topic Re: Anyone do VA loans with 580 score in Mortgage Loans

Anyone do VA loans with 580 score

gabbismommy01 — Tue, 15 Jul 2014 01:39:29 GMT

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

Re: Anyone do VA loans with 580 score

ShanetheMortgageMan — Wed, 16 Jul 2014 08:10:31 GMT

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.

Re: Anyone do VA loans with 580 score

Anonymous — Sun, 20 Jul 2014 01:16:38 GMT

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

~ModCut, pizzadude, MyFICO moderator

Re: Anyone do VA loans with 580 score

gabbismommy01 — Thu, 17 Jul 2014 04:13:22 GMT

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

Re: Anyone do VA loans with 580 score

Anonymous — Wed, 13 Aug 2014 13:28:31 GMT

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

Re: Anyone do VA loans with 580 score

Zorasmiles — Wed, 13 Aug 2014 13:42:10 GMT

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".

Re: Anyone do VA loans with 580 score

gabbismommy01 — Tue, 02 Sep 2014 18:23:30 GMT

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

Re: Anyone do VA loans with 580 score

gabbismommy01 — Tue, 02 Sep 2014 18:25:44 GMT

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

Re: Anyone do VA loans with 580 score

DallasLoanGuy — Wed, 03 Sep 2014 02:52:19 GMT

@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

Re: Anyone do VA loans with 580 score

ShanetheMortgageMan — Wed, 03 Sep 2014 02:57:01 GMT

@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.

Re: Anyone do VA loans with 580 score

gabbismommy01 — Sat, 06 Sep 2014 05:03:19 GMT

Thanks for the info Shane! Do you know why Wells seems to be more difficult?

Re: Anyone do VA loans with 580 score

Pharoe33 — Tue, 09 Sep 2014 19:05:13 GMT

Interesting, I wonder if a score of 580 would ultimately effect the loan amount approved for as it would the interest rate.

Re: Anyone do VA loans with 580 score

ShanetheMortgageMan — Wed, 17 Sep 2014 01:58:39 GMT

@gabbismommy01 wrote:
Thanks for the info Shane! Do you know why Wells seems to be more difficult?

They are just a much more conservative lender.

Re: Anyone do VA loans with 580 score

ShanetheMortgageMan — Wed, 17 Sep 2014 01:59:55 GMT

@Pharoe33 wrote:
Interesting, I wonder if a score of 580 would ultimately effect the loan amount approved for as it would the interest rate.

Well a higher rate would allow you to qualify for less, so indirectly it would impact the amount you could qualify for. With a 580 score you may not be able to get an automated underwriting approval and would need to be manually underwritten, which would further limit the amount you could qualify for (automated approvals can approve higher debt ratios than manual underwriting can).

Re: Anyone do VA loans with 580 score

gabbismommy01 — Thu, 18 Sep 2014 05:41:31 GMT

Hi Shane,

Do you know what the debt ratios typically are for VA loans for manual vs. automated underwriting? Thanks!

Re: Anyone do VA loans with 580 score

ShanetheMortgageMan — Thu, 18 Sep 2014 16:17:24 GMT

For automated underwriting it's unlimited, it all goes by the residual income calculation VA requires.

For manual underwriting it's typically limited to 41%.

Re: Anyone do VA loans with 580 score

Anonymous — Sun, 28 Sep 2014 21:18:04 GMT

Yes First Mortgage will do a VA loan with no minimum fico. If you're still interested I can give you my contact information depending on what state you are in.

Re: Anyone do VA loans with 580 score

Anonymous — Sun, 28 Sep 2014 21:20:24 GMT

If you have any issues let me know we have no minimum fico requirements for VA.

Re: Anyone do VA loans with 580 score

Anonymous — Wed, 01 Oct 2014 16:02:25 GMT

I am in PA and started this journey almost a year ago with my scores right around a480- 511 - now FICO scores are - 606 - 579 - 583 - Need to get a pre-approval on a VA loan ASAP in pennsylvania can anyone point me in the right direction , Waiting on a Mid-land deletion but need to get a pre-approval in the owners hands to secure me and my wifes dream home .Loanguru can you help in PA ?

Re: Anyone do VA loans with 580 score

Anonymous — Sat, 04 Oct 2014 08:56:47 GMT

@Anonymous wrote:
If you have any issues let me know we have no minimum fico requirements for VA.

Welcome to the forum. Before posting, please review the thread for mortgage professionals: http://ficoforums.myfico.com/t5/Mortgage-Loans/Real-Estate-and-Mortgage-Pros-Please-Read-Before-Posting/td-p/563019

Solicitation or promoting your company will have your posts removed.

Lexie, myFICO Moderator