No Minimum Credit Score Required
With most lenders requiring a Minimum Credit Score of at least 620 or above on FHA, Conv and VA loans most borrowers are finding it difficult to find financing if they score below 620.
Not everyone who scores low on fico scores should not disqualifiy based on low scores alone. If you show a good track record in paying bills on time and can prove that you are credit worthy regardless of credit score you should be approved.
Even though FHA & VA still follow these guidelines, most lenders are capping the credit scores to 620+ to be approved.
There is one program out there that still holds a TRUE NO MINIMUM FICO SCORE regardless of what the lender will approve.
THE VHDA program will honor the no minimum fico score in the following conditions.
- 31/43 Debt-to-income ratios
- No late payments in the last 12 months over 30 days.
That’s it! Simple as that, a True no minimum fico score requirement!
Enjoy the 103% Financing!
VHDA Changes to Maximum Qualifying Ratios
New Changes to the Maximum Debt to Income Ratio 50.00% for all VHDA Loans which was upped from 43%. This will allow more people to qualify with limited income. This is great news! Below are the official changes taking place Feb 2009.
All VHDA loans (including FHA, VA, RHS, PMI or uninsured loans) will be limited to a maximum of 50.00% debt to income ratio when using an automated underwriting Approve/Eligible Decision.
Stated program ratio guidelines will apply for manually approved loans. This new restriction is effective for loan reservations made beginning February 1, 2009.
FHA Plus: (103% Financing)
VHDA will continue to accept FHA Total Scorecard approvals for FHA Plus with the following limitations:
Loans may exceed FHA’s standard ratio requirements of 31% payment to income and 43% debt to income (to a maximum of 50% debt to ratio) only if the applicable credit score is 620 or above.
Credit scores below 620 and non traditional credit must adhere to the maximum 31%/43% FHA program ratios.
This new requirements are effective with loan reservations made beginning February 1, 2009.