Credit score and credit issues are the most common reason veterans and active military members get denied for VA financing. So this blog post will summarize tips to help you maintain a good VA loan credit score while preparing to get a VA loan to buy or refinance a home in California.
- #1 is to make sure you pay everything that reports to your credit first. Items like car loans, credit cards, student loans, mortgages report payment history to the credit bureaus. So NEVER be late on these items. Items such as rent, cell phone bill, insurance, etc… do not report payment history to the credit bureaus (but they will report collections).
- If you have credit cards, make sure your balance is no more than 30% of the credit limit. This ratio will optimize your VA loan credit.
- Go through your credit report and make sure there are no errors. If there are errors have them fixed.
- If you have unpaid collection accounts, do not pay them. Yes you heard that right, paying old collections can actually lower your score because it updates them on your credit. Do not pay them before you close on your VA loan unless your VA loan officer says you have to.
- If you had a Bankruptcy chapter 7 you will have to wait two years from the discharge date to get a VA loan.
- If you had short sale you will have to wait two years from the sale of the property to get a VA loan
- If you had a foreclosure you will have to wait three years from the foreclosure date to get a VA loan
- You may think you have bad credit, but it might be still ok to get a VA loan. So definitely call and check.
And if you have credit issues, I am able to analyze your credit and set you up on a plan to be able to buy in a short period of time. I’m an expert at analyzing credit reports for VA borrowers and assisting them on improving their scores. And if there are items we can correct, I have a tool where I can update these credit fixes immediately to the credit bureaus and raise your score immediately (vs. waiting the 45-60 days for these fixed items to report naturally to the credit bureaus).
So send me an email (homeloan8@gmail.com) or call 858-922-7899 if you have any questions about your VA loan credit.
And below are some of the very most up-to-date advantages of VA loans in California today:
- VA loan limits in California can go all the way up to $962,750 with zero down in San Mateo, San Francisco, Alameda and Contra Costa County. Other counties with high VA loan limits are Los Angeles, Orange County, San Diego and Santa Clara counties.
- VA loan interest rates are still at the lowest they have been since the 1950′s
- You can often get a VA refinance loan on a jumbo loan size to 90% of the property’s value where this would not be available with conventional financing.
- VA streamline refinance loans can be done very painlessly with no income or asset documentation
Best Regards,
Rob Chomentowski
Sr. Loan Officer (and VA specialist)
858-922-7899
Tips For Improving Your VA Loan Credit Score in California is a post from: VA Home Loans 858-922-7899
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