Credit issues don’t need to end your homeownership dreams.
A VA loan is a type of loan that offers many benefits beyond a loan that is referred to as “conventional”. Freedom Mortgage is a leader in providing loans to veterans and active military and are available to help you understand your options. The VA home loan program, which is backed by the Department of Veterans Affairs, enables you to purchase a home with zero money down, no private mortgage insurance and lower interest rates. These three advantages mean significant savings for you over conventional loans.
Many VA lenders will provide mortgages to applicants with credit scores as low as 620. A few lenders, however, can offer mortgages to applicants with even lower credit scores. Freedom Mortgage is one of those lenders. We offer expanded credit options. We appreciate the sacrifice of military service and we understand how credit and finances can suffer. We are more willing to look at a Veterans full financial picture rather than just a credit score.
Here are few things you can do now to help your credit score.
- point 1Check your credit once a year. You can get a free report on www.annualcreditreport.com opens in a new window or contact each of the credit bureaus, Experian, Equifax and TransUnion, to receive your scores.
- point 2Look for mistakes. You may find an error that can be easily fixed to help increase your credit score.
- point 3Keep your credit limit and balance in line. Try to pay down as much credit card debt each month as possible and keep a low debt utilization ratio, which is how much you owe compared to the amount of credit you have.
- point 4After you apply for your loan, don’t add new credit cards or large expenses. Put off big purchases such as a new car until after your loan closes.
- point 5Track your bills. Keep a calendar or set up reminders on your mobile phone or computer for when bills are due. Even a few days late can negatively impact your scores.
Freedom Mortgage can help you with all the considerations of a VA loan including understanding your credit score. Contact us today.