for a VA loan. Get to us so we can guide you through the loan VA loan process.

Contrary to the popular belief, VA home loan can be possible for people with bad credit score and in similar conditions like listed below;

• A stable income
• No outstanding collections
• No outstanding judgments
• No late payments within the time of 12 months
• Bad credit of 530 to 620

Other lending companies normally have a lower limit of 620 credit score to get financing for those with poor credit scores, 50estateslending has made it possible for those with credit scores as low as 530. VA mortgage loans were made with the aim of satisfying the borrower and not the lender, we work hard for the satisfaction of every client. The program was created back in 1944 as an appreciation to service personnel returning from World War II. We assist every Veteran to use the VA home loan achieve their buying needs.

            However, one of the main hassles of being approved for a regular home loan is getting a good credit score, down-payment, and closing costs. Most veterans who spent most of their lives oversee would definitely lack a good credit score to get financing, some lack the funds for a down-payment for which the VA program was made to free veterans from such worries after their completed service so they can own a home. Since the creation of the VA home loan program, a few changes have been made including the increase in the amount veterans can borrow and the ability for an active duty individual apply to a VA home loan.

Will a Bad Credit Score Affect The Loan Amount When Getting a VA Loan?

As stated by the U.S Department of Veterans Affairs, no credit score can affect the total eligible loan amount as there is no maximum debt ratio that could get you qualified for a guaranteed loan. Back in 2017, the VA loan had a limit of $424,100 for homes in most of U.S counties while the 2017 limits for the 238 most expensive U.S neighborhoods was set at $636,150. This means everyone qualified for a VA home loan can receive it despite the presence of bad credit, you will only be able to get the loan within the county limits which is the only factor that can influence the loan amount.

More to that, no down-payment is needed to get a VA loan approved despite your credit score unless you’re going for a property worth more than the loan value. The VA loan receivers are given the chance to avoid paying for mortgage insurance known to be common in conventional loans.

            Working with us will give you the ability to access your VA loan with ease as we work with your satisfaction in mind. Late payments should never be a problem when collecting your VA loan, we get your loan approved so you can own a home.

Demetiy Johnson

50StatesLending.com

VA Home Loan Approval With Late Payments

A veteran calls me and his question was. Is it possible to get a VA home loan approval with late payments?  The answer is yes. When a veteran applies for a VA home, the lender runs your information through a program called Desktop Underwriting.  DU analyzes the risk of loan for the lender to determine the creditworthiness of the veteran. If the lender receives an approve eligible findings this lets then know that it's okay to move forward with the loan regardless of the late payment reporting on the credit report.

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Bad Credit VA Mortgage Loans

Getting a VA loan approved with manual underwriting.

There are two ways to get a bad credit VA mortgage loans approved. Automated Underwriting and Manual Underwriting.  With AU,  your lender will run your income your credit and assets through a program called desktop underwriting.  From that, you will get back, an approval, denial or a refer. A refer means that the loan qualifies for a VA manual underwrite approval. When qualifying for a bad credit VA home loan manual approval, the VA will look for compensating factors to compensate for your low scores and past negative credit history.  the three main compensating factors that VA looks for is. Those are....

No Late Payments or

• No Late Payments or Collections for 1 year
• Low debt to income ratio (Below 45%)
• Long-term employment
• liquid assets (Stocks, Bonds, 401k, Savings)
• Sizable down payment
• Military benefits
• 1 Year Satisfactory home ownership experience
• High residual income
• Tax credits for child care
• Tax benefits of home ownership

Thank you for reading.

50StatesLending.com

We need legislation to cover the US Guard and Reserve [Commentary]

It’s time to be honest about the Guard and the Reserve — despite their name and low-commitment reputation, it’s been a long time since serving as a member of the Reserve component, or RC, has truly consisted of one weekend a month and two weeks of training in the summer. 

The RC has been a consistent source of boots on the ground in Iraq and Afghanistan, used to ameliorate the operational tempo and strain on the active-duty force. However, rhetoric surrounding the “total force” concept is only now catching up with reality, and there’s a moral imperative for legislation and policy to do the same. Congress should update the Uniformed Services Employment and Reemployment Rights Act, also know as USERRA, to reflect the increased training commitments of today’s force and consider additional tax benefits such as deductions for hiring reservists and tax exemptions for "differential pay." 

