Need a VA loan with a 575 credit score

[Anonymous]

Hi everyone,

I need help, my husband and I are looking to buy a home. The problem is his median credit score is 575 and has not improved in 4 months. Is their anyone who can help us get a VA loan in Michigan for at least $250,000. Also he already has a secured credit card and i've added him to my credit card as well. Thank you for your time

[frugalQ]

what are VA score requirements?  have you scoured over his credit report to see what's dragging his score down?  it may be more than just lack of revolving credit.  does he have recent lates or recent collections?

[Anonymous]

Well from what I was told by a broker that the VA do not have a minimum credit requirement, it's the lenders that determine the credit score requirement. He has a repossession for $2300 from 2014 and a T-Mobile bill for  $100 that's on his report, which T-mobile says they have no record of him owing them anything. We did not pay off the repo because the broker said not to at this time because it would lower is credit score.

[frugalQ]

has the broker said whether they can do the loan?  I agree with not paying off the repo...paying it off will reset the time clock and negatively impact your score.  be prepared to pay it off at closing though...it may be a condition.   is the repo over 12 months old?  He may need to be passed the 12 month mark before qualifying for a home.

unfortunately, it's the repo that's killing his score, and that will only recover with time.

if the tmobile collection is not valid, have you asked the CA to remove the collection?  that may help boost his score some.

[Anonymous]

Yes the repo is over 12 months and we have not tried to get the T-Mobile bill removed. The broker can't do the loan he needs a minimum credit score of 580, so we desperately need 5 points. His score has been the same since December of last year unfortunately.

[frugalQ]

you should try to get the tmobile collection removed....especially if it's not valid.  ask tmobile to have the CA update it.  but, do not dispute it through the bureaus.

[Anonymous]

Okay thanks i'll try that

[frugalQ]

and, find another broker to use...if he/she was not willing to put forth the effort to provide guidance on what to do to get your scores up 5 points, he/she is not worth your $$$.

just my opinion.

[StartingOver10]

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@frugalQ wrote:

and, find another broker to use...if he/she was not willing to put forth the effort to provide guidance on what to do to get your scores up 5 points, he/she is not worth your $$$.

just my opinion.

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^^^agree with FrugalQ on all her posts above.

Don't use a broker IMO/IME. Use a mortgage banker or correspondent lender that does nothing but mortgages. You need real help with that mid-score. I am suggesting to not use any broker at all. Use someone that has access to many lenders but also underwrites and funds their own loans. This way when the LO tells you X, Y, Z it is much more likely to be real and not an empty promise.

Note:  not all brokers are bad -a good broker is worth their weight in gold. Finding a good broker is extremely difficult because they all talk a good game and unless you are extremely familiar with the mortgage process it is exceptionally difficult to determine the brokers actual ability. OTOH a mortgage banker or correspondent lender has skin in the game. They aren't going to tell you X and then provide Y without risking their license.

[MarineVietVet]

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@Anonymous wrote:

Hi everyone,

I need help, my husband and I are looking to buy a home. The problem is his median credit score is 575 and has not improved in 4 months. Is their anyone who can help us get a VA loan in Michigan for at least $250,000. Also he already has a secured credit card and i've added him to my credit card as well. Thank you for your time

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Hello and welcome to myFICO.

You don't say which one of you served ( Perhaps you both did?) but you both sacrificed and I appreciate that very much.

Believe me I understand wanting to have your own home but my advice is to wait a year or two and repair/rebuild your credit profile(s).

A higher score of just a few points can possibly save you thousands of dollars in interest over the life of a mortgage loan.

I know a year sounds like a long time but it will pass quickly and you can use that time to improve your situation.

In any case I wish you and your husband only the best!!!