Va home loan with 580 credit score

Asked by Covingtons18, , Thu Aug 16, 2012

I have a 580 credit score and make over 70k a year with NO DEBTS!! This is why my credit score will not rise!! I want to know if there is any reputable lenders that would finance me with the mortgage being less than 15% of my income

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Andrea Gomez, Other Pro, San Antonio, TX
Mon Jul 15, 2013
You can get an VA loan with a 580 middle score with some lending institutions. I would recommend finding a broker or service to help you locate a reputable lender that can approve your loan at a decent rate. I have client's get a great rate on an FHA and VA loan with The Lenders Network, they will help you find a lender.
7 votes
My Loan Is Your Loan has a direct lender who works with buyers down to a 550 fico score for FHA and VA loans. 580 and above are the big scores if you only want to put 3.5 percent down, anything below 580 you will need 10% down to purchase. They do offer VA loans for veterans down to a 550 credit score with no down payment needed. You can call 866-796-1431 open to 10pm Central or go to to see all conditions to apply.
Flag Wed Aug 30, 2017
, ,
Sat Aug 25, 2012
Good afternoon Covingtons18 and THANK YOU for your Service to our Nation,

Your score is 580 NOT because you have no debts; there are serious issues on your credit history that you need to address before you take on the responsibility of homeownership and mortgage financing.

First, settle any outstanding debt. If you owe money on collection accounts, charge-offs and/or judgments, make payment arrangements and get these accounts paid promptly.

Next, begin rebuilding your credit. If you have current accounts with good payment histories, or even some previous late-payment-blemishes, make sure you continue to pay those accounts on time. If you do not have any existing credit accounts then you'll need to establish several in order to create a viable credit history.

I have found that CONSUMER ACTION is an excellent resource for objective advice on all things credit related. You'll find free and sincere advice on everything from settling collection accounts to rebuilding credit to building credit from scratch on their website.

Beware of anyone offering to "repair" your credit! The Federal Trade Commission issued a stern warning last year that such offers are scams. Find more from the FTC HERE:

The best way to buy a home is to have a decent credit history combined with sufficient Income and Assets for a home purchase.

The best way to have a decent credit history is to settle negative outstanding obligations and pay all your bills on time for at least two years.

Trevor Curran
NMLS #40140
1 vote
Invstnlfp, Home Buyer, New York, NY
Thu Aug 4, 2016
I work for a direct lender in the mortgage industry who offers FHA VA, and USDA loans in 47 states down to a 550 credit score. Are lowest score we accept for government loans are 550 when most lenders require a 620 and brokers a 580. You need to have two years of income with a score over 550 with bankruptcies discharge date 2 years and over. We have basic guidelines and a pretty easy process. Feel free to text me or call me anytime up to 10:00pm Eastern with any questions.
Brian Young 214-797-3479
0 votes
what is a link to your companies website?
Flag Wed May 24, 2017
matt, , Dallas, TX
Sun Feb 16, 2014
RH Lending offers VA & FHA Financing with credit scores down to a 580. Leonard Ujkic is your go to guy.

Leonard Ujkic
0 votes
Michael Clut…, , Oklahoma City, OK
Wed Jan 23, 2013
In most cases lenders will not finance a VA loan with a credit score below 620. You are almost there but still have some work to do on your credit. My suggestion to rebuild your credit is to get a secured credit card from your bank. Charge something small (a tank of gas) once a month and when the statement comes to you in the mail pay off the balance. This will help you build a good credit history and will improve your score over a period of time. There are not many quick fixes when it comes to credit so be weary of that kind of advice. The "authorized user" angle is known to lenders and most likely will not help you. Unfortunately rebuilding credit is a process.
0 votes
John Sacktig, Agent, New Jersey, NJ
Fri Aug 17, 2012
I just did a 100% financing with a 5k giveback to the buyer for closing costs with a client with 550 credit. No problem.

You'll need a Certificate of Eligibility (COE) before you can get a VA-backed loan. Get that done first. The VA guidelines are the same for all banks / brokers so get your best deal, get a referral from your realtor on who can get it done and go find a house.

Good Luck!
0 votes
Is this still possible to do in 2014? I was approved for a brand new manufactured home, but they require 35% down payment. I have my COE with $36K available. How do I go about it at this point?
Flag Thu Dec 25, 2014
Audra Brown, , Oklahoma
Fri Aug 17, 2012
One thing that you can do if you don't have any open trade lines, is have a spouse or someone you live with add you onto their credit card accounts as an authorized user. This builds your score almost instantly. You should only need a 620 for a VA loan, so you're not too far away from the score you need. Let me know if you need the info of a good lender.
0 votes
Covingtons18, Home Buyer, ,
Thu Aug 16, 2012
I have been denied pre approval at nfcu. Which I figure was my best bet, I am a first time homebuyer do I don't know if there are options for my situation! I found a great house listed well below appraisal value and would hate to pass up such a great deal.
0 votes
, ,
Thu Aug 16, 2012
The VA guidelines have been really tightening recently, and seem to mainly be based on credit now. I would guess you'd have trouble with a VA approval, but I'd suggest putting some money down and doing an FHA loan, or rebuilding some good credit and trying again in a few months. I hope this helps.

Will Koenig
0 votes
Ron Thomas, Agent, Fresno, CA
Thu Aug 16, 2012
You don't have to be in the Navy, (or been in the Navy; although I would think better of you if you had).
You can probably find them on-line.

Your score isn't great, but your Debt to Income ration must be good.

Thanks for serving and good luck
0 votes
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