VA Loans for FICO Scores Below 620
I get asked a lot about VA Loans below 620 FICO Score. Yes, they exist!!!
Mortgage Bankers like myself sell our loans to the many large servicing banks and some of those just do not have the appetite for sub 620 scores on a loan with 100% financing. But there are still some outlets for us to sell these to so we offer the loan and close them!!!
Like many loans with lower credit scores, expect a little more scrutiny…. As is prudent. Below are some example of things allowed by VA but frowned upon when approving files with lower scores.
- Borrower should have a couple months of mortgage payments in ‘reserve’ after closing
- Tighter Debt Ratios of 43% instead of the expanded debt ratio limits on the higher credit score files.
- No prior bankruptcy, foreclosure, or short sale
- Be prepared to verify rent payments
- We don’t allow gift funds for closing costs
- No property flips
If you fall in the 600 – 620 FICO Score range, then give us a call to see if we can get you into this program. It still comes with great rates and no PMI
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10yr Veteran navigating Mortgages for wonderful clients.