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**Updated 12/18/20

If you have less than perfect credit, you may be worried about how that impacts your ability to secure a VA Loan.  However, even if you have low credit (or no credit score), there are still VA Loans available. 

Here’s how credit scores work with securing a VA Home Loan. 

Applying For A Home Loan Through The VA Loan Program

VA home loans are unique; they are available exclusively to veterans and active members of the military and supported by the Department of Veterans Affairs. For members of the military, the VA Loan program is easier than qualifying for a traditional mortgage.  

The Loans Are Not Sponsored By Veterans Affairs

One common misconception about VA Loans is that they are issued through the Department of Veterans Affairs. This is not accurate, but the VA does guarantee a large portion of the loan, which gives lenders some comfort if they are dealing with financial difficulties. You still need to consult with a mortgage lender for approval and individual lenders will have their own requirements for the loan process. As VA Loan specialists, our team at 1st United Mortgage is trained on eligibility and will walk you through the process so you don’t have to figure it out alone. 

You Have The Option To Refinance

Once approved, you have the option to refinance a previous loan through your VA Loan program.  For example, if you are a homeowner who would like to lower your interest rate and lower your monthly payments, you can apply for an Interest Rate Reduction Refinance Loan. You can qualify for the loan without having to pay any extra expenses. 

You may also be eligible for a Cash-Out Refinance loan. You can use this loan to receive funding to help pay off debt, upgrade your home, or for any other financial needs that you may have. You may be able to refinance the entire amount of your home as mortgage debt, which gives you access to additional cash. The Department of Veterans Affairs also offers Special Housing Adaptation grants to disabled veterans who are seeking financial assistance to help live more independently.

You May Be Able To Qualify Even If You Have Bad Credit

The Department of Veterans Affairs does not have a minimum credit score requirement that borrowers have to meet in order to qualify for the loan. However, lenders are allowed to adhere to their own lending requirements.  

Lenders will check to see if you have been paying your bills on time and if you have any accounts in collection. If you are able to make a large down payment, have a high paying job, or a low amount of debt, you may still be approved for a VA loan despite having bad credit. 

Though you may have heard you need a credit score close to 600, it’s not true! At 1st United we approve loans with credit scores as low as 580. Want more information?  Here’s How To Get A VA Loan With Bad Credit.

When you’re ready to learn more or apply, check out our client testimonials and then contact our team to keep your home buying experience streamlined, simple, and stress free.

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