If you're a veteran who desires to buy a home through the VA, you may be wondering how your past credit will have an impact on your capability to take out a mortgage or get auto financing for bad credit. The reality is, there are numerous tough rules that have been settled by the VA that will make buying the home you want a bit harder when going through the VA.

The VA has much more lenient guidelines when it comes to underwriting loans for veterans than other government agencies, like the Farmers Home Administration, for What follows What follows is an itemization of different circumstances that the VA may look at when you apply for a VA mortgage with bad credit.

Chapter 7 bankruptcy ( where all debts are discharged ) filers must wait two years after the discharge of their bankruptcy before becoming fit for VA financing. If your bankruptcy was brought on due to circumstances that were outside your control that are provable, for example medical problems that kept you from working, or job loss that was not initiated by you, you can qualify after one year.

If you have been through a foreclosure, the Chapter seven rules apply to you as well, regardless of whether you have filed bankruptcy or not. Chapter 13 bankruptcy ( where you repay some of your obligations on a repayment plan) filers can apply right away for VA financing for their home purchase, but will need to show explanation of one year of good payments towards reconciling their excellent debt with creditors referred to in the bankruptcy.

Improving Your Credit Score

One way to speed up the recovery of your credit is to mail a copy of the bankruptcy discharge paperwork to all three credit reporting bureaus. the credit bureaus will not have an accurate reflection of your bankruptcy on record, thus providing them with a copy can expedite the process, which is important to recovering your good name.

You should also work hard to restore your credit by opening up at least two secured credit card accounts after bankruptcy. A secured credit card is one that is secured by a deposit that you make to the Visa card issuer in the amount of credit that you need to have extended to you.

To effectively raise your credit history with a secured card, you need to use only 50 p.c of the available credit on the card ( in this situation $250 ) and clear the balance every month, other than thirty percent (in this case $150). Always make timely payments and watch your points add up!

You can find great online issuers of secured credit cards. You can also find auto financing for people with bad credit if you search the phrase bad credit loans on Google.

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