VA Loans With No Credit Score And DTI Requirements

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This BLOG On VA Loans With No Credit Score And DTI Requirements Was PUBLISHED On January 5th, 2019

VA Loans With No Credit Score And DTI Requirements
Gustan Cho Associates

Many borrowers do not know that there are lenders like Gustan Cho Associates that offer VA Loans With No Credit Score And DTI Requirements.

  • The Department of Veterans Affairs does not mandate a minimum credit score nor debt to income ratio cap on borrowers who get an approve/eligible per automated underwriting system
  • Many borrowers at Gustan Cho Associates have closed their VA Loans with credit scores in the 500’s and over 60% DTI with an approve/eligible per AUS
  • But why do most lenders require minimum credit score requirements and debt to income ratio caps on VA Loans?

In this article, we will cover and discuss VA Loans With No Credit Score And DTI Requirements.

What Are VA Lender Overlays Imposed By Lenders?

All mortgage lenders need to abide by VA Agency Guidelines.

  • However, lenders can have their own separate lending requirements
  • These separate individual lending requirements by lenders are called overlays
  • VA Agency Guidelines does not require minimum credit score requirements
  • Borrowers with 500 credit scores can get an approve/eligible per automated underwriting system and can get approved for VA Loans
  • However, a lender may not approve a 500 credit score borrower and require a higher credit score due to their overlays
  • This is perfectly legal. Gustan Cho Associates is one of the few national lenders that has no overlays on VA Loans
  • Gustan Cho Associates only goes by VA Agency Guidelines
  • As long as borrowers get an AUS approve/eligible and can meet the conditions, Gustan Cho Associates will approve and close their VA Loan

Typical lenders will cap credit score requirements on VA Loans at 620. We have approved and closed countless of VA Loans with borrowers with credit scores below 600 credit scores.

VA Loans With No Credit Score And DTI Requirements: High DTI

What are VA loans without a credit rating and DTI requirements: High DTI

Many borrowers do not realize that the VA does not have a minimum debt to income ratio requirements.

  • However, many lenders will have VA Overlays on debt to income ratios where they cap it between 41% to 50%
  • Gustan Cho Associates has gotten approve/eligible per automated underwriting system on VA borrowers with DTI exceeding 60%
  • As long as borrowers have strong residual income, the automated underwriting system will render an automated approval with higher DTI
  • Residual Income is very important when it comes to getting an approve/eligible per AUS for higher DTI borrowers

Gustan Cho Associates is one of the few national lenders with no overlays on debt to income ratios on VA Mortgages.

Obtaining Certificate Of Eligibility

Only active and/or retired members of the United States Military with Certificate Of Eligibility can qualify for VA Loans.

  • Gustan Cho Associates will assist borrowers in obtaining their Certificate Of Eligibility through the Department of Veterans Affairs
  • This can be done in a matter of hours and the assigned loan officer and/or mortgage processor will handle it on behalf of our borrowers

VA Eligibility Requirements

How to qualify for VA loans without a credit rating and DTI requirements with a direct lender without overlays

VA Home Loans is for owner occupant homes only. VA Loans is one of the best loan programs in the U.S. However, it is only for veterans of our U.S. Armed Services with COE.

Here are the basic VA Eligibility Requirements:

  • VA offers 100% Financing
  • Upfront VA Funding Fee can be rolled into the VA Loan Balance
  • No closing costs: closing costs can be covered with sellers concessions and/or lender credit
  • 2 year waiting period after Chapter 7 Bankruptcy, foreclosure, deed in lieu, short sale
  • Borrowers can qualify for VA Loans one year into a Chapter 13 Bankruptcy Repayment Plan
  • No Waiting Period after Chapter 13 Bankruptcy Discharged Date
  • Outstanding Collections and Charged Off Accounts do not have to be paid
  • One to four-unit properties are eligible 
  • 100% cash-out refinance allowed

Qualifying For VA Loans With No Credit Score And DTI Requirements With Direct Lender With No Overlays

Borrowers who are having a hard time finding a direct VA Lender with no overlays, look no further. Contact us at Gustan Cho Associates at 262-716-8151 or text us for faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays. 

This BLOG On VA Loans With No Credit Score And DTI Requirements Was PUBLISHED On January 5th, 2019

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