You're an eligible veteran, wanting a mortgage, who has had some problems in the past with credit. Just how bad must things be before you stand no chance of getting approved for a VA mortgage? Well, different lenders use different criteria to reach their decisions, but some mortgage brokers place the current cut-off point as a credit score of about 620.
Unfortunately, that's not a fixed number. Your "debt-to-income ratio" (how comfortable you're going to find it making mortgage payments after you've met your liabilities out of your regular income) is also going to play a part, and the tighter that's looking, the better your credit score needs to be.
If your credit score is way short of 620, you may well have no choice but to postpone applying for a VA mortgage until you can raise it. Follow those three rules for a while -- and, even more importantly, be sure to pay every bill on time -- and you might be pleasantly surprised by how quickly you make progress.
The popularity of VA mortgages is skyrocketing, with 71 percent more purchases and 20 times as many refinances in 2012 than in 2007. On October 26, the Department of Veterans Affairs revealed that it had recently guaranteed its 20 millionth home loan.
When you look at the list of benefits elsewhere on the Department's website, it becomes clear why their popularity is rising. To pick just a few, VA mortgages:
Wow. Real, bankable privileges for veterans. Who'd have thought?