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VA Loan with 560 score possible?

by jessica.smith159 from Marlin, Texas. Dec 19th 2016 Reply


Yes!

Dec 19th 2016
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,565 contributions

In theory, Yes. In practice, not really. The VA doesn't actually do home loans, lenders do. Basically, the VA provides some insurance on a loan for the lender if the homeowner defaults. If lenders underwrite to VA guidelines, they can get this 'insurance'. But there is a big disconnect between what the VA says is allowable, and what lenders will actually do. So while VA says you can potentially get a VA loan with a 560 credit score, it is virtually impossible to actually find a lender that will give you that loan with such a low score. Lenders simply say that score is too much risk. Anything below about a 620 score will put you in the too much risk category. Then next, even if a lender says they will lend with such a low score, there is generally something on the credit report that is giving you the low score that will get you denied. My advice is to work on improving credit first. For VA loans in MN, WI, and SD, you can find me at www.VA-IRRRL-Loan-Mn.com

Dec 20th 2016
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Joan Gallardo (apply@clearlending.com)
#199 ranked lender in Texas - 23 contributions

Yes Clear Lending can do VA with 530 scores:530 Fico 41/41 ratios on DTINo F/BK/SS for 2 yearsNo NSF's past 60 days. Clean Credit for past 12 months.Comp factors that help are:o3 months reserves.oNo payment shockoHigh disposable income.We will follow DU Findings, however if DTI is high the UW is going to take a long look at Income, Debt, Disposable incomeManual Downgrades:Required if there is a 1X late on MTG in past 12 months

Dec 21st 2016
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Mike and Jill Kohler (LenderMike)
#32 ranked lender in Pennsylvania - 56 contributions

No lenders that I am aware of write loan with a score that low.

Jan 22nd 2017
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