When you buy a house you have to be able to handle it when a $3,000 furnace dies along with the $300 water pump. Then suddenly you have to spend $5,000 on a roof and what do you do?
If you have bad debt now ( I would expect that with that low a score) talk to a free credit counseling agency to help you get the debt paid down. Once that is done you will find it much easier to get a loan, get it at better rates, and have the freedom to not feel crushed by bad credit and have open credit lines.
If you buy a house with limited extra resources it gives you to good a chance to lose it later. You only get ONE V.A. loan in your life. As one vet to another I do not want to see you waste it. I would think in 3 years you could have a much better FICO score and likely find lower prices on houses.
There simply is not enough information here to tell you yes or no. I am located in St. Petersburg, FL and I'd be more than happy to assist you with your financing needs. As a disabled veteran, not only are you able to take advantage of 100% financing with no MI, if you are 100% disabled you also pay no taxes saving you thousands of dollars a year and hundreds a month. Give me a call and we can evaluate your loan situation.
Joshua A. Lerette - The Tampa Bay Mortgage Pro