If you need more detailed documentation on VA Loan Requirements - http://valoanguidelines.org/credit-score-requirements/
There's been a tiny bit of a crunch in the mortgage industry, especially for those people with low FICO scores.
What I hear you asking is, "Who'll loan money to a person with a room temperature credit score?"
The answer is NOBODY, except private, hard-money lenders who'll charge huge up-front fees and interest rates above 18%.
If that's your gig, there are plenty of people out there who'll sell you a place on contract and take the place back when you can't make the payments.
Your first priority is getting your FICO score up.
Rent a cheap place. Live on pasta and water. Pay your bills on time. Save some cash.
Once you're above 600, then come back and ask for a good mortgage lender referral.
First of all, let’s understand the VA’s role in the VA loan process. The Department of Veterans Affairs oversees the program and guarantees a portion of each loan in case of default. But the VA does not issue loans, and the agency does not enforce credit score minimums. Both of those duties are handled by an individual VA lender.
Most VA lenders do use credit score benchmarks. Applicants with scores below a lender’s benchmark usually can’t be approved for VA financing. That minimum will vary from lender to lender, but most VA-approved lenders, including Veterans United Home Loans, are looking for a credit score of at least 620.
For More Click Here :http://vastreamlinemortgage.net/loan-process/
We can also give you tips on how to get to a 580 if you are close!
Our bank has been open since 1905 and lends in all 50 states, contact me through my profile if you have questions!
Just pick up the phone and call your local banks, big and small. That's the easiest way.
I found your question quite humorous and (apparently ineffectively) attempted to inject some fun into my response. I see you took it as inconsiderate and unprofessional.
Would you have preferred to get a response that's less than honest but makes you feel good?
If you're looking for someone to blow smoke up your rear and tell you that everything is just peachy...that your friend will sail through underwriting with a 470 FICO and 3 straight years of slow/no pays, that's not very professional either. Nor is it ethical, in my opinion.
While I am very empathetic to your friend's situation, it doesn't substantively change the truth contained in my first answer.
Elderly or young, healthy or sick, disabled or able-bodied, VA loan or conventional, veteran or not... with bad credit history and a low FICO score, there's not a bank out there that'll touch the deal unless he's got a SUBSTANTIAL downpayment. No way. No how.
Let's paint the picture again, shall we?
We have an elderly, disabled person with a multi-year history of illness that's affected his ability to pay his bills on time.
Would you loan money to someone with that history? It's not personal, RJ. It's business. To a bank, your friend is not much more than a collection of income, debt, length of credit, amount of credit, and credit score.
No amount of feeling sorry for a person will change that. I wish it could, but it won't.
VA mortgage benefits that only come with a VA mortgage:
Easier qualification standards
Less strict credit and income standards
No down payment required
Bad Credit Score VA loans Down to 550!
The VA does not have a minimum credit score requirement. The VA simply requires that Florida mortgage applicants represent a satisfactory credit risk. But ultimately VA Florida mortgage lenders issue VA loans with a minimum 580 credit score.
How has his credit history looked in the past year? Does he have proof of rent payment for 12 months? Will these medical conditions be subsiding or would the doctor say it could happen again? Does he have at least a 500 mid credit score? If the letters of explanation match up to medical circumstance and we have documentable proof, this loan is VERY doable under our VA guidelines. I work for one of the nation's largest bankers and this is very possible. We go down to 531 credit scores on FHA purchase loans and 500 on FHA refinances.
To Joe: I'll start taking 100% of those referrals that you have misknowingly sent away. It seems like the banking industry has gotten to you... I feel your pain.
My name is Jake Johnson and my email is firstname.lastname@example.org
Rj, without specifics on the credit situation, it's impossible for any of us to give you any useful advice. Renting may be the right choice but we don't know that availability of rentals that meet your family members needs. Have him try Wells Fargo or some other institution to see where he is at. Good luck.
Thank you for such a considerate, eloquent, and professional response.
To others wishing to be helpful, I am asking this question on behalf of the family of an elderly disabled veteran who has experienced financial problems over the past few years due to his medical condition who would like to apply with a lender directly.