2017 VA Loan With Low Credit Scores

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2017 VA Loan With Low Credit Scores

2017 VA Loan With Low Credit Scores: Introduction to VA Loans

If you aren’t familiar with VA loans or a 2017 VA Loan With Low Credit Scores, you should know that Veterans of the United States Armed Services get some of the best and lenient guidelines available to any borrowers to make sure these people can get the home they deserve for dedicating service to our country.  As long as the borrower/veteran has an honorable discharge and a valid COE or Certificate of Eligibility of their service, they are eligible for a VA Loan.  As I mentioned earlier, VA Loans have some of the best benefits around and they are as follows:

–          Ability to receive the loan with no money down which means that these loans can be had with 100% financing.

–          In addition to the 100% financing, you can also have the opportunity to roll the funding fee into the VA Loan for a true loan with no money out of pocket.

–          Seller’s Concessions are limited to 4% and these funds can be used for closing costs and can further ensure that a loan is had without any money out of pocket.

–          If borrowers run into a situation where the seller of a potential home will not offer a seller’s concession, then there is the ability to cover closing costs via Lender Credit which may result in a higher interest rate, but the credit received should cover all existing closing costs to keep your loan with $0 out of pocket.

2017 VA Loan With Low Credit Scores: Is It Possible?

The rest of this article will focus on a 2017 VA Loan With Low Credit Scores and how even low credit scores won’t prevent you from obtaining a VA Loan.  You don’t need good credit to qualify for a VA loan, but can also have fair credit as well.  To see just how you can get a 2017 VA Loan With Low Credit Scores, please see the guidelines below:

–          VA Loans qualify individuals with 580 FICO Credit Scores

–          Must be a Veteran with a valid Certificate of Eligibility

–          Property Types include: Single Family Home, Townhome, Condo, and 1-4 unit properties

–          Must have documented incomes

–          Must have reasonable debt to income ratio

–          Must meet all standard VA Guidelines

2017 VA Loan With Low Credit Scores: Credit Requirements

Just because you are a Veteran with an honorable discharge and a Certificate of Eligibility doesn’t necessarily mean you are guaranteed a loan no matter your history.  Per the VA Loan Guidelines, there are still guidelines and waiting periods that need to be adhered to.  Only doing so will get you the approve/eligible from the AUS or Automated Underwriting System.

–          Even though there is no minimum FICO score requirement for a VA Loan, most lenders will require at least a 580 FICO in order to do a VA Loan.

–          2 year waiting period after recorded date of foreclosure and deed in lieu of foreclosure

–          2 year waiting period after a Chapter 7 Bankruptcy

–          2 year waiting period after a short sale

–          There isn’t a debt to income ratio requirement but you can find lenders go as high as 60% DTI and still get your loan done

–          Collections and charge-off accounts do NOT need to be paid off

–          As long as student loans have been in deferment for more than 12 months, they are exempt from debt to income calculations

2017 VA Loan With Low Credit Scores: Conclusion

As you can see it is definitely possible to get a 2017 VA Loan With Low Credit Scores.  The fact of the matter is if you are an eligible veteran, getting a loan should be easy if you can qualify for a VA Loan.  If you are a veteran, we would love to help you out and you can get into contact with us by calling 888-900-1020, emailing at contact@loanconsultants.org, or inquiring at www.loanconsultants.org.

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