VA loan Basics you should know.. 500 Minimum credit Score and Manual Underwriting



Don’t let all the loan options overwhelm you. Let Access Capital Group teach you the VA Loan basics:

VA Loan 500 Minimum Credit

At Access Capital Group, our VA loan qualifying credit score is 500.  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.

VA Loan with offer:

  • 500 Minimum Credit Score
  • Cash out refinance to 100% of value to a 500 Score
  • 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

Keys to VA Manual Underwriting

Your VA loan will be underwritten through Fannie Mae (DU) and Freddie Mac (LP) AUS (automated underwriting system).   Depending on the findings from DU or LP will determine if you have an Automated Approval or if your VA loan will be Referred to the VA  Manual Underwriting Guidelines.

24 months rent history is a must

  • Cancelled checks
  • Third Party Management Company
  • Rent free living with family

Credit History

  • No late payments in the past 12 months, if so isolated is ok
  • Any Charged off or Collections accounts in the past 24 months will require a Letter of Explanation(LOE)
  • LOE detailing the reason for the delinquent credit and how to prevent in the future

Compensating factors

  • Compensating factors may affect the loan decision. These factors are especially important when reviewing loans which are marginal with respect to residual income or debt-to-income ratio
  • Conservative use of consumer credit
  • LOE detailing the reason for the delinquent credit and how to prevent in the future
  • Minimal consumer debt
  • Long-term employment
  • Significant liquid assets
  • Sizable down-payment
  • The existence of equity in refinancing loans
  • Little or no increase in shelter expense
  • Military benefits
  • High residual income
  • Low debt-to-income ratio


VA Loan Manual Underwrite

VA Loan Low Credit Score  ZERO DOWN LOAN 500 Minimum Credit

Contact Us

Access Capital Group Inc.
202 E. Earll Drive
Suite 460
Phoenix, AZ 85012

Phone: 6026485860


NMLS Consumer Access
NMLS # 33043

Arizona: MB-0904605 | California CFL License: 6038514 Loans made or arranged pursuant to a California Financing Law | Colorado: 20021150081 | Colorado: LMB100026744 | Florida: CL0700723 | Idaho 1st Mortgage: MBL-4501 / NMLS # 33043 | Maryland: #33043 | Minnesota: 20337251 | New Mexico: 01475 | North Carolina License/Registration #: B-213554 | Ohio: RM.804918.000 | Oregon: ML-4188 | South Carolina DCA: #33043 | Texas: SML #34341 | Tennessee: 33043 | Utah: 6360087-MLCO | VA - 919946-0008 | Virginia: MC-7553 | Washington MB-33043 | FHA - 18970-0000-1 and 18790 | Wyoming: MBL-1863