VA Loan w/ 580 Score 1-4 Units

This is a VA loan with a  reduced credit score requirement for eligible veterans. Ideal if credit issues are from the past. This loan is for someone who can afford the mortgage, responsible with rent and has 10% down payment.

Credit score: 580 minimum
Property type: 1-4 units, Condo, PUD
Occupancy: Primary residence
Down Payment: 0% minimum
Loan to Value: 96.5%   Max. CLTV: 96.5%
Gift Funds Allowed. No minimum buyer contribution required.
Closing cost: Seller and/or lender can pay up to 6%
Debt Ratio: 41%     with compensating factors up to 46/46%


Additional Notes:

  • Must complete Homebuyer Education
  • Must provide evidence of strengths to offset their deficiencies
  • No lates in last 12-24 months. No lates after BK or Foreclosure
  • Open collection to be paid off through closing. Small medical excluded
  • VOR from property management or 12 mos. cancelled checks
  • No mortgage insurance regardless of down payment
  • Condos must be VA approved
  • Must meet VA Residual income requirement
  • First time buyer not required. Must be primary residence
  • Bankruptcy 2 yrs., Foreclosure 2 yrs., Short Sale 1 yrs

This page contains program highlights only.  See sidebar links for further information and details.

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