VLB veteran loans: Tips to boosting your credit score

The VLB and its participating mortgage lenders require loan applicants to meet certain credit requirements, one of them being a minimum FICO (credit score) of 620. If you plan to apply for a VLB home, home improvement or land loan, make sure you know your credit score. If it’s below 620, steps you take now will, over time, improve your score.

First, order a free credit report from each of the credit bureaus (TransUnion, Equifax and Experian) once a year at www.annualcreditreport.com. Check for damaging errors, and then write a letter to the bureau to dispute any incorrect items.

Second, it is important to keep your payments current. Your payment history accounts for 35 percent of your total FICO score. If you have credit cards or other revolving debt, keep your balances to less than 30 percent of your credit limit on each account. Also, it’s better to spread your debt to several accounts rather than to favor one card.

Another way to improve your credit is to have your credit limit increased without using that additional credit. But remember, don’t apply for new credit during the months leading up to an application for a VLB loan as that will decrease your score, and closing credit accounts will impair your score. After three to six months of taking these steps, your credit score should improve, and you may be able to qualify for a VLB loan.

Contact us at 1-800-252-VETS (8387) for details about the VLB veteran loan programs.

5 thoughts on “VLB veteran loans: Tips to boosting your credit score

  1. Hello im intrested in purchasing a property with a nice house and 46 acres. Can i use the VLB home loan to purchase this? The land has an ag exemption and a timber exemption, i have no plans to use the land or trees what so ever.

    • Hey Daniel. Thanks so much for getting in touch with us. You can certainly use the VLB home loan to purchase property with a home. The only issue is when you get into larger tracts (10+ acres) like you are talking about, it can be difficult to find comparable properties for the appraisal. What some people do is section off a piece of the land (maybe five acres or so) with the home and do that as a stand alone transaction. The rest of the land would be purchased separately. This is just an option. You may be able to find a lender who will finance that large of a tract. If you’d like, please call me, Jimmy Smaragdis, at 512-463-9299, and let me share a little more information.

  2. To whom it may concern:

    The home and home improvement loan rate is posted on the TVLB website for all to see. What exactly does this rate imply? I qualify for a home loan and we’re currently in the building phase. Is the rate simply a starting point similar to mortgage bank rates which display the best going rate only to qualify for a higher rate due to a less than perfect credit score?

    My finance broker indicated once we went to lock in the rate, whatever the going rate was for the VLB would be our rate. Is this accurate? I appreciate any clarification available on the matter.

    Chris Fields

    • Hello Chris,
      Thank you for your response. We love to hear from our veterans! The rate listed on the website is the rate you would get if you were able to lock this week. Your lender, if they do VLB loans, should be able to inform you when that date is going to be. If building, you typically have 2 closings, one for the construction loan and the final closing on your mortgage loan, which is somewhere around the time that the sheet rock goes up in your home. Ask the lender to indicate when you might lock and if they are authorized to do VLB Loans. I hope this helps, but please feel free to call us if you need further clarification. 800-252-8387.

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