Mortgage Lenders for Veterans with Bad Credit?
My sister and her husband would like to buy a home. This house is
very special to her since it is close to our parents house and always
wanted to buy it. She can get the house for a good price around
$40,000, but they had some credit problems a few years ago. They also
filed for bankruptcy about two years ago.
Her husband is a Veteran, but he did try to apply for a VA Loan and
was told that he missed the eligibility requirements by a few weeks.
Are there any companies that would give someone like them a chance? A
mortgage on $40,000 will be lower than the rent they are now paying
per month. Since he is also a veteran, are there any companies that
may give them a better chance because of his military service?
There are quite a few 'subprime' lenders that specialize in people
with bad credit. And they usually rake them over the coals something
awful. They do not do people favors out of the charity in their
hearts, though perhaps they'd like the poor slobs they lend to, to
think so. Hey, its a free country, and its a business. I even have
some stock in one. But since this home is a 'want' not a 'need' I
suggest they not get hooked.
>.... Since he is also a veteran, are there any companies that
>may give them a better chance because of his military service?
The govt gives benefits to veterans (like perhaps sub-market rates on
VA loans). Other than that, I'm not aware of private lenders that
take less profit or more risk in order to deal with a veteran with bad
credit. Don't see how it would make much difference to a private
business whether a borrower had ever served in the military. Some
people join the military to serve their country, others at the
suggestion of their probation officer, so I don't see that one can
assume that JUST because someone is a 'veteran' that they are more
likely to repay. And if that was the case, how would someone make a
business decision on that basis?