VA Loan Benefits:
- 500 Minimum Credit Score
- Cash out refinance to 100% of value
- ZERO down Purchase down to a 500 Score
- No private mortgage insurance (PMI)
- No pre-payment penalty
- VA regulation limits closing costs
- Sellers can pay all closing costs
VA does not have a minimum credit score requirement. When a lender requires a minimum credit score it is generally a 620, that is called a lender overlay. An overlay is a lender’s own underwriting guidelines above and beyond the VA guidelines. Access Capital Group, Inc. has been a No Overlay Lender since 2001.
Since we follow the VA underwriting guidelines and we do not have overlay’s we generally can approve a Veteran for a VA Loan Manual Underwrite even if they have been told no. The most common reason for a Veteran’s loan to be declined is not having a required minimum credit score per the lenders own set of guidelines above and beyond what the VA requires.
As announced by the VA in Circular 26-19-30 (which provides interim guidance on implementing “The Blue Water Navy Vietnam Veterans Act of 2019″) the conforming loan limit cap on guarantees was removed for Veterans with full entitlement. For Veterans who have previously used entitlement and the entitlement has not been restored, the maximum amount of guaranty entitlement available to the Veteran (for a loan above $144,000) is 25 percent of the conforming loan limit reduced by the amount of entitlement previously used (not restored) by the Veteran. The new guaranty requirements apply for loans closed on or after January 1, 2020.
In 1944, the Servicemen’s Readjustment Act was established in to provide veterans and their surviving spouses with a number of benefits. Among these benefits was the VA loan program. VA loans allow veterans and military to purchase homes with 100% financing, no mortgage insurance, and limited closing costs. Access Capital Group Inc. offers great rates on VA loans in Washington, California, Arizona, Colorado, Florida, Idaho, Oregon, Wyoming, Minnesota, New Mexico and Utah.
In order to apply for a VA loan, you need to meet eligibility requirements. Most veterans, military, and spouses of deceased military members will be eligible. Veterans can apply without any delay if minimum active duty service requirements have been met. Active duty service members on the other hand will need to complete a minimum of 6 months of service first. National Guard and reservists will need to wait 6 years before the benefit kicks in. If they are called to active duty at any point, they will become eligible after only 181 days.
Anyone who intends to apply for a VA loan will need to obtain their Certificate of Eligibility. It is important to note that the COE only proves to your lender that you have met the minimum service requirements. It is not a guarantee that you will be approved for a loan. One of the easiest ways to get your COE is through the VA’s eBenefits Portal. Whether you are looking to purchase your very first home or are looking to take advantage of the VA loan program to refinance, we can help you find a loan that meets your exact needs.