Considering buying your first home? Make sure you consider using a VA loan. Current mortgage rates are some of the lowest in decades, and there is no better time than now to become a homeowner. I was recently able to get a VA loan with bad credit, and would love to share with you how I did it.
The first step in my home buying process was to get a Certificate of Eligibility from the Veterans Administration. While your mortgage company can do this for you later, I decided to get this step out of the way. I have a 40% disability rating from the VA, and was eligible, and you may be as well if you:
- Served for 24 consecutive months since 1990
- Served during WWII, the Korean or Vietnam Wars for more than 90 total days
- Served for at least 181 continuous days post WWII, Korean, or Vietnam War
Also, current active duty, reserve, and national guard members with more than 90 days of service are eligible, as well as those who meet certain discharge conditions.
Finding a Home
I found our home quickly, but for many this is a long process. A real estate agent is a valuable resource, I gave ours a detailed description of what we wanted, and he was able to find it quickly. If you choose to search for a home yourself it will not be easy. After finding a home we liked, we made an offer and looked for financing.
Finding a reliable lender that offers VA loans is easy, most large banks are eager to help. The VA provides financial stability to your loan application, and in my case, the VA guarantee was very helpful in overcoming credit issues. Our mortgage company arranged all the required services, such as a VA appraisal, documentation, and inspections, although we paid for the inspection ($425). Despite my bad credit, we qualified for a 30 year mortgage at 3.75% interest and no closing costs.
Closing for us was a quick process, the mortgage company hired a title company who prepared all the paperwork. We showed up, signed the papers, and walked away with the keys to our new house. As long as there are no difficulties or unique situations, your home buying process should be just as easy!
“Eligibility Requirements for VA Loans” — Veterans Administration