Get A VA Mortgage With A 600 Credit Score!
While most lenders require at least a 620 or better middle credit score we will do a VA Mortgage with a 600 Credit Score!
It’s important to note that VA does not have a minimum credit score requirement so any time you hear a lender say they will do a VA Mortgage with a 600 Credit Score it’s what the lender requires or allows. The same thing applies to lenders that require a 620 score or higher. This is what we call a lender or investor overlay.
There are a few lenders that say they will do VA Mortgages as low as 530 or better but you need to be really careful and here’s why.
While VA doesn’t have minimum credit score requirement they do have credit history requirements.
For example: Here are the VA Guidelines:
http://www.benefits.va.gov/warms/pam26_7.asp
VA Pamphlet 26-7, Revised
Chapter 4: Credit Underwriting
In circumstances not involving bankruptcy, satisfactory credit is generally considered to be reestablished after the veteran, or veteran and spouse, have made satisfactory payments for 12 months after the date the last derogatory credit item was satisfied. For example, assume a credit report reveals several unpaid collections, including some which have been outstanding for many years. Once the borrower has satisfied the obligations, and then makes timely payments on subsequent obligations for at least 12 months, satisfactory credit is reestablished.
So this is telling you that the VA wants to see 12 months of “clean” credit meaning no late payments, collections or charge offs in the most recent 12 months. They will allow 1 or 2 30 day late payments but that’s not really the point. So what is the point you ask? Your credit score is a direct reflection of your most recent credit history in most cases so if you have a 580 or lower credit score that generally means you have multiple late payments, collections or charge offs and that would make you ineligible under the VA guidelines.
What does this mean for you getting a VA Mortgage with a 600 Credit Score? It’s still possible as long as your most recent credit history is fairly “clean”.
You will probably also hear that anyone doing a VA Mortgage with a 600 Credit Score is going to have higher fees and interest rates and that’s just not true. You’ll get the same rate as someone with a 620 score.
So now you know that it is possible to get a VA Mortgage with a 600 Credit Score!
If you have questions or you want to see how much you qualify for, feel free to call me at (877)228-9069 or fill out the form below.
