Question Details

Sean Williams, Home Buyer in deployed

i have a credit score of lil over 600, i dont want to put a down payment on a house, could i receive a VA

Asked by Sean Williams, deployed Sat Nov 24, 2007

loan, yes im in the military for 10 years

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Yes I am surprised as well. One of the people I am speaking of this will be thier first home owner occupied. The individual has six months of reserves. 730 credit score and is a single infantry officer in the army. I am not a mortgage broker or specialist so I give recommendations in sets of 3's (the third is a civilian mortgage company), but I first recommend my poeple to use banks that they already have a relatinoship with.

This begin happening the same moment that these banks also began telling me and others that they are not giving out SBA loans. Even the two military banks I mentioned began saying that about three weeks.

I wont say never, but again I am interested to speak to anyone who has succesfully found 100% financing in the last week or so for a first time buyer, or a second home especially.

Another point I wanted to get deeper into as well. The fees with the VA loan I found were pretty large, especially on buying a cheaper first time home. I found that whether the home was 100k or 300k the fees were a flat rate, so percentage wise you could be setting yourself up for an negative equity situation depending on how the home is bought.
0 votes Thank Flag Link Wed Dec 3, 2008
I would say on a score in the low 600's could possibly qualify for a VA Loan. Being that a low 600 credit score is about the minimum typically the VA will allow, they will want to make sure all other aspects of your file are pretty strong. For example, reserves in the bank (one to two months of PITI), lower debt to income ratios, and good residuals. The lower the credit scores, the more conservative the Underwriter will be when he looks at your file. The higher the credit scores, the more lenient he will be when approving your file.

There is a more than just a credit score that a Lender or VA will look at to qualify a veteran. I have qualified many veterans in the past with low 600 credit scores. It is all case by case, but I would definitely pursue trying to get approved for a VA loan. A VA loan is definitely the best 100% program out there right now, and in alot of cases the only option for most these days.

Raymond....I am very surprised to hear that you were not able to get military buyers with 730 credit scores approved for financing over 95%. When you say military investors, are those buyers buying rental properties, or primary residences? A 730 credit score is a very solid score and they should not have a problem getting approved for a loan at 100% when buying their primary residence. Now Navy Federal Credit Union is a bank or credit union and they will service that loan for the long haul, and if they have chosen as a credit union to not do loans over 95% regardless of the credit score, then that is an internal guideline, but a mortgage bank that sells their loans to other big investors, will do 100% all day for a veteran with a 730 credit score as long as they meet the other standard guidelines of the VA.
0 votes Thank Flag Link Tue Dec 2, 2008
Its possible but dont believe for a second that a VA loan is some magical get of jail free card that allows you to get around needing to prove to some degree to financial institutions that you will pay.

I am curious however how today's economic events will play into such things as VA loans. I have several military investors that I represent with credit scores over 730, and I currently cant get them financed above 95%. That is going through USAA and Navy Federal.

my email is raymond.k.roberts@phaistosgroup.com, I would be interested in both helping you and also knowing the outcome fo you getting a VA loan.

I personally head out in April, when do you get back?
0 votes Thank Flag Link Tue Dec 2, 2008
You should be able to qualify....and some states, such as CA, have additional options for veterans. Your local lender should be able to help!
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Sat Nov 24, 2007
Cindi Hagley…, Real Estate Pro in San Ramon, CA
MVP'08
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VA is for 100% financing. VA's were not so popular the last few years because there were so many better loans that offered 100% financing without the fees associated with VA. With all the changes in the mortgage world VA's are coming back. I am working with a buyer right now that is going VA.

You really need to contact a local trusted lender to have them pull your credit and give you a final answer. They pull a different credit report than we can pull for ourselves. Additionally, their reports merges all three credit bureaus. Your median score will be used to determine your qualifications.

If you do not have or know a trusted lender then please ask your agent for a recommendation. Utilizing the services of an agent is 100% free for buyers and can save you lots of time and money!

Best of Luck!
0 votes Thank Flag Link Sat Nov 24, 2007
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