All Right. We have right. Well going on guys. My name is Raoul and I am a realtor here in Austin Texas. And today we’re going to focus on the V.A. loan and more importantly or specifically the credit score you need to apply for that loan. Now I work with a lot of veterans and the number one thing I come across that kind of put everything on stand still is a veteran’s credit score. A Veteran credit score is typically lower just because we wasn’t taught about the importance of finances and all that good stuff while we’re serving. It was bang bang three hots and a cot get up and do it again. Not in that order but pretty much. So. A lot of veterans have come in and we have the star card at different lines of credit. As soon as you go off on a military post What do you have apply here. No down payment. And all is good stuff. And you know Joe Snuffy twenty one years old he was. He you want the nice truck with the big rims and the sound system in. And I had no idea how much is going to cost him the interest in how he’s going to pay this and who’s going to manage his funds when he get deployed. Total disaster. But fast forward to today. And you’ve grown up you’ve learned your lesson are you ready to buy a home. All right. So the bare minimum that I will say the V.A. want to see is a 620. A 620 credit score will allow you to apply for the V.A.
law and go through a automatic underwriting process where they instantly give you a thumbs up or thumbs down based on other factors of your buyer ability your buyer’s profile. Now I say 620 but that’s just what the V.A. want to see. Now if you’re dealing directly with a lender and say hey I actually got a five eighty. And the lender is willing enough to go through the process called a manual underwriter. They would take your buyer’s profile and break it down. Manually and actually question is why this and why that. Can you give me a letter explanation for this and you know and then they’ll send up to their underwriter and they will build a nice you know this is the reason why I’m not 620 package and present it to the underwriter and see what they say from there. Now with the V.A. loan they basically they’re not the lender. So that’s why you get that you know that difference of between them as far as credit score minimum was is because the V.A. only backing that loan for the bank the bank is going to originate that loan for you the veteran and the V.A. say hey thank you for helping us out. We will back your loan a hundred percent if this veteran mess up his payments you know lose his job go to foreclosure. We’re going to pay that off for him. And what they should do how they will deal with that they will say hey veteran. You qualify for four hundred eighty four thousand dollar V.A.
loan benefits. Well you just you two hundred thousand dollars on the loan that you forfeited. Well I’ll say if the veteran paid about twenty thousand of that two hundred thousand so he owed one hundred eighty thousand. The V.A. will come in pay that 180 and say hey veteran doc that when 80 from your maximum benefit of four hundred eighty thousand eighty four thousand you know that’s how that works or next time. That’s saying that you can’t use a VA loan again but it won’t be as much and it’s a whole. Bucket load of more paperwork to explain why this is going about. But it all will be summed up in something called Your a Certificate of Eligibility. We’re not going to go into that right now we’re going to say that for the video. I just want to show you guys of the magic number what the V.A. is 620 no matter what nobody else say. And if. The perf you know the specific lender that you’re working with is willing to go through the process of a manual underwriter you still have hope. So I hope that helps if you have any questions feel free to leave a comment below. Make sure you subscribe because these videos are actually going to start coming out on a regular basis and it is going to be packed with value valuable information so you whether you sell it at home you’re a veteran or your first time home buyer. It doesn’t matter. I’m going to cover it. But right now 620 V.A. loans. See you next hour. Thanks.