Getting a home loan with a low credit score can be difficult, but not necessarily impossible, says one mortgage expert.
Mario Blautzik, a Freedom Mortgage loan originator in Maryland, says veterans with a credit score in the 500’s can still qualify for a VA Home Loan.
“That opens up the doorway to a lot more homebuyers.”
Blautzik says one of the first steps is to run veterans through automated underwriting to see if they qualify for automated approval.
“If not, then we go by the guidelines. Common sense underwriting by the book,” he says. “Once we pull their credit, we review their credit with them, tell them what their credit scores are, and we give them the three P’s: Purchase price, out-of-pocket and monthly payment.”
Blautzik points to a case involving a potential homebuyer who had a 553 credit score, but did meet VA guidelines.
“We went through the income, the B.A.H. [Basic Allowance for Housing]. We can gross that up since it’s non-taxable. A lot of loan offers don’t know what can be calculated, can be looked at and what improves their eligibility. In her case, she meets the guidelines and she’s out there looking for a home, whereas her credit union turned her down.”
Call 800-601-0770 to speak with a Freedom Mortgage VA Home Loan officer or click here.
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