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VA home loan with credit score of 636

I have a certificate from the VA and was wondering about finding a lender for a home loan using my VA home loan benefits. But when I wnet into my local bank they look at my credit scores and told me they could not help me becuase my credit score was 636. I was wondering what I need to do next becuase I still want to use these benefits. I would like a 30 year fix rate on this loan if possible. by robert_888_308 from Staunton, Illinois. Jul 11th 2012 Reply


Chris Mylin (chrism_408_673)
#58 ranked lender in Ohio - 32 contributions

I would recommend that you request a copy of your credit report and start by seeing if there are any inaccuracies on the report. Standard minimum score is 640 so you are very close. If you have any inaccuracies you can request that they be removed and your score adjusted accordingly. If this does not work you could try looking for a Mortgage Broker who has multiple lenders and perhaps one of them might lend below 640.Good Luck

Jul 11th 2012
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

Your first mistake was trying to use the "Local Bank".. Local banks are not brokers.. They have only one lending program, and if you don't fit into their small refined box, you don't get a loan.. VA does not have a minimum credit score to lend to a Veteran. Lender overlays can require minimum credit scores, and for most it's 640 or above.. if your middle score is 636, then you're just a few points away for most lenders.. There are lenders out there that will lend to borrowers with scores below 640 ( i have several here in AZ), so your loan is not impossible.. Keep in mind that it takes more than just a credit score to qualify for a home.. Which type of bad credit is there driving down your score, what is your total debt load against your income, etc... the best advice I can give you is to contact a LOCAL mortgage broker, not the local "Big" bank, and certainly not one of those 50 states internet lenders...By applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with numerous lenders, seeking out the best loan terms for your particular scenario. Because he has lower overhead, he can offer you lower rates and lower fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Jul 11th 2012
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Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,431 contributions

"I went to my local bank and they told me they couldn't help you." This is a pretty common theme I hear from people all the time. What they all have in common is: They went to their local bank. You should start your search for the perfect loan by working with a Mortgage Professional, which clearly, your local bank isn't, or they would have helped you with a plan to get your credit where it needs to be. Unlike a bank employee, who is most likely just an order taker, a Mortgage Broker/Banker is Trained, Tested and Licensed in all aspects of Mortgage Origination. We have access to loan products of many lenders, not just those of one bank, and can properly guide you. But more importantly, We are trained to take a look at the various different options available to you and guide you into the one that makes the best sense for your situation, INCLUDING ways to tweak your credit for a better score so you can qualify for the best possible programs and pricing. ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ www.LoansA2z.com 888-889-9950

Jul 11th 2012
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Barb Lanis (BarbLanis)
#69 ranked lender in Illinois - 679 contributions

I can use a score as low as 620 on VA purchase transactions. Illinois lender. 630-660-8868 www.myhomefunds.com

Jul 11th 2012
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Brett Pehrson (brettpehrson)
#19 ranked lender in Utah - 228 contributions

There is already some good advice here. If your bank is denying you the loan because of your credit, and they won't give you a copy of the credit report they pulled, you can request a copy for free directly from the bureaus based on that denial. Knowing why your score is a 636 will be helpful. VA doesn't have a minimum score requirement, but they do have credit requirements. I would suggest talking to a local mortgage broker as they will know how to get your loan through and what lender will best suit your needs. If there is something on your credit that is inaccurate, you may need to dispute it; but, improving your credit score may be as simple as paying down some credit card debt, and then you're options for mortgage lenders will open up. Best of luck to you!

Jul 11th 2012
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Jamie Chenoweth (jchenoweth)
#22 ranked lender in Illinois - 7 contributions

We can use a mid score of 620 for a VA loan. Please feel free to contact me at 309-517-5017 or online at www.chenoloans.com. We are a mortgage company localed in Moline, IL. Thanks. Jamie

Jul 11th 2012
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Peter Botros (PeterBotros)
#70 ranked lender in New York - 895 contributions

There are many lenders that will take a mid score of 620 for VA loans. Call a local lender and ask.

Jul 11th 2012
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