The FICO Score
You need a score of 580+ FICO regardless of loan amount. This comes with no overlays. This score applies whether purchasing a property or taking a cash-out.
You require 580+ FICO for manufactured (MFG) home and 620+ for single wide homes. The lenders can also accept your application with 1 FICO. The lender also accepts loan prospector (LP) and desktop underwriter’s (DU) findings as long as they are reasonable.
Debt-to-Income (DTI) Ratio
There is no DTI cap as long as you get approval from the automated underwriting system (AUS). If you are a VA refer and eligible for the loan, then a maximum DTI of 43 percent becomes applicable. AUS approval also eliminates any restrictions on minimum credit history or tradelines.
Other Requirements
You get unlimited credit for the chosen rate, with no verification of rent (VOR) unless required by DU findings. Additionally, no collections are paid unless required by the AUS. The seller is permitted to pay for your prepaids and closing costs, though the seller cannot own the home before reselling it.
If you decide to go for an interest rate reduction refinance loan (IRRRL), then know that there is no income verification, no appraisal and no FICO limits.
The lender can approve your application with 2×30 days lates. You can also get 1 day off of multiple listing service.
How do We Come In?
Did you know that you can get cash out refinance of up to 100 percent on your VA loan? However, you must qualify. At MortgageDepot, we have taken the long process of VA loan application and shortened it for your benefit. Loan application has never been easier!
Contact one of our loan consultants to learn more about this program.
Have questions or need help?
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