Can I Qualify For VA Loan With Under 620 Credit Scores

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Can I Qualify For VA Loan With Under 620 Credit Scores 

This BLOG On Can I Qualify For VA Loan With Under 620 Credit Scores Was Written By Gustan Cho

VA Loans is a government loan program administered by the United States Department of Veteran Affairs. VA Loans is the best mortgage loan program available in the United States.

Here are the characteristics of a VA Loan:

  • No money down on a home purchase
  • 100% financing
  • 4% sellers concessions allow by home seller to home buyer
  • The home buyer does not need any closing costs
  • With no down payment required and closing costs being covered either by sellers concession and/or lender credit, buyers with a VA Loan can close on their home with zero money out of pocket
  • No annual mortgage insurance premium
  • VA Home Loans have one of the lowest mortgage rates out of any loan program
  • VA Loans are only available to Veterans of the United State Armed Services with a Certificate Of Eligibility

Qualifying For VA Home Loans After Housing Event And Bankruptcy

  • Veteran home buyers can qualify for a VA Loan 2 years after a Chapter 7 Bankruptcy Discharged Date
  • Veterans can qualify for a VA Loan 2 years after a short sale
  • Buyers can qualify for a VA Loan 2 years after the recorded date of a foreclosure
  • VA Mortgage Borrowers can qualify for a VA Loan 2 years after the recorded date of a deed in lieu of foreclosure
  • Deferred students loans that has been deferred more than 12 months are exempt from debt to income ratio calculations
  • Only legally married spouses can be co-borrowers not like FHA where family members related to blood, law, and/or marriage can be non-occupant co-borrowers
  • VA does not allow for non-occupant co-borrowers
  • One to four unit residential properties are eligible for VA Loans
  • VA allows up to 100% Loan To Value on VA cash out refinances

100% Financing On VA Home Loans

Again, VA Loans do not require any down payment and closing costs can be covered either by a lender credit or sellers concession. But VA Loans are not for everybody.

  • VA Loans are only eligible for Veterans with COE, Certificate of Eligibility
  • One of the greatest benefits for serving in the United States Armed Forces is the potential benefit for the Veteran to get the Certificate of Eligibility to qualify for a VA Loan

What Are The Requirements For A VA Loan?

VA Loans are like any other government loan program except that the borrower needs to be a Veteran of the United States Armed Services with a Certificate Of Eligibility Certificate from the VA.

Here are other basic requirements to qualify for a VA Loan:

  • VA Purchase Home Loans are only for owner occupant properties only
  • Only Veterans with a Certificate Of Eligibility can qualify for a VA Loan
  • Income is required and proper debt to income ratios needs to be met in order to get an approve/eligible per Automated Underwriting System
  • VA does not have a minimum credit score requirements
  • VA credit score requirements is set by the individual VA mortgage lenders
  • Most mortgage lenders will have minimum credit score requirements of at least 620 for a VA Loan
  • Others will have overlays on credit scores on VA Loans set at a 640 Credit Score
  • $0 down payment and no mortgage insurance premium required
  • Many Veterans can qualify for VA Loan With Under 620 Credit Scores
  • But stipulations arise which we will discuss in the following paragraphs
  • Gustan Cho Associates has no minimum credit score requirements

Qualifying For VA Loan With Under 620 Credit Scores

Most VA Lenders will require a minimum credit score of 620.

  • However, there are mortgage lenders that will approve VA Loan With Under 620 Credit Scores
  • Normally lenders who qualify VA Loan with under 620 Credit want the credit scores not to go under
  • One thing borrowers need to know is that the Department of Veteran Affairs, or VA, does not mandate a minimum Credit Score
  • Whatever the minimum credit score requirements by a VA Lender is not the VA requirement but the VA mortgage lender’s requirement
  • So if a VA lender requires a credit score of 580, 620, or 640 Credit Score, this credit score requirement is not the VA Guidelines on credit scores
  • BUT it is the credit score requirement by each lender who can have overlays on credit scores on VA Loans
  • Bottom line, most VA mortgage lenders have lender overlays on VA Loans.

Veteran home buyers who are looking for a direct VA Lender that will approve VA Loan with under 620 Credit, contact Gustan Cho Associates at 262-716-8151 or text us for faster response or email us at gcho@gustancho.com.

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