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Can we qualify for a VA loan with a 580 credit score

New Member

Can we qualify for a VA loan with a 580 credit score

Hello, my spouse and I are hoping to qualify for a VA loan with atleast  580 credit scores. Our scores range in the 590's to the low 600's. Tne lender we were working with stated that we needed a 620. We have paid off our collections as instructed by the lender and opened a new line of credit which we couldn't have donw before due to the low score however our scores haven't increased as projected. We would really like to move forward now. Does anyone know of a lender that will work with us?

32 REPLIES
New Member

Re: Can we qualify for a VA loan with a 580 credit score

I've seen some say as low as 600, not sure about 580.  Have you paid down ALL credit cards UNDER 10% of credit limit ie: $1000 credit card, pay balance down to less than $100 when it reports to credit bureau.  We did this will all my husband's credit cards and gained 62 points in 30 days.

Established Member

Re: Can we qualify for a VA loan with a 580 credit score

I was pre approved yesterday scores they got when my credit was pulled were 587 589 and 607

Fico8 Ex 585 Tu 579 Eq 576
VS3.0 Ex 594 Tu 599 Eq 606
As of 24July17
Established Member

Re: Can we qualify for a VA loan with a 580 credit score

Interested in this topic as well. We were preapproved for VA loan even though my mortgage FICO scores are in the mid 500s. (561/564/591) Lender said it wouldn't be a problem, but he is having us work with their credit repair people to get it up before we close. I am worried that if it doesn't get much higher we may not get final approval.

 

Has your lender said anything about a minimum score needed for closing?

Established Contributor

Re: Can we qualify for a VA loan with a 580 credit score


VAbuyer wrote:

Interested in this topic as well. We were preapproved for VA loan even though my mortgage FICO scores are in the mid 500s. (561/564/591) Lender said it wouldn't be a problem, but he is having us work with their credit repair people to get it up before we close. I am worried that if it doesn't get much higher we may not get final approval.

 

Has your lender said anything about a minimum score needed for closing?


Hi VAbuyer,

 

Did your lender tell you what they require for a minimum mid score?

I think you're right to be concerned about what's going to happen to your final approval if your scores don't come up.

 

The concern I have is lenders don't send people to credit repair that are pre-approved, we send them to credit repair so that we can get them pre-approved.

If your lender managed to get your loan approved through an automated underwriting system (AUS) with your scores right now then I would say you're probably safe but the problem with that is this. I have had clients with 640 + scores that couldn't get approved through the AUS & had to go through a manual underwrite so unless the lender has an approval through an AUS right now, they can't be certain, with any degree of accuracy, that there won't be any problems.

 

You should consider getting a 2nd opinion.

 

Good luck.

National Mortgage Banker.
VA Mortgage Expert.
Frequent Contributor

Re: Can we qualify for a VA loan with a 580 credit score

+1 VALoanMaster

 

When we signed our contract, my husbands name is on the preapproval only because he had the better credit profile. My mid-score at the time was 547, and we were trying for an FHA. So in our case we were able to move forward with the buying process which allowed me to work on my credit profile. 

FICO8 Scores - 625TU / 640EQ / 649EX
On Mortgage Journey
Starting Mortgage Scores (Feb 17) 523EQ / 547TU / 564EX
Mortgage Scores Aug 17 624EQ / 649TU / 650 EX
New Member

Re: Can we qualify for a VA loan with a 580 credit score

We can close VA loans with a 580 no problem.  I'd definitely be interested in seeing what is on your credit though because lower scores kill your rate....I just ran your scenario, and I am at 5.5% with a 580 score.  620 score gets you 4.5% and 680 gets you 3.75%.  Keep in mind if you make six payments on time you can do a streamlined refi and lower your rate to the 3.75% anyway (or whatever rates are in six months!).  

Re: Can we qualify for a VA loan with a 580 credit score

KJade, can you please message me more about which company you are with?

New Member

Re: Can we qualify for a VA loan with a 580 credit score

In Missouri looking for a lender that works with a middle Fico score of 580-- VA loan, COE in hand

Established Contributor

Re: Can we qualify for a VA loan with a 580 credit score

I can
National Mortgage Banker.
VA Mortgage Expert.