Can Qualify For a VA Loan With A 500 Fico ?

If you applied for an FHA or VA loan, but your lender said your credit score is too low than you may need to look at other lenders..

Here is the number one thing you need to know about VA Loans : The minimum credit score that a lender tells you may be a lender overlay.

What are Lender Overlays?

Lender overlays are more stringent standards than investor guidelines set by Fannie Mae, FHA, and VA.

The most common lender overlay is minimum credit score.

Most lenders will tell you that the minimum credit score is higher, often they say 580. But that is not true. It's their minimum credit score.

Often lenders hide this fact because they hope you return to them when your credit score improves. Don't wait.

Even with a credit score of 500, you can still get an amazing rate.

VA has set guidelines, however, lender overlays make it more stringent to qualify. Not all lenders have overlays. Make sure to let us shop around all of the top lenders for you to make sure that you get the financing that you deserve.

Do not miss the opportunity to take cash-out or buy your dream home just because one lender has an overlay.

Let us do the shopping for you.

The Real VA Guidelines (don't let a lender tell you different)

VA Down Payment: 

• For credit scores of 500 and above, you can buy with 0% down

VA Cash-Out Refinances:

• For credit scores 500 and above, you can take cash-out up to 100% of the appraised value

VA Interest Rate Reduction Refinance Loan (IRRRL):

• There is no minimum credit score, lenders are not required to look at your scores.