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Anyone do VA loans with 580 score

Valued Member

Anyone do VA loans with 580 score

Does anyone know any lenders willing to go town to 580 minimum score for a VA loan? My mid score is 599. Any info is appreciated! Thanks1

Jessica

Message 1 of 26
25 REPLIES
Super Contributor

Re: Anyone do VA loans with 580 score

First Guaranty Mortgage Corp will go down to a 530, SunWest Mortgage Company will go down to a 500.

 

However with a 599, unless you need to move out of your current home ASAP, you should work on getting it up to at least a 600 and preferably a 620 or 640 as you'll see much better interest rates.

Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime) since 2002, based in Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage

Message 2 of 26

Re: Anyone do VA loans with 580 score

Hi Jessica!   Sun West Mortgage will be able to do a VA loan for you.

 

~ModCut, pizzadude, MyFICO moderator

Message 3 of 26
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Valued Member

Re: Anyone do VA loans with 580 score

Thank you both for replying :-) Shane I was under the impression with VA everyone gets the same rates. Am I wrong?
Carla 1313 I sent you a pm
Message 4 of 26
New Visitor

Re: Anyone do VA loans with 580 score

Were you able to get a loan through one of these companies? We are in a similar position. 

Message 5 of 26
Established Contributor

Re: Anyone do VA loans with 580 score

Jessica,

 

I'm sure Shane will chime back in when he has time but the interim I'd like to share his response to me once in an email:

 

VA rates should be similar lender to lender - with most being around 4.250% on a 30-year fixed. Some I've found to be at 4%. VA used to post an interest rate that all lenders offered, so there would be no difference, but that was eliminated over 20 years ago and now each lender sets their own VA interest rates. The interest rate still varies by the credit score, with the higher the credit score you have the lower the interest rate you can qualify for. So it's still encouraged to get your scores as high as possible, but the difference in interest rate isn't as significant as it is on conventional... where it can be over 1% difference in rate for a 740 score vs. a 620 score, with VA it's more like about a .500% spread in interest rate.

 

I didn't alter his response in any way and I hope this helps you and any other members who have this question as VA posts their "today's mortgage rate without an asterisk".

FICO scores are your calling card to the business world. Build a negative reputation and those doors are hard to open, find that perfect balance of credit responsibility and those doors open when you desire them.
Message 6 of 26
Valued Member

Re: Anyone do VA loans with 580 score

Thank you for this helpful information. It does bring some clarity on how the VA rates are determined!

 

Message 7 of 26
Valued Member

Re: Anyone do VA loans with 580 score

I have been working with sunwest, but no approval as of yet. Each situation is very unique I am sure so I don't think it necessarily means someone with similar scores wouldn't be able to get approval. I'm thinking of trying wells fargo soon, supposedly they go to 600 fico

 

Message 8 of 26
Super Contributor

Re: Anyone do VA loans with 580 score


Zorasmiles wrote:

Jessica,

 

I'm sure Shane will chime back in when he has time but the interim I'd like to share his response to me once in an email:

 

VA rates should be similar lender to lender - with most being around 4.250% on a 30-year fixed. Some I've found to be at 4%. VA used to post an interest rate that all lenders offered, so there would be no difference, but that was eliminated over 20 years ago and now each lender sets their own VA interest rates. The interest rate still varies by the credit score, with the higher the credit score you have the lower the interest rate you can qualify for. So it's still encouraged to get your scores as high as possible, but the difference in interest rate isn't as significant as it is on conventional... where it can be over 1% difference in rate for a 740 score vs. a 620 score, with VA it's more like about a .500% spread in interest rate.

 

I didn't alter his response in any way and I hope this helps you and any other members who have this question as VA posts their "today's mortgage rate without an asterisk".


solid advice as always from shane.....

 

and to clarify..... all scores get 'virtually' the same rate.

the lowest scores get hits for risk

 

Retired Lender
Message 9 of 26
Super Contributor

Re: Anyone do VA loans with 580 score


gabbismommy01 wrote:

I have been working with sunwest, but no approval as of yet. Each situation is very unique I am sure so I don't think it necessarily means someone with similar scores wouldn't be able to get approval. I'm thinking of trying wells fargo soon, supposedly they go to 600 fico

 


Wells Fargo will be a lot tougher than SunWest if you have a 600 FICO.

Mortgages (FHA, VA, USDA, Fannie, Freddie, Non-Prime) since 2002, based in Irvine, CA and lending in all 50 states

Information that is needed to determine if you qualify for a mortgage

Message 10 of 26