The role of the RC has shifted from “a strategic reserve to an operational force." High-demand Army National Guard units are facing an increase of training days up to 60 a year over the course of four years, while the Air National Guard is trying to negotiate with employers, recognizing that airmen often work 60-80 days a year to meet necessary training demands. As training increases, leaders cite a focus on predictability to try and mitigate the impact on families and employers, yet this may not be enough. 

Though the RC is more operational than ever, there has been no legislative action reflecting this change to ensure the men and women serving in the Guard have the necessary legal protections to do so effectively. A recent memo to the Massachusetts National Guard notes: “We will constantly be challenged by operational demand, the urgency of readiness requirements, and the constraint of time as a reserve component of the Army.” .... Read more

2017 Basic Allowance for Housing Rates

The Basic Allowance for Housing (BAH) is based on geographic duty location, pay grade, and dependency status. The intent of BAH is to provide uniformed service members accurate and equitable housing compensation based on housing costs in local civilian housing markets, and is payable when government quarters are not provided.

For your personalized pay and allowance computation check out our Military Pay Calculator.

Each year the BAH tables are released between December 15 and January 1.

Current BAH Rates:

The overall average military Basic Allowance for Housing rates across the country increased over the last year. As noted above, BAH rates are based on the combination of local costs for rent, utilities and renter’s insurance for various housing types. Any fluctuation of one or more of those factors in a given location will affect BAH rates for that location. 

Any active duty servicemembers who see a drop in BAH for their locality will have their BAH protected, thanks to "individual rate protection," which was adopted by Congress over a decade ago. On the other hand, those who live in an area that sees a BAH increase will enjoy a bump in the paycheck.

View the Current BAH Rates 

According to the DoD, BAH rates now make it possible for servicemembers to have zero out-of-pocket expense -- for servicemembers living in civilian rented housing. Since 2008 the BAH rates are directly related to the cost increases of the local rental housing markets.

Although BAH rates will generally either remain stable or increase, there may be some areas that decrease due to a decreasing local rental market. However, individual rate protection will still apply. Individual rate protection prevents the decrease of a BAH rate as long as the status of a servicemember remains unchanged. The servicemember who is already attached to his or her unit and receiving BAH will receive any published BAH increase, but no decrease. When the new BAH rates go into effect, rate protection assures that the servicemembers typical out-of-pocket costs may be less, but never more, than upon their reporting date.

Can You Use Electronic Signatures For VA Home Loans?

Sometimes it takes a while for concepts to catch on. The use of electronic signatures is one such concept that has taken a while to filter in to the mainstream. There are many who have initiated or closed their VA home loans using a good old fashioned pen and paper, but many lenders are making the switch to electronic documents as much as possible.
In the same way people are able to purchase new cars using electronic forms and digital signatures, you can also get a VA mortgage with bad credit scores
electronically with a participating lender.

To that end, the Department of Veterans Affairs has published some guidelines to help both borrower and lender understand what’s required and acceptable when using a digital or electronic signature. In VA Circular 26-13-13, the VA addresses the issue:
“The purpose of this circular is to clarify that electronic signatures are acceptable for use in conjunction with the VA Home Loan program.”

Simple and direct. But there’s more: any lender who chooses to use electronic signatures is required to comply with applicable federal laws established way back in the year 2000. The Federal Electronic Signatures in Global and National Commerce Act, commonly referred to as the E-sign Act, was signed into law on June 30, 2000. The E-sign Act served to establish baseline rules for internet commerce, including electronic signatures, stating:]

• There should be no discrimination between handwritten and electronic signatures.
• All electronic records should be kept for the same amount of time as a handwritten signature.
• There should be a provision for electronic acknowledgment or notarization of online documents when, and if, necessary.

Additionally, the E-sign Act established that electronic signatures will have the same legal standing, stating in the Act that “No contract or legal document signed online may be denied legal efficacy because it was delivered by an automated program.”

While the VA is quick to point out that the use of electronic signatures is NOT mandatory, those lenders who do employ them must comply with the E-sign Act. Borrowers or lenders who have questions ahttp://www.50stateslending.com/bout what is required in order to remain in compliance with federal laws should contact the Department of Veterans Affairs directly.

VA Rules on Minimum Property Requirements

In the past, we have discussed situations where the Department of Veterans Affairs might waive its minimum property requirements. But some requirements cannot be waived because they directly affect the health or safety of anyone who might live in the home.

