topic Re: VA Loan qualification with 550-600 credit range in Mortgage Loans

VA Loan qualification with 550-600 credit range

Anonymous — Mon, 29 Oct 2018 20:42:15 GMT

Is it possible at all? What kind of voodoo do I need to do to bring this up enough to get a VA loan?

Re: VA Loan qualification with 550-600 credit range

Medic981 — Mon, 29 Oct 2018 22:05:23 GMT

Welcome to the myFICO forums!

Do you know what your current FICO mortgage scores are? If so, what are they?

Re: VA Loan qualification with 550-600 credit range

Anonymous — Tue, 30 Oct 2018 14:22:07 GMT

The VA doesn't require a specific credit score in order to qualify. It is the lender who has the minimum requirement. My advice would be to get your credit report and identify potential issue that would need to be address in the mortgage process. This can be difficult as you may not know what the lender would point out however, derogs such as missed payments and collections, public records etc would be things i would start with.

I am in the process of doing this with my lender which, currently 1 items remains. The lender I went with i believe had a 500 minimum credit score for VA Loans. This lender in partiuclar does a preliminary underwriting up front which identifies the issues which needed to be addressed and gives you time to correct them or provide documentation. Some of the issues were taken care of by the loan processor (majority were verifications) and some of which i needed to provide documentation. The advantage to this is i know up front what needs to be addressed instead of waiting until closing in order to find out i was denied or approved.

Re: VA Loan qualification with 550-600 credit range

homeloanexpert — Sat, 03 Nov 2018 13:38:42 GMT

With your scores, you should be able to get qualified providing you've managed to keep your credit free of late payments in the past 12 months, have a 12 month recent rental history with no 30 days lates, and can pull off at least (1) month house payment in reserves at closing. My best recommendation is to speak with an experienced Loan Officer especially in VA loans. Most lenders can go down to 500 on VA's, but the determining factor is the AUS (automated underwriting system) Findings. The AUS will give us the road map to a set of keys. The AUS tells the lender what documentation will be needed in order to get the VA to insure the loan so we can fund it. BTW, thank for your service my fellow Vet!

Best wishes to you!