VA loan no credit score

VA loan no credit score

VA loans involve a veteran’s benefit.  Therefore, lenders are encouraged to make VA loans to all qualified veterans who apply.

No credit history

For applicants with no established credit history, base the determination on the applicant’s payment record on utilities, rent, automobile insurance or other expenses that applicant has paid.

Absence of a credit history is not generally considered an adverse factor.  It may result when recently discharged veterans have not yet developed a credit history. Applicants have routinely used cash rather than credit. Applicants have not used credit since some disruptive credit event such as bankruptcy or consumer counseling.

Veteran's are eligible for a VA loan with no credit score if they meet the following requirements:

1. No credit score
   
2. Maximum qualifying debt-to-income ratios 43/43
3. No collection accounts
   
4. Three payment record on utilities, rent, automobile insurance or other expenses for the last 12months

Veteran's are eligible for a VA loan with no credit score but have collection accounts on credit report:

1. No credit score
   
2. Maximum qualifying debt-to-income ratios 31/43
3. Three months reserves
4. All collections must be paid at or prior to closing
5. Three payment record on utilities, rent, automobile insurance or other expenses for the last 12 months

Maximum loan size is $417,000.00 and the maximum loan-to-value is 100%. Eligible properties are single family detached, manufactured double-wide, condo or modular.

VA loan no credit score

Mortgage World Home Loans is an online mortgage company specializing in VA loans. To buy a house with zero down payment and a minimum credit score of 500 or no credit score using a VA loan.

Apply now!

Call us 888.958.5382

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We look forward to working with you.