House hunters applying for a VA home loan with bad credit won’t be approved for a loan on any property that doesn’t meet basic VA minimum property requirements in these areas.

According to the VA rules, properties evaluated by a VA appraiser must be free of hazards and defects. Any issue that could affect the health of the future owners must be addressed. Below are some of the most common issues that potential home owners may not consider to be factors of minimum property requirements, the issues aren’t as obvious as you might think.

Foundation

Foundation problems are a deciding factor when considering minimum property requirements. Foundation issues can be common in states like Texas, and violate the VA’s minimum property requirements.

Dampness

Excessive dampness is another issue. In Louisiana, some dampness might be expected based on humidity factors and other issues. But too much dampness is a potential structural hazard and won’t pass VA requirements.

Drainage

VA rules state that in order to be approved for a VA home loan, a property must be properly graded so the home has, “positive, rapid drainage away from the perimeter walls of the dwelling, and prevents ponding of water on the site.”

Let Rapid Re-scoring improve your credit scores in 5-7 days?

Score Plus – Rapid Rescore – The Rapid Re-score program allows can boost your credit score with the three national repositories in 5-7 business days.

How to get a va home loan with bad credit scores? We will forward  documents supplied by you directly to Equifax, TransUnion and Experian for a rush investigation and current balance updates. The repositories will update credit information and trade lines on their credit reports.

How does the Score Plus program work? Your credit report may be inaccurately reporting data on your credit file or your may have credit card debt that can way down your FICO score. By paying down your credit card  and loan debt to a certain percentage usually between 10-30% of the credit limit will improve your. We will review the document(s) and then forward them to the requested bureaus. Each bureau will then verify the documentation and notify that their update has been completed. Once we receives confirmation that the bureaus have been able to update credit information for your borrower, We then repull new credit and advise you to access the updated report and scores.

How long does it take to update credit information? While were unable to guarantee a completion date, turnaround time to update credit information is typically 5-7 business days from the time your request is received. If the bureau rejects the documents, you will be promptly notified.

What types of credit information can Score Plus update?

Given a verifiable document from the creditor, Score Plus can:

·         Remove derogatory information and accounts that were reported in error

·         Update an account that has been paid in full and closed

·         Update the status of a collection

·         Update a balance or paid-in-full status

·         Update an account to show that it was included in a bankruptcy

HOW TO USE CREDIT CARDS TO BOOST YOUR CREDIT SCORES

Having a good credit history and credit score is extremely important options to consider when looking at how to get a va home loan with bad credit.

. Not only will it qualify you to receive credit cards, but also home, car, and student loans.

Credit scores are used to determine insurance rates and even whether you need to make a deposit to receive utility services.

The problem that many people face with a limited or poor credit history is that they cannot receive the credit necessary to build or rebuild their credit history. Thankfully, there are a few ways to avoid this paradox:

Secured Cards
1. Secured cards are like regular credit cards in almost every way, except that applicants need to place a deposit on their account before receiving their card. This deposit may be equal to their credit limit, but some secured card issuers will allow cardholders to charge beyond the amount of the security deposit.

Applicants looking for a secured card need to be very careful to avoid all of the inferior products marketed to this segment. The best cards will be issued by a major bank and have a grace period so that interest charges are waived when the entire balance is paid in full.

Become a authorized user on someone else's account

2. Another way that people can improve their credit scores and credit histories is to become an authorized user on the account of a person with an excellent payment record. In this way, the other person’s account will be reported on their credit history.

Given future on-time payments, this account will appear on the authorized cardholder’s credit history and will be reflected in their credit score.

Receive a store charge card

3. Secured cards are the easiest to get with poor or new credit history. Just behind are store charge cards. These cards, which are only valid at the store that issues them, are often granted to people with limited credit history. Cardholders might have a very small line of credit, but it can be a valuable tool to build credit history.

What not to do to improve your credit scores.

People looking to build their credit history should not look to prepaid cards or debit cards to do so. These cards are important methods of payment that can never incur debt, but their use will not be reported to credit agencies.

It can be very hard to build or rebuild a credit history, but it’s important to do so. By utilizing all of these tips and tricks, credit card users can improve their credit scores quickly get approved for a va home loan with bad credit.

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