Texas Vet and VA Mortgage approval is not completely driven by credit score, but focuses more on the borrower’s timely payments and credit history over the past 12 months. We do have certain minimum credit requirements, but they are much more flexible than conventional loan programs.
If there have been a few credit issues, many times you can provide a letter of explanation for the underwriter to review and consider. If you are concerned or have questions about issues on your credit report, contact us and we will review it with you to help determine if we can get you pre-qualified for a Texas Vet or VA Loan.
There is not a minimum credit score requirement per the VA guidelines. However, like most lenders, we do have a minimum score. Our minimum credit score for a VA Loan ranges from 580 to 620.
If you have had a bankruptcy in your past, you could still be eligible for a VA Loan:
- Under a Chapter 7 Bankruptcy:
- If the bankruptcy was discharged over 2 years ago, it can be disregarded.
- If the bankruptcy was discharged in the last 1 to 2 years, the lender will need to analyze the credit risk to determine if the borrower meets the VA requirements.
- If the bankruptcy was discharged within 12 months, it generally is not possible to determine the Veteran’s credit risk.
- Under a chapter 13 Bankruptcy:
- The lender will need to ensure that the Veteran has made at least 12 months’ worth of payments and the Bankruptcy Judge approves of the new credit.
If you have had a foreclosure in your past, this does not necessarily disqualify you from a Texas Vet or VA Loan:
- If the foreclosure that was finalized more than 2 years from date of the purchase of the new home, it can be disregarded.
- If the foreclosure was finalized between 1 to 2 years from date of the purchase of the new home, the lender will need to analyze the credit risk and determine if it is possible in reference to the VA credit guidelines.