The VA does not establish a credit score requirement, only that the lender must determine creditworthiness. Lenders use credit scores as an indicator of the likelihood of defaulting on the loan with scores ranging from 300 to as high as 850. The higher the score, the better the credit and while the VA doesn't have a score requirement, most VA lenders do set the minimum at 620 or 640, depending upon the lender.
Click here for more information: http://vastreamlinemortgage.net/loan-process/
The VA may not have minimum credit score requirements, but individual lenders do. It's possible to find lenders who will approve a VA mortgage on a score as low as 600, but most lenders require a credit score of 620 or better. Most underwriting is currently done through an automated system that requires all issues meet the guidelines of the VA and the lender.
Information on Using a VA Loan with Bad to Poor Credit - http://valoanguidelines.org/credit-score-requirements/
The truth is that VA Loans do not have a minimum credit score requirement , however the lender does. The lowest that I have personally seen has been a 600.
My name is Jimmy Vercellino and I would be honored to serve you. I am a United States Marine Corps Veteran and Mortgage Banker Specializing in VA Loans. Feel free to visit my website at http://www.VALoansForVets.com for more information.
I have also put a youtube video together on this very subject you may visit it here. https://www.youtube.com/watch?v=GRqVI-MTLh0
Thank you for your service to our great country.
Matt Puzz responded to your question and he would be a great resource for you. I know Matt will treat you fair, he works for a good company that has options and he is local.
Matt would be a good one to reach to and really know what you need to do to buy a home.
â€¢ Maximum DTI for a manually underwritten loan is 46% and veteran must meet the residual requirement with compensating factors (VA has only one ratio)
â€¢ Although there is no minimum FICO, the veteran must meet the ratio requirement and have residual income 120% over that required for family size
â€¢ VORs or 12 months cancelled checks for the last 12 monthsâ€™ rental history with no lates
â€¢ No derogatory credit within the past 12 months
â€¢ Letter of explanation for any derogatory credit and credit inquiries
â€¢ Note: VA considers open collections as recent derogatory credit; this would count if the collection was reported within the last 12 months. Recent short sale of a previous mortgage or a previous foreclosure for the veteran or the non-purchasing spouse will be a substantial negative issue in a veteranâ€™s credit review (regardless of DU approval)
â€¢ No down payment assistance programs allowed
â€¢ Any VA cash-out refinance cannot exceed 90% LTV/CLTV
Let's say you buy a home for $70,000 (lets say a newer home so you will have less chance of repairs). Your total payments might be $500 a month. Times 7 years= $42,000 spent for payments.
If you rent this same home, you rent payments might be $950 a month. Times 7 year- $78,800 spent on rent.
Here already is a gain of $37,800 (savings) if you bought instead of rented the home. Okay, lets say you have to sell and pay about 8% in selling costs. Well, that is paying $8000 if the home sells for $100,000 in 7 years. Okay. Subtract the $8000 from the $37,800 and you are still ahead $29,800. But then lets not forget that you just added $30,000 from appreciation of the home in 7 years (which is very very possible) so you now have a gain of $59,800 over renting the home. You will also have paid the mortgage down some in the 7 years which you can also add that.
Don't think I can agree with NonRealtors train of thought. I don't think the thousands of investors that are currently buying up the homes on the market would agree either. One agent said their investor has paid cash for 75 homes. Our investors are picking up homes, some for flipping (selling right away and making money), and some for holding for the market to improve. With prices below replacement costs, most people believe they are going to see some great returns on their money. And, rents are suppose to be increasing since the demand is going to be higher with the large number of people with credit issues due to the increase of foreclosures and short sales.
I wouldn't advise buying and selling within the year, although if you get a great price, do a little fix up, then like our investors that flip homes you might make some money. The last transaction we did for a flip for our investor, he make $30,000. Not bad.
When you have a mortgage, you are renting the money, so you are still a renter. Think of it like a 30 year lease. If you keep the lease for 30 years and pay ontime each month, the house is yours. If you want to move, it will cost you at least 7-10% of the value of the house to sell it (and that's assuming the house didn't lose thousands in value). If you're not going to be there for more than 7 years, it may be better to rent, then you have mobility, you don't have to fix anything, and you're not going to lose thousands of dollars if you need to relocate. Good Luck
Licensed Loan Originator
Amerifirst Financial, Inc.
1910 S. Stapley Drive #209
Mesa, AZ 85204
NMLS# 213777 AZ LO-0915068
Apply Online: http://www.mattpuzz.com
The best thing for you to do is to speak with a qualified lender that does VA loans. The VA will allow for compensating factors and the loan can be reviewed by the VA if things would be questionable.
Feel free to give us a call, we would love to help you through this process.
Ron & Brenda Cunningham
**Recognized in the Phoenix Business Journal as "One of the Top 50 Realtors in the Valley"
Not all mortgage Brokers/Lenders are equally skilled at getting VA loans done quickly while working through any credit problems. I have been especially impressed by the service provide to my VA Buyer clients by Robyn Kloner at Bell Mortgage 480-753-6100. She or Lisa will be able to look at your situation and make recommendations.
First of all THANK YOU for your service. Here is a link to a website that will provide you with answers to some of your questions: http://www.valoaninfocenter.com/va_loan_credit_requirements.html
My recommendation is that you should contact a reputable VA Loan Lender who can address your specific questions and can access your Credit report as well. IAs a Veteran myself, would like to assist you in your quest to purchase a home. Please contact me at email@example.com or via phone 602 677-9491 Thank You, Richard Troxell LCDR USN (RET), RE/MAX Excalibur Realty
The other agents are correct, the best place to start is by speaking with a mortgage consultant. They'll be able to provide you with solid info to help determine your purchase power. There are many reputable lenders well qualified to work with you on a VA loan. I would be happy to provide you with a list of a few that I work with on a regular basis. Feel free to contact me for more info.
The best thing you could do is select the right partners to begin this quest. A buyers agent (Realtor) in the area you want to live and then collectively a Mortgage Banker/Broker for your loan. You then will have the pieces coming together to successfully navigate the mortgage market and the real estate market in this pursuit.
I would suggest a full time Realtor with experience as the market today has more twists and turns than ever.
Arizona Homes for Sale by a Guy from Iowa
I am USAF veteran so very familiar with VA loans. Strongly recommend that you speak with a VA loan officer to review your specific financial situation. Then you will be given the items that need to be resolved.