Many Veterans living in Utah have been told that “VA has changed their policy and now requires a minimum credit score on all Utah VA streamline refinances”.
Which isn’t true.
But what is true is that many lenders are now requiring a minimum credit score for all VA streamline refinances – which many have a similar effect, but is not exactly the same as if VA were to change their guidelines.
If you are a Veteran who is currently in a VA loan and have been told that you can’t qualify for a VA streamline refinance, there is good news out there — not all lenders currently require a minimum credit score for a VA streamline refinance.
As you know, the VA only insures your loan, they don’t actually lend you money. You borrow money from a group of approved mortgagees who each are free to set their own minimum guidelines for the VA streamline program. The end result of this is that while one lender may require a 620 credit score, another may only require a 580 and yet another may not have a credit score requirement at all.
So if your loan officer has explained that he can’t help you because of a minimum credit score requirement, the first thing that you should do is ask him for a referral to another loan officer he knows who doesn’t require a minimum credit score when doing a VA streamline.
And you might be surprised at how many he knows who can help you!
