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Va Loan And Bad Credit


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I was just recently rated at 100% scheduler and received one year back pay for the difference of 70% to 100%. I would like to be able to buy a house sometime soon but the problem I have is that I have really poor credit. I just finished a bankruptcy in Dec 2010 before I was awarded 100% Prior to that my wife and I with six children had a taxable income of 14,000. A large part of my bad credit were due to my SC disability affecting my ability to work.

Now that I have an income from VA and SSDI I can afford a mortgage where I never could before. How can I express to banks that although I was a credit risk before I now have the ability to pay for a home?

Is there anyway to have a mortgage lender be able to secure a lower interest rate if poor credit was related to disability?

I know that I can eventually get a VA loan but everything I have read seems to suggest that my credit be really good or at least be two years out of bankruptcy.

Edited by eddingtons
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It seems lenders around here won't even look at lending for those under 600 credit score. Also with a the problems you have experienced and stated even though a good income now, it will be more likely than not you will find a lender in the near future. Have you thought about Contract For Deed? That might be an avenue to explore. You are able to put a good down payment and a private lender/owner may be more open to that with the $$$$ down payment. I don't think financing without the possibility of some outrageous lender like charging 20% or more would be beneficial for you now. Short sale not likely to occur, and foreclosed one's either. Hopefully you may find a contract for deed one in the area you want to live, but make sure you use an attorney to draw up the legal papers before any change of cash is deposited to anyone. Good luck, and glad you received you back pay. It may take a while but things can and will get better.

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