Well… I wouldn’t get TOO excited! According to the underwriters I’ve talked to lately – even though VA does Not Require a Credit Score, they will require a MINIMUM of at least 12 months of clean credit.
There’s good news! No matter what your score is – as long as you meet the minimum score requirements for the Underwriter to approve your mortgage, you will get the best Home Loan Rate for Veteran’s! In the past, a lower score could impact your rate. That’s no longer the case, and as long as we can get your loan approved, your credit score will not change your mortgage interest rate with a VA home loan!
If you’ve had a Bankruptcy – you can still get a VA Mortgage loan. You must be at least 1 year out of Chapter 13 and 2 years out of Chapter 7. Most underwriters want you to have re-established credit and have those “pesky” 12 months of clean credit. Foreclosure is treated the same as a Chapter 7, so a 2 year waiting period generally applies.
Are you a Veteran in Credit or Debt Counseling? We might still be able to help you get into a house!
The interesting thing about the way this works is that the Veteran’s Administration doesn’t actually MAKE mortgage loans – they insure the Bank against the possibility of default or foreclosure, just like a PMI company. Because of that, simply because you are eligible for a VA mortgage loan does not mean that you will get one.
You must still qualify for the loan... and just because the Veteran Hone loan program does not have a minimum credit score, doesn’t mean an underwriter (at the bank) is going to approve it. For the most part, Underwriters are requiring Veterans to have at least a 620 score – and in most cases they are looking for a 640 score.
If you have questions about VA loans, and the fact that VA Does Not Require A Credit Score, please contact Steve and Eleanor Thorne 919-649-5058. We can help you with a Streamline refinance, or a purchase using your VA Home Loan Benefits.