VA Loan ZERO Down Loan Manual Underwriting Low Credit
We pre approve loans to the VA Underwriting Guidelines. We do not need an Automated Approval to close your VA Loan.
If your score is under 640 you may need to do a VA Manual Underwritten Loan. Most lenders want a 640 score so they can receive either Approve/Eligible (Fannie Mae) or Accept (Freddie Mac) findings from the AUS (Automated Underwriting System).
Approve/Eligible and/or Accept findings do have their advantages. Advantages can include, less or no rental verifications, less income documentation and less credit explanations. Approve/Eligible and/or Accept AUS findings are great and ANYONE can close these loans.
With VA if your credit score is below 640 your AUS findings could come back Refer/Eligible and/or Refer. When Refer findings are received a lot of lenders pass on your loan. The most common reasons they “pass” on your loan is well… they can’t do manually underwritten loans or your score is below 640 and you do not meet VA Underwriting Guidelines… These are their VA Loan Overlays.
We pre approve VA Manually Underwritten loans to the VA Underwriting Guidelines.
Keys to a manual underwritten VA Loan
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
- Rent free living with family
VA Loan Manual Underwriting
NO Overlay Lender
VA Loan 500 Credit Score
