Even if your credit score is below 660, you may still qualify for a VA home loan. If your credit score is 620 or above, we can help you today.
If you’re a veteran or active-duty military member struggling with a low credit score, you may think that buying a home is out of your reach. However, a VA home loan can make homeownership a reality for you. VA loans are backed by the Department of Veterans Affairs and offer a simplified, no money down mortgage option.
2023 VA Loan Limits
VA loan limits have increased in 2023, allowing veterans and service members to purchase homes in more expensive areas. The new loan limits are based on the Federal Housing Finance Agency’s (FHFA) 2023 conforming loan limits, which increased to $647,200 for most of the country and up to $970,800 for high-cost areas.
2023 VA Funding Fee
The VA Funding Fee has also increased slightly in 2023. The fee helps cover the costs of the VA home loan program and ranges from 1.4% to 3.6% of the loan amount, depending on the type of loan, the size of the down payment, and whether the borrower has used the VA home loan program before.
VA Home Loan Credit Score Requirements
Unlike other mortgage programs, VA home loans have more lenient credit score requirements. While many lenders require a minimum credit score of 660 or higher, 1st United Mortgage can help borrowers with credit scores of 620. A low credit score may affect your interest rate, and you may need to provide additional documentation to prove your creditworthiness. Contact us for more information.
Benefits of VA Home Loans
VA home loans offer several benefits for veterans and active-duty military members. One of the most significant advantages is that they do not require a down payment, which can be a significant barrier to homeownership. Additionally, VA loans do not require private mortgage insurance (PMI), which can add hundreds of dollars to your monthly mortgage payment.
VA loans also offer competitive interest rates, which can help you save money over the life of your loan. And if you run into financial difficulties and are unable to make your mortgage payments, the VA has programs in place to help you avoid foreclosure.
Applying for a VA Home Loan
To apply for a VA home loan, you’ll need to obtain a Certificate of Eligibility (COE) from the VA. This certificate verifies that you meet the eligibility requirements for a VA home loan. You can apply for a COE online through the VA’s eBenefits portal or by mail using VA Form 26-1880.
Once you have your COE, you can start looking for a VA-approved lender to work with. The lender will review your credit, income, and other financial information to determine if you qualify for a VA home loan.
FAQs:
Q: Can I qualify for a VA home loan with a credit score under 660?
A: Yes, you may still qualify for a VA home loan with a credit score under 660. Different VA lenders have different credit score requirements, but many can work with credit scores as low as 580.
Q: Are VA home loans only for first-time homebuyers?
A: No, VA home loans are available for veterans, service members, and surviving spouses, regardless of whether they have owned a home before.
Q: Is a down payment required for a VA home loan?
A: No, VA home loans do not require a down payment.
Q: Can I use a VA home loan to buy a second home or investment property?
A: No, VA home loans are only for primary residences.
Q: What is the VA Funding Fee?
A: The VA Funding Fee is a fee charged by the VA to help cover the costs of the VA home loan program. The fee ranges from 1.4% to 3.6% of the loan amount, depending on the type of loan, the size of the down payment, and whether the borrower has used the VA home loan program before.
Q: What is the Certificate of Eligibility (COE) and how do I get it?
A: The Certificate of Eligibility (COE) is a certificate that verifies that you meet the eligibility requirements for a VA home loan. You can apply for a COE online through the VA’s eBenefits portal or by mail using VA Form 26-1880.
Q: What are the credit score requirements for a VA home loan?
A: Different VA lenders have different credit score requirements, but many can work with credit scores as low as 580. However, a low credit score may affect your interest rate, and you may need to provide additional documentation to prove your creditworthiness.
Q: What are the benefits of a VA home loan?
A: The main benefits of VA home loans are that they do not require a down payment, do not require private mortgage insurance (PMI), and offer competitive interest rates. Additionally, the VA has programs in place to help borrowers who run into financial difficulties and are unable to make their mortgage payments.
Q: How do I apply for a VA home loan?
A: To apply for a VA home loan, you will need to obtain a Certificate of Eligibility (COE) from the VA and then find a VA-approved lender to work with. The lender will review your credit, income, and other financial information to determine if you qualify for a VA home loan.
Work With 1st United VA Mortgage Home Loans
At 1st United Mortgage, we are committed to helping military borrowers achieve their dream of homeownership through VA home loans. We understand that the process of buying a home can be overwhelming, which is why we offer our expertise and personalized assistance every step of the way.
As a home lender, we are proud to offer VA loans with zero money down and zero cash out of pocket, making it an affordable option for eligible veterans, active-duty military personnel, and surviving spouses. We believe that no matter your credit score, you have earned the right to this benefit through your service to our country.
We work with military borrowers who have perfect credit, as well as those whose credit is a work in progress. Our team of experts has the knowledge and resources to help guide you through the process of improving your credit score if necessary. We firmly believe that everyone deserves a chance at homeownership and we are committed to helping you achieve that goal.
Our Principal Broker, Beth Lee, has over 30 years of experience in the mortgage industry and is dedicated to providing personalized service to each of our clients. Beth Lee and the entire team at 1st United Mortgage are here to keep you informed throughout the home buying process, from contracts to closings. We understand the unique needs of military borrowers and are committed to making the process of buying a home as smooth and stress-free as possible.
So why settle for an FHA loan or work with any lender when you have a better option with 1st United Mortgage?
Our commitment to serving military borrowers and providing exceptional service sets us apart from other lenders. We believe that you have earned the right to the best possible service and we are here to deliver it. Start your journey to homeownership today with 1st United Mortgage.
Ready To Apply?
If you have bad credit, you may have been wondering, “Can I still get a VA loan?” The answer may be yes. We have worked with many homebuyers who had credit scores under 600. We also offer a credit rehabilitation program for those who don’t qualify today.
When you’re ready to learn more or apply, check out our client testimonials and then contact the VA loan experts at 1st United Mortgage to ensure your home buying experience feels streamlined and stress free!