3 Things to Consider Before Getting a VA Loan with a Low Credit Score

Before applying for a VA loan with a low credit score, think about these 5 things. Understanding the following steps will increase your chances of a VA loan approval with a low credit score.

Is The Minimum Credit Score for a VA Loan 620?

For VA loans, most lenders require a minimum credit score. In most cases lenders require a credit score minimum of 620, but not HomePromise. HomePromise has approved loans for veterans as low as 580.

It is important to know that the VA does not set a minimum credit score. VA approved lenders use credit scoring models to determine the likelihood of an applicant to repay their debts. VA lenders pick their own minimum credit score.

A higher credit score typically means you are financially responsible and a good credit risk for the lender. Therefore, setting a minimum score helps protect lenders and ensures they are making sound lending decisions.

While some VA lenders have a minimum credit score of 620, some may even send their minimum even higher at 640, 660 or 680. Call 800-720-0250 to find out if you qualify for a low credit score VA loan.

HomePromise fights hard for our military members and veterans!

Sometimes a low credit score was caused by a difficult life event like an uninsured medical illness or job loss. Some VA lenders will take into account the reasons ro your low credit score instead of just denying your VA loan regardless of why your score is low.

You may be able to still get a home with a credit score below 620 by using a flexible VA lender like HomePromise. HomePromise specializes in VA loans to veterans with low credit scores. This means that owning a home may be more achievable than you first believed.

Do I need A Cosigner With A Lower Credit score?

If your credit score is low and you want a VA loan, you can consider having someone else sign with you to strengthen your loan application. If they have good income and a small amount of debt, they can help you qualify for a VA loan if your income is low or your debt is high.

However, a co-signer with a high credit score doesn’t erase your low credit score. VA lenders are required to still consider your credit history even if your co-borrower has a high credit score.

This is why it is important to find a VA lender that may be able to help you with a low credit score.  Call 800-720-0250 for more information.

Is a Down Payment Needed With A Low Credit Score VA Loan?

If your credit score is low and you want a VA loan, remember some important things. First and foremost, understand that the minimum credit score for many VA lenders is typically 620, 640 or sometimes even higher. Again, this is not the case with HomePromise.

If you have a low credit score, some VA lenders may require a down payment when applying for a VA loan. But, this is not true of all VA lenders. HomePromise may even make you a VA loan with no down payment even if you have a low credit score..

Every situation is different, so it’s important to talk to a knowledgeable VA loan expert with HomePromise. They will guide you through the process and help you evaluate your options based on your individual circumstances.

So don’t let poor credit discourage you from exploring VA home loan options! HomePromise can make owning a home easier if you understand the rules for low credit scores and are ready to buy a home. Call today at 800-720-0250.