The U.S. Department of Veterans Affairs doesn’t set a specific VA loan credit score requirement. Lenders, however, can set their own minimum requirements for a VA loan. Most require a score of at least 620, but some go as low as 500.
On this page
- What VA loan credit score do you need?
- Can you get a VA loan with no credit?
- What are the VA loan credit requirements?
- Comparison shop no matter your credit score
- How to improve your credit score for a VA loan
What VA loan credit score do you need?
While the VA doesn’t set a minimum credit score for a VA loan, many lenders won’t accept a score below 620. So can you buy a house with a 600 credit score, or even a 500? The answer is likely yes. If you have damaged credit, make sure to shop around — low credit mortgage lenders do exist who will give loans to veterans with bad credit scores. VA loans can be accessible to those with scores in the 500s and low 600s.
However, as with any type of mortgage loan, the higher your credit score, the lower your interest rate offers will be.
What is the minimum credit score to buy a house?
| Loan type | Minimum credit score | FICO® credit score rating | Who sets the minimum? |
|---|
| VA | 500 | Poor | The lender |
| FHA | 500 (with a 10% down payment) | Poor | the U.S. Department of Housing and Urban Development (HUD) |
| USDA | 580 | Fair | The lender |
| Conventional (conforming) | 620 | Fair | Fannie Mae and Freddie Mac |
VA loans are a great option for veterans with low credit scores. Compared to other loan types, VA loans have the lowest minimum credit score requirement and, unlike FHA loans, don’t ask for a bigger down payment if you have low credit.
Can you get a VA loan with no credit?
If you have no credit history, don’t worry — you can use alternative methods of showing a VA loan lender that you have a history of repaying your debts and making on-time payments. Many bills you may have paid regularly for years — such as rent, utilities or a cell phone bill — can be used just like a standard line of credit to show a lender that you’re responsible and motivated to pay your debts. Sometimes called “alternative tradelines,” these bills and the financial relationships they represent can usually help you qualify for a VA loan if they’re at least a year old.
What are the VA loan credit requirements?
In addition to meeting your lender’s VA loan credit score requirement, your ability to handle other credit and debt obligations in the past 24 months will be scrutinized. This includes:
Rental and mortgage history
If you’ve paid your rent or mortgage on time over the last two years, VA lenders feel more confident that you’ll pay a new mortgage on time.
Last 90 days of credit activity
Lenders analyze your payment history, unpaid balances and monthly payments to see how well you manage debt, such as credit cards, student loans and car loans.
Employment and residency history
Recently discharged veterans should provide information about any deployments and military job experience if they have less than a two-year job or address history.
Federal debt
Government-approved lenders run your information through CAIVRS (Credit Alert Verification Reporting System) to verify that you have no delinquent federal debts, such as student loans or previous VA loans.
History of foreclosure or bankruptcy
VA guidelines allow you to take out a VA loan within two years of a foreclosure or Chapter 7 bankruptcy. That’s less than the three to seven years you’d have to wait to get a new conventional or FHA loan.
Debt-to-income (DTI) ratio There is no hard-and-fast rule about how much debt you can carry and still qualify for a VA loan. However, if your DTI ratio is above 41%, your underwriter will have to look into the reasons why and evaluate whether you can afford the loan.
Comparison shop no matter your credit score
Shop around and meet with at least three to five lenders before you decide on a loan. Whether you have a stellar or bad credit score, shopping with multiple lenders allows you to compare offers and loan terms side by side — a process that can save you thousands in the long run. Now is the time to ensure you’re getting a competitive rate with the lowest VA closing costs.
How to improve your credit score for a VA loan
You may be able to get a VA home loan with bad credit, but you’ll pay a higher interest rate and may end up with a higher monthly mortgage payment. A credit score of 740 or higher will earn you the most competitive interest rate offers.
Here are five simple steps you can take to pump up your credit score and snag a lower VA interest rate:
FAQs
The U.S. Department of Veterans Affairs doesn't set a specific VA loan credit score requirement. Lenders, however, can set their own minimum requirements for a VA loan. Most require a score of at least 620, but some go as low as 500.
What is the lowest credit score you can have for a VA loan? ›
The U.S. Department of Veterans Affairs doesn't set a specific VA loan credit score requirement. Lenders, however, can set their own minimum requirements for a VA loan. Most require a score of at least 620, but some go as low as 500.
