Financing in Hudson>Question Details

Loretta J. B…, Real Estate Pro in Palm Harbor, FL

VA loans--how low can credit score go?

Asked by Loretta J. Buckner, Broker/CDPE, Palm Harbor, FL Tue Jan 20, 2009

Looking for general VA loan answers--what documentation will be required, what debt-to-income ratio for 100% disability veteran?

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Va's Guidelines is 43%, BUT they will take a higher score with compensating factors.

The lowest I'm seeing any lender take is 550.

I am a mortgage broker. If I can be of service, please let me know!

Martin Smith

Precision Funding
877-238-6324 Ext 704
513-536-7184
877-238-6324 FAX
MSmith@PrecisionFundingUSA.com
http://www.PrecisionFundingUSA.com
0 votes Thank Flag Link Tue Jan 20, 2009
Lori is right that there is only one ratio - I've seen conflicting percents from 41%-43%. I do know they have a manual underwriting were utilities are accounted for in your ratios for a new home based upon square footage of the house etc.
VA is different about the credit score too - they will have to have a clean history for 12 months but no score minimums.
Over 10% Disabled the funding fee gets waived.
They need to have the eligibility document for VA loan which is the only thing different from regular documents.
0 votes Thank Flag Link Tue Jan 20, 2009
VA really doesn’t have a credit score minimum.. They do have to be manually underwritten, and they are not as lenient as FHA. VA only uses one ratio (unlike FHA who uses a front and back end) UW usually want to see the total ratio under 50%.

You will need your CEO (certificate of Eligibility) your DD214, and normal income docs.

The disability only effect your VA Funding fee ( Usually 2.15% for first timers) not the loan process.
0 votes Thank Flag Link Tue Jan 20, 2009
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