Even though the VA loan is more lenient than conventional mortgage programs, there are still credit requirements in order to be approved for a VA loan.   Most banks require a minimum 620 credit score and 12 months mortgage history with no lates.

Types of imperfections on a credit report that may affect the VA loan approval process:

• Collections
• Late payments
• Judgments

Payment History Factor

Re-payment history is an important factor in getting approved for a VA loan. Your rental and mortgage payment history signify your ability to pay your housing payment and will better qualify you for a VA loan.

If you lack credit history, provide explanations for any of the following:

• If you are a veteran who has been recently discharged and have not been able to establish credit
• Use cash instead of credit on a regular basis for bill paying and purchases
• Veteran has not used credit since reconciliation of bankruptcy and judgments

Bankruptcy

Bankruptcy does not immediately disqualify a veteran who is applying for a VA loan. If you have had a bankruptcy discharged over 2 years previously to applying for a VA loan it may not be considered. If the bankruptcy discharge was within 1-2 years of applying for a VA loan there are a couple things that are taken into consideration that may still help qualify a veteran:

1. If you have obtained credit following the bankruptcy and made satisfactory timely payments
2. If reasons for Bankruptcy were above and beyond the control of the veteran-Loss of job, medical bills, divorce, loss of a business etc.

Foreclosure

Foreclosure is still another issue that will be a deciding factor in qualifying a veteran for a VA loan. The same rules apply as did with bankruptcy, but if the foreclosure is on a VA loan that may change the amount of entitlement available to be used.

Plan ahead and improve credit

When applying for a VA loan, work in advance to reconcile issues on your credit report by paying collection accounts in full or setting up payment plans with judgments against you.

Here are several things you can do:

• Get a free copy of your credit report in order to review
• Letters from creditors stating balances have been paid in full
• Pay credit card bills down to at least half of what open credit in on card
• Secured credit cards can help re-build credit

Close excess credit cards that are open only keeping necessary and low interest rate credit cards open—to much open credit can hurt you qualify for a VA loan.

For Recommended Credit Repair companies -

Sky Blue Credit Repair: Our Top Choice among Credit Repair Companies

Sky Blue Credit Repair has our vote for the best credit repair program available. It is our opinion that they have taken the business to a whole new level. This is far more than just a dispute factory. Sky Blue focuses on making sure you are left with truly usable credit – credit that meets prospective lender guidelines so you can really benefit in a tangible way.

We especially appreciate the Sky Blue Credit Repair focus on personalized customer service. The one-on-one attention is part of a comprehensive approach that makes them so attractive. They include unlimited credit bureau disputes, debt validations, credit score consultation, guidance with building new credit, and even assist with rehabilitation of student loans if needed.

We also really like the fact that Sky Blue Credit Repair only charges a single low monthly fee without requiring any upgrades. One price covers everything needed to clean up and restore your credit. They also offer a great 50% discount for spouses if you sign up together.

Sky Blue Highlights:

• Credit repair services offered since 1989
• A focus on the highest ethical standards
• One-on-one customer service
• A unique approach designed to build truly usable credit
• $49 setup fee followed by $49 per month – half price for spouse
• All inclusive – No confusing program options or costly upgrades needed

Check them out at Sky Blue Credit Repair. We think you will be impressed too!

Related posts:

1. Recommended Credit Repair Companies
2. 4 VA Loan Myths Demystified
3. VA Loans – An Overview

If we could share with you two credit repair companies that will deliver superior results EVERY time and at an affordable price, would you be interested? If so, you don’t want to miss this report.

For our test group, we investigated over 50 companies VERY thoroughly; leaving nothing to question, nothing to chance.  Our objective was to find world class providers at affordable prices.  A proven track record and performance guarantee was a MUST.  We scrubbed them with a wire brush looking for dirt and then scrubbed them some more.   After the dust cleared, two great companies were left standing.

Here’s our recommendations:

Lexington Law

PRO’s

• Lexington Law is arguably the largest credit repair company on the net.  Founded in 1991 and serving over ½ million clients, Lexington Law is a trusted name in credit repair.  Lexington Law has 22 attorneys and 400+ paralegals on staff ensuring the highest degree of professional help.  The past clients we interviewed were very happy with their services.

Proven track record-

• Lexington Law provides a full report for last quarter credit disputes won in the clients favor.   Lexington also states they removed a total of 600,000 questionable negative items last year alone! 2008 Quarterly Report

• Federal Trade Commission – Had no negative reports on Lexington Law.

• Strong refund policy that reads:

“As a consumer advocacy law firm, Lexington Law is committed to ensuring the rights and fair treatment of our clients. This commitment is exemplified by our own refund policy. We believe that you should not have to pay for services that have not been properly rendered. Our refund policy is simple: If we fail to provide the agreed-upon services to you (as outlined by your selected service level) for any given month, you will not be billed for that month, or will be refunded your fees for that month if your payment has already been processed.”

• Better Business Bureau rating: A-

CON’s

Size-

• Although they do offer the biggest team, this may also be the biggest drawback for those of us that crave a little personal attention.  With Lexington Law, you will find that many of their systems are “help yourself” in nature.  And while Lexington still does the credit disputing, you’ll need to log into their website and initiate the services they offer.  Think of it as automatic with a touch of do it yourself.

• Better Business Bureau – reported a total of 284 complaints in the past 36 months alone.  Please note:  ALL THESE COMPLAINTS HAVE BEEN RESOLVED as reported by the Better Business Bureau.  Most of the 284 complaints could be sourced to refund or exchange issues (76) and billing or collection issues (96)

• In our opinion, this is still a VERY GOOD track record considering the case load that Lexington Law handles.  The Better Business Bureau report would not scare us from using their services because they get results.

Sky Blue

PRO’s

• A proven nationwide credit repair company that has been in the business since 1989.  Sky Blue offers Great value with a personalize touch.  While both companies offer unlimited disputes, Sky Blue provides the MOST customer care.  They also keep things simple with a single monthly fee and offer spousal discounts

• Better Business Bureau rating: A+

• Federal Trade Commission- NO negative information reported.

• Rock solid refund policy that reads:

“We offer the most simple and reassuring guarantee in the business. If you are not satisfied we will refund your money in full. No questions asked.”

CON’s

• It’s a stretch trying to find something negative about a company that has done so well in this business.  We did note: They have only been a Better Business Bureau member since 1/2009.  This is not much of a track record.  But on the other hand, Sky Blue was founded in 1989 giving them 20 years of experience.

Our winner and personal favorite –

Sky Blue

Because we feel that anything dealing with credit scores, money, and banking requires personal attention.  We also like their iron clad money back guarantee, spousal discounts, and simple payment plan.

After examining about 50 other credit repair companies, we also noted many charged as much as $800 dollars for the very same services quoted below.

• Sky Blue -$99  Dollar set up fee and then $49 Dollars monthly.  Cancel anytime.  This includes unlimited credit bureau disputes.
• Lexington Law – $99 Dollar set up fee, and then $39 to $79 dollars monthly depending on the level of service you require.  Cancel anytime.

Without a doubt, fixing your credit is the easiest way to start saving BIG money.  And, for the cost of attending a local sporting event, we’ve shown you can hire a very professional credit repair company and CHANGE your financial future.

This is the opportunity you have been waiting for.   Act Today!

Related posts:

1. Credit Requirements for VA Loan