Can I get a VA loan with a 580 credit score? ›
The Department of Veterans Affairs (VA) has no minimum credit score requirement for VA loans. However, mortgage lenders offering VA loans set minimum credit scores to determine your ability to repay the loan. Most VA lenders require a minimum credit score of at least 620.
What is the minimum credit score for a VA loan in 2024? ›
But because the loan is government-backed, lenders often allow for lower credit scores than they do for regular mortgage applicants: A credit score of 620 is typically the minimum requirement for a conventional mortgage, some VA lenders may go as low as 580.
What is the minimum credit score for VA cash-out? ›
Lenders will document credit, income, employment and assets for homeowners seeking a Cash-Out refinance. Guidelines and requirements for minimum credit score, maximum debt-to-income ratio, derogatory credit and more can vary by lender. The credit benchmark for a VA Cash-Out refinance is often a 620 minimum.
Are VA loans hard to get approved? ›
VA loan denial isn't uncommon, but your odds are generally better with a VA loan. According to HMDA data, 12.93% of VA loan applications received a denial in 2022, compared to 17.29% of FHA loans and 17.9% of conventional loans. While not uncommon, many scenarios may be preventable.
Can I buy a house with 600 credit score VA loan? ›
The VA doesn't have a minimum credit score requirement. Instead, lenders can set their own requirements. At Rocket Mortgage, the minimum qualifying credit score is 580. Keep in mind, you can qualify for more favorable terms with a higher score.
Can I get a VA loan with a 550 score? ›
We can often accept a minimum credit score as low as 550 when you want to tap into your home's equity with a VA loan. At Freedom Mortgage, we can also help you refinance your VA loan with an easy credit score qualification using the VA IRRRL streamline program.
Can I use my VA loan with bad credit? ›
If having a low credit score is a concern, a VA home loan could still make home ownership possible. VA does not have a minimum credit score; if one is imposed, it is by the private lender and you can always shop a different lender.
What is the highest VA loan you can get? ›
Eligible Veterans, service members, and survivors with full entitlement no longer have limits on loans over $144,000. This means you won't have to pay a down payment, and we guarantee to your lender that if you default on a loan that's over $144,000, we'll pay them up to 25% of the loan amount.
Income needed for a VA loan
The VA home loan program doesn't have minimum or maximum income limits. But your mortgage lender will review your personal income to determine how large of a monthly payment you can afford.
What credit score do you need for veterans first mortgage? ›
Veterans First currently requires a FICO score “around 600” for a VA loan. Does Veterans First do VA cash-out refinancing? Yes, you can apply for VA cash-out refinancing with Veterans First Mortgage.
What credit score do you need for a USAA home loan? ›
What credit score do you need for a USAA mortgage? A minimum 620 credit score is necessary for conventional and VA home loans. Other factors also apply including your DTI ratio, current income, employment history and down payment requirements.
What is the minimum FICO score for a VA loan? ›
The VA doesn't have a set minimum credit score that's necessary to qualify for a VA loan, but mortgage lenders do. Each lender can set its own credit score minimum based on what score they're comfortable accepting. Depending on the lender, you may have to hit a minimum credit score of 580 for a VA loan.
Does the VA check your credit score? ›
The VA doesn't set a minimum credit score for VA loans at the program level. Instead, the VA relies on lenders to ensure borrowers are a satisfactory credit risk. VA lenders typically require a FICO score of at least 620. High loan amounts, such as those exceeding $1 million, may require a higher credit score.
Are VA loans credit lenient? ›
Easier qualifications. The VA doesn't set a credit score minimum for borrowers, but some VA lenders might. Generally, this is around 620, the same as a conventional loan — though many may allow for lower scores.
Are VA loans hard to close? ›
How is Closing on a VA Loan Different? Closing rates on a VA loan are comparable to other loan types with a closing rate of 74.3%, compared to 74.1% of all mortgages. Conventional loans have a 75.2% closure rate. Selecting a VA-approved lender with in-house streamlined underwriting services will expedite the process.
What is the minimum down payment for a VA loan? ›
Do VA Loans Require A Down Payment? VA loans are attractive because they usually don't require any down payment. This is an important benefit for home buyers who are short on cash. A down payment of 10% on a home costing $240,000 comes out to $24,000.
Can I use my spouse's credit score for a VA loan? ›
In many states, the lender won't consider your spouse's credit score if they aren't on the loan. But if you add your spouse as a co-borrower, their credit score will affect your VA loan.
