Home Buying in Gilbert>Question Details

Steven Diaz, Renter in Phoenix, AZ

What is the Minimum middle credit score required for a VA home loan. Looking to purcahse A.S.A.P, tired of paying someone elses mortgage. (renting)

Asked by Steven Diaz, Phoenix, AZ Thu Jun 9, 2011

I have been repairing my credit since Dec/2010 and only have 2 open collection accounts that can get paid if need be. Not in a hurry to do so if i dont have to. USMC Veteran trying to purchase a home in Gilbert or Chandler area. I already have my COE from the VA.

Help the community by answering this question:


A lot of lenders can do a VA loan with a 580.
7 votes Thank Flag Link Mon Oct 14, 2013
Buying a home and financing it with your VA home loan benefit is an exciting time. Yet not so exciting when the borrowers find out their credit score is too low to qualify for a mortgage. In fact, it's very disappointing. VA loans are more forgiving as it relates to credit scores compared to other loan types but there are minimum standards that the VA requires and it is incumbent upon the VA lender to independently determine the veteran has demonstrated a responsible credit history.

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/
2 votes Thank Flag Link Wed May 13, 2015
For military personnel serving outside the country, it's often difficult to get bills paid on time. Even when service doesn't take you far from home, your credit score may be less than stellar because of the lack of credit if you haven't had the chance to build some credit history. When it comes time to get home financing, you may wonder if your low credit score will stand in the way of getting a VA loan.

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/
1 vote Thank Flag Link Wed May 6, 2015
Hi there,

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.

Semper Fidelis,
Jimmy Vercellino
0 votes Thank Flag Link Mon May 19, 2014
The current credit score most VA lenders in wants is now around a 620 credit score.
0 votes Thank Flag Link Sat Oct 26, 2013
Joel Lobb (NMLS#57916)
Senior Loan Officer
502-905-3708 cell
502-813-2795 fax

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*
Louisville, KY 40222*
Flag Sat Oct 26, 2013
Haven't seen any at 580; baseline I've seen locally has been 620 though there may be exceptions.
0 votes Thank Flag Link Tue Oct 15, 2013
Yes sir. I do have a lender that can go down to 580 for VA in AZ
Flag Wed Oct 23, 2013

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.
Web Reference: http://www.McVinua.com
0 votes Thank Flag Link Thu Jun 9, 2011
There is no minimum credit score required for a VA loan. What is important is what is in your credit report that makes your score low. The 2 open collections is what will most likely disqualify you.

• Maximum DTI for a manually underwritten loan is 46% and veteran must meet the residual requirement with compensating factors (VA has only one ratio)
• Although there is no minimum FICO, the veteran must meet the ratio requirement and have residual income 120% over that required for family size
• VORs or 12 months cancelled checks for the last 12 months’ rental history with no lates
• No derogatory credit within the past 12 months
• Letter of explanation for any derogatory credit and credit inquiries
• 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 veteran’s credit review (regardless of DU approval)
• No down payment assistance programs allowed
• Any VA cash-out refinance cannot exceed 90% LTV/CLTV
Web Reference: http://WeFixRates.Com
0 votes Thank Flag Link Thu Jun 9, 2011
Steven, regarding the post from NonRealtor, I just have to add this information:

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.
0 votes Thank Flag Link Thu Jun 9, 2011
The minimum FICO score is 620 for VA loans.
0 votes Thank Flag Link Thu Jun 9, 2011
Hi Steven,
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
0 votes Thank Flag Link Thu Jun 9, 2011
I can help you with your VA Loan, I have worked with many veterans in the past and close loans on time. You should get your DD214, 30 days of paystubs, 2 months of bank statements, 2 years of tax returns and w-2s to start. Give me a call. Thanks.

Matt Puzz
Licensed Loan Originator
Amerifirst Financial, Inc.
1910 S. Stapley Drive #209
Mesa, AZ 85204
Direct: 602-410-9333
Office: 480-682-6617
Fax: 480-344-3687
NMLS# 213777 AZ LO-0915068
Apply Online: http://www.mattpuzz.com
Web Reference: http://www.mattpuzz.com
0 votes Thank Flag Link Thu Jun 9, 2011

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.

Best Regards,


Ron & Brenda Cunningham
**Recognized in the Phoenix Business Journal as "One of the Top 50 Realtors in the Valley"
0 votes Thank Flag Link Thu Jun 9, 2011
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.
0 votes Thank Flag Link Thu Jun 9, 2011
0 votes Thank Flag Link Thu Jun 9, 2011
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 rktconsult@cox.net or via phone 602 677-9491 Thank You, Richard Troxell LCDR USN (RET), RE/MAX Excalibur Realty
0 votes Thank Flag Link Thu Jun 9, 2011

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.

Adam Parrish
(480) 580-9574
Web Reference: http://azrealtyplace.com
0 votes Thank Flag Link Thu Jun 9, 2011

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
Web Reference: http://www.McVinua.com
0 votes Thank Flag Link Thu Jun 9, 2011
Good Morning Steven,
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.
0 votes Thank Flag Link Thu Jun 9, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer