-
VA LOANS WITH LOW CREDIT SCORES
What is the credit score guidelines on VA loans. What is it that Veterans United says their minimum credit score requirements is 620 and CrossCountry Mortgage says their credit score requirements is 580? Yet other lenders want a 640 credit score on VA loans. I read a blog on GCA MORTGAGE GROUP And it says that Gustan Cho Associates can do VA loans with credit scores down to 500 FICO. SO what is the skinny and the minimum credit score for VA LOANS?
-
1 Reply
-
VA loans are known for their lenient credit requirements compared to other types of mortgage loans. While there’s no official minimum credit score requirement set by the Department of Veterans Affairs (VA), most lenders will have their own credit score requirements. Veterans can qualify for VA Loans with credit scores down to 500 FICO. There is no miminum credit scores to qualify and get approve-for VA loans. The team at GCA Mortgage Group can originate and approve VA loans with low credit scores and down to 500 FICO. However, to qualify and get approve for VA loans with low credit scores and down to 500 FICO, you need to have been timely on all of your payments for the past 12 months.
Some lenders may approve VA loans for borrowers with credit scores as low as 580, but keep in mind that a lower credit score may result in higher interest rates and stricter approval criteria. Lenders may also require compensating factors, such as a stable income, low debt-to-income ratio, or a larger down payment, to offset the risk associated with a lower credit score.
It’s important for borrowers with low credit scores to shop around and compare offers from different lenders, as eligibility criteria and interest rates may vary. Additionally, working to improve your credit score before applying for a VA loan can increase your chances of approval and help you secure more favorable loan terms.