Can You Get A VA Loan With Bad Credit Or A Cosigner

Having bad credit can be a huge burden in relation to qualifying for a conventional loan, not to mention a VA loan. The accurate information is that qualifying for a VA loan with bad credit continues to be possible with a cosigner or evidence of mitigating instances. In this article, we can take a look at the qualification necessities for a VA loan with a bad credit score or a cosigner and what to do in case you don’t have a cosigner. We’ll also add some tips on how to raise your credit score to make it easier to get the loan you need.

Tips To Get A VA Loan With Bad Credit Or A Cosigner

Securing a VA loan with bad credit can seem impossible, but there are ways to increase your chances. First and foremost, it’s important that borrowers understand the requirements and qualifications for VA loans before seeking one.

Having bad credit or a cosigner does not automatically disqualify someone from getting a VA loan, but it does mean that the borrower may need to jump through a few extra hoops. Following these tips can help you get a VA loan with bad credit or a cosigner.

  • Improve your credit score:

Before applying for a VA loan, improving your credit score and credit history is important if possible. Start by paying off any existing debt and make sure to make all of your credit card payments on time. This will help create a positive payment history and boost your score.

  • Have a cosigner:

Having a cosigner can make the loan process more accessible, even if you have bad credit. A cosigner with a good credit history and excellent credit score will be able to shoulder some of the risks of the loan.

  • Save up for a down payment:

A down payment can demonstrate to lenders that you have the financial means to repay the loan. Aim for a down payment that’s at least 3-5% of the total loan amount.

  • Get pre-approved:

Before searching for a home, obtaining pre-approVAl for a VA loan can demonstrate to sellers that you’re a serious buyer. Getting pre-approved also shows you’re a serious borrower, even with bad credit or a cosigner.

  • Obtain a Certificate of Eligibility:

First-time homebuyers who are veterans, active duty military, or National Guard members must have a Certificate of Eligibility from the Department of Veterans Affairs. You can apply for the certificate online or through a VA-approved lender.

Can You Get A VA Loan With Bad Credit Or A Cosigner

Yes, it is possible to obtain a VA loan with bad credit or with the help of a cosigner. The Department of Veterans Affairs (VA) loan program offers VArious options and accommodations that can help veterans with bad credit secure a loan.

Additionally, having a cosigner can strengthen the loan application and increase the likelihood of approVAl. While bad credit may present challenges, exploring these options can open doors to homeownership for veterans.

Unlike conventional loans, VA loans do not have a specific minimum credit score requirement set by the VA. Instead, lenders set their own standards. While a higher credit score typically results in more favorable loan terms, lenders can work with veterans who have lower credit scores, taking into account the unique circumstances and providing a pathway to homeownership.

Documents Required In Getting A VA Loan With Bad Credit Or A Cosigner

Securing a VA loan can be a VAluable opportunity for veterans to achieve homeownership. However, when dealing with bad credit or relying on a cosigner, it is important to understand the documentation requirements involved. This article will outline the essential documents needed to successfully apply for a VA loan with bad credit or with the support of a cosigner.

Documents Required In Getting A VA Loan With Bad Credit Or A Cosigner

  • Proof of Eligibility

To initiate the VA loan application process, veterans must provide proof of their eligibility. This is typically done by obtaining a Certificate of Eligibility (COE) from the Department of Veterans Affairs (VA). The COE confirms the veteran’s service history and verifies their eligibility for a VA loan. It can be obtained online through the eBenefits portal, by mail, or with the assistance of a VA-approved lender.

  • Financial Documents

a) Income Verification:

Lenders require proof of income to assess the borrower’s ability to repay the loan. Veterans should gather recent pay stubs, W-2 forms, or tax returns to demonstrate their income stability. If receiving disability compensation, documentation such as the VA award letter or verification of benefits is necessary.

b) Bank Statements:

Lenders may request recent bank statements to assess the borrower’s financial stability and eVAluate their ability to manage mortgage payments. Providing two to three months’ worth of bank statements can fulfill this requirement.

  • Credit Documentation

a) Credit Report:

Both veterans with bad credit and those seeking a VA loan with a cosigner must provide a credit report. This document outlines the borrower’s credit history, including credit accounts, payment history, and outstanding debts. Veterans can obtain a free copy of their credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) through

b) Credit Explanation Letter:

Veterans with bad credit should consider drafting a letter explaining any negative items on their credit report. This allows them to provide context and provide details about steps taken to address previous financial challenges.

  • VA Loan-Specific Documents

a) Purchase Agreement or Contract:

Veterans should provide a copy of the purchase agreement or contract for the property they intend to purchase. This document outlines the terms and conditions of the transaction and serves as proof of the property’s VAlue.

b) VA Loan Application:

The loan application is a standard form provided by the VA-approved lender. It includes information about the borrower’s personal details, employment history, and financial status. The lender will guide the applicant through the completion of this form.

  • Cosigner Documentation

If a cosigner is involved in the VA loan application, additional documents are required:

a) Cosigner Agreement:

Both the veteran and the cosigner should sign a cosigner agreement. This document outlines the responsibilities and liabilities of the cosigner regarding the loan repayment.

b) Financial Documentation of the Cosigner:

The cosigner must provide their financial documentation, including income verification, bank statements, and credit reports. This information helps the lender assess the cosigner’s creditworthiness and ability to support the loan.


Getting a VA loan with bad credit while disabled is also feasible, it may require the assistance of a cosigner or more paperwork for approVAl. It is essential to consider different loan alternatives, such as secured loans or higher interest-rate loans if VA loans cannot be secured. Additionally, understanding the eligibility requirements for a VA loan assists you to determine if one is good for your financial situation.

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