VA Loans for FICO Scores Below 620

Mortgage and Lending with NMLS# 335055 335055

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


Tom Burris 

Mortgage Banker
(214) 763-4629 cell/text/nights/weekends(Really!!)
Lending all across the entire Great State of Texas!! (And now Louisiana too)
NMLS# 335055
Search Dallas area MLS for FREE. No registration =>
10yr Veteran navigating Mortgages for wonderful clients. 

Louisiana Loan Officer

Comments (2)

Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Tom, thanks for educating us on this topic. 

Are you living in Louisiana permanently?  I know there are a few people on Active Rain who have kept one blog for two locations.  I hope they respond.  Since TX and LA border each other, how about the Texas & Louisiana Loan Guy?  I would contact Bob Stewart and Ben Kinney and ask for advice.

Aug 20, 2015 04:14 AM
Tom Burris
NMLS# 335055 - Baton Rouge, LA
Texas/Louisiana Mortgage Pro - 13 YRS Experience

Thanks Sharon, I am a full time 'Louisiana Man' now.... 
Trying to figure out how to best serve both markets with my seo....  I will contact them soon though


Aug 20, 2015 04:23 AM

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