Financing in Long Beach>Question Details

Themaciasfam…, Renter in Long Beach, CA

Can a veteran be approved for a VA loan with very poor credit?

Asked by Themaciasfamily, Long Beach, CA Tue Aug 7, 2012

(current FICO is 480) And/or a BK?

Help the community by answering this question:


I know of a Lender that can approve bad credit VA loans with poor credit scores as low as 580, in some cases 560..
2 votes Thank Flag Link Thu Oct 10, 2013
Most lenders will want a min. 620 fico...others can be as high as 640. Find a reputable credit restoration company to help guide you to improving your scores...
Also I believe you will have to wait 7 yrs after the discharge of BK 7, 1 yr after BK 13 with court permission and on time payments...
Hope this helps.
Dan Paladin
1 vote Thank Flag Link Tue Aug 7, 2012
The waiting period after bankruptcy for a VA mortgage is outlined in the web reference below:
1 vote Thank Flag Link Tue Aug 7, 2012
You just need 2 years after the BK and it is possible with as low as a 500 score. But my first suggestion is to give a VA specialist a call and have them run though your credit with you and see if there are any ways to quickly bump up your score. There are usually many ways. I would be happy to assist.
Web Reference:
0 votes Thank Flag Link Thu Oct 10, 2013
The primary issue I've found that most Veterans have in obtaining their VA loan isn't the credit score itself but the debt to income ratio that's reducing the score. I tried to obtain financing for a VA loan for a client and he had a 695 credit score but very high debt to income and the banks turned him down repeatedly until he was able to reduce his debt to income.
0 votes Thank Flag Link Thu Oct 10, 2013
Even though the VA guidelines say that a credit score is not required... Good luck finding a lending institution that will do the loan without a minimum 620-640 fico. The industry guidelines change from time to time and it may be that somewhere in the distant past that credit scores for a veteran were not required. Nowadays everything is full documentation and having a decent credit rating will mean the difference between getting that loan or not getting that loan.

Alex Montelongo/Broker
Coldwell Banker Star Realty
460 Pacific Coast Hwy.
Seal Beach, Ca. 90740
562-810-7387 cell
DRE Lic #01456982
0 votes Thank Flag Link Sat May 4, 2013
Even as a vet you will have to qualify for your VA loan.

If your scores are under 620, you will need to work on improving them before you attempt to apply for your VA loan.

Best Of luck to you!

Kawain Payne, Realtor
Prudential California Realty
0 votes Thank Flag Link Thu May 2, 2013
You will need to talk to a lender about this. I believe most lenders will require a 580 or higher credit score and it will also depend on how long ago the BK occurred. In any case they will be able to counsel you on how to improve your credit score at the same time. If you need some good lender referrals, please contact me at 714-343-9470.
0 votes Thank Flag Link Tue Aug 7, 2012
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