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Can I buy a home using my VA loan with a poor credit score?

I'm retired but have pretty good income working for my daughter's company. I would like to use my VA loan to purchase a new home. My credit score was pretty good last year then dropped significantly a few months ago. My score now is pretty low. Is there a chance that I would be approved for a loan?  Should I pay off everything right now and then apply?  
  • September 24 2013 - US
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Answers (8)

Good Evening
I currently work for a direct lender and we do VA loans with credit scores as low as 580. We also work with a company called credit plus in order to improve your score if necessary. We also do 100% financing for VA loans. Feel free to give me a call so that we can both improve your credit while also getting you into your new home.
Warm Regards,
Stephanie Adams

813-316-2172

  • September 24 2013
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A few things:

To directly answer your question without any details - yes.

If you're not sure what destroyed your credit, you should drop what you are doing and figure that out, and set in motion a repair plan, immediately.  If you do know what happened, the only thing you can do at this point is learn your lessons and move on a better person.

Start by figuring out the best method to repair your credit, pay off high balances, etc.  Consult with a professional credit repair entity if you aren't sure how to fix your financial situation. 

The real factor you need to consider is if you got that loan with a poor credit score, is it really a loan you want to take?  VA loans are good, but any loan with poor credit can be subject to obnoxiously high credit and fees, you don't want that unless you have absolutely no choice and nowhere else to live. 

You really need to sit down and write everything out.  Decide what the needs are (financially and otherwise) and figure out if you're willing to take the risks, or time, associated with your goals in order to achieve them in the most responsible, sound way possible - instead of jumping into something you'll seriously regret a few years from now.

Good luck
  • September 24 2013
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Getting a credit report with your scores is the first step.

IF your middle score is over 580 (there are 3 companies that produce a score and lenders throw out the highest and lowest score), then you are ok to go.

When cleaning up credit, the first question is what is accurate and what is not. If there are late payments, the older they are the less they impact your score. If you have balances that are over 50% of the credit limit, paying them down to under 50% will help quite a bit.

Credit repair is time consuming, and it is usually 60-90 days before you see the score improved.

Good luck!
  • September 24 2013
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This question is hard to answer without knowing full details about your finances and debt. Also, how bad is your credit score? It still may be possible to get a loan with your credit score because I have given VA loans with credit scores as low as 560. So if you are above 560, then you still have a shot. Otherwise, I recommend bringing up your score a bit. Either way, I recommend you speak with a lender like myself who would be more than willing to speak with you to help you get the loan that you need.

Well I hope this helps! If you have any other questions or if you would like a loan, feel free to contact me.

Good Luck!
  • September 24 2013
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Your best bet would be to have a lender look at what your score is now and give you advice on what to pay down.   Most lenders will allow down to a 580 credit score VA.  I would check with someone first before dumping all your cash to pay everything off.
  • September 24 2013
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You should contact a local reputable lender and have them look in to your situation. A good lender will have a credit repair contact and have your credit cleaned up if necessary before you get a loan. See what your options are and what rates are available to you with your current score. And also see ho long credit repair would take for you to get in to a better credit position. Good luck
  • September 24 2013
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In the long run, getting credit clean would be a better payoff than trying to push a loan with a low score. 

If you the problem with the credit, get a some advice on how to clear it up. Some times you can settle and part of the settlement is that they agree to remove the account completely from the credit system. 
  • September 24 2013
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A few good questions there. Right now, the minimum credit score to get a VA loan is 580. If your score is below that, you'll probably want to work on your credit before attempting to get financing on a home.

If you are above 580 (middle credit score), you would want to call a local, reputable mortgage professional to see if you would qualify for a new VA loan.

If you have the money to clean up your credit, that is probably the route to go for now. You'll see more attractive rates and fees on your loan the higher your credit score is.

That's about the best advice I can give you without any more specifics, best of luck!
  • September 24 2013
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