Most lenders in today's market are limiting VA to 620 and above (with 640 and above being the norm). Yes, there are lenders who will finance below the 620 threshold; however, the rates and pricing (cost to get the rate) is pretty prohibitive. I find that (most of the time) it makes more sense to help the Veteran improve their scores so he/she can qualify with a higher score. Often times, all it takes is paying down an account or two a bit and doing a rapid rescore to improve the score.
VA loans are among the most lenient in the mortgage industry...and, ironically, have the lowest default rates of all loans. There is incredible opportunity for anyone with VA eligibility for a number of nuances to the basic VA loan. For instance, a VA EEM (energy efficient mortgage) will allow you to roll 6K into the loan (over and above the 100% loan to value) for various energy improvements. This loan works for either purchase or refinance.
I am a USACares.org certified VA lender and have taken the coursework and made the commitment to ensure our Veterans interests are always paramount in the mortgage process. Let me know if I can answer any further questions for you. Best of luck.... more