Question Details

Carlton Lock…, Renter in Atlanta, GA

looking to use Va home loan certificate. but have low credit score. what can I do?

Asked by Carlton Lockett, Atlanta, GA Tue Oct 23, 2012

Help the community by answering this question:


Talk to the Navy Federal Credit Union;
If you weren't in the Navy; we'll forgive you.
They take all branches; see how big we are.

Good luck and may God bless
1 vote Thank Flag Link Tue Oct 23, 2012
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
0 votes Thank Flag Link Thu Nov 14, 2013
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