What Is the Minimum VA Loan Credit Score? | LendingTree (2024)

FAQs

What Is the Minimum VA Loan Credit Score? | LendingTree? ›

There is no minimum score for getting a VA home loan. However, it may be harder to find a lender (remember, the VA is guaranteeing the loan, not lending the money) if your credit score is under 620. Let's say you have a credit score of 550. Most lenders won't make loans to you.

There is no minimum score for getting a VA home loan. However, it may be harder to find a lender (remember, the VA is guaranteeing the loan, not lending the money) if your credit score is under 620. Let's say you have a credit score of 550. Most lenders won't make loans to you.

Veterans United typically requires a credit score minimum of 620 to qualify for a VA loan. You also need to meet ability-to-repay guidelines related to things like debt-to-income (DTI) ratio, residual income and more. Guidelines can vary based on your specific situation.

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.

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.

While the Department of Veterans Affairs doesn't impose a minimum credit score for VA loans, many individual lenders require scores of at least 620. Finding a lender to approve a VA loan with a lower score is possible – but challenging.

Typically, VA lenders look for a credit score of around 620, but a lower score may be approved with compensating factors. The VA does not set a minimum credit score to qualify for a loan, so credit score minimums will vary by lender and other factors.

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.

About VA Loan Limits

The standard VA loan limit in 2024 is $766,550 for most U.S. counties, increasing from $726,200 in 2023. VA loan limits also increased for high-cost counties, topping out at $1,149,825 for a single-family home. VA loan limits do not represent a cap or max loan amount.

must have served at least 181 days of continuous active duty and been discharged or released under conditions other than dishonorable). If you served less than 181 days, you may be eligible if discharged because of a service-connected disability.

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.

It's generally easier to receive a VA loan approval than a conventional mortgage because of the low credit score requirements for VA loans. The Department of Veterans Affairs itself doesn't require a minimum credit score.

For all cash-out refinances paying off an existing VA loan seasoning certification is required. The number of days from closing of loan being refinanced and loan closing of new loan will auto-calculate and cannot be less than 210 (days) or the guaranty will not be issued.

As we mentioned, the VA doesn't impose a minimum credit score for VA home loans. Instead, it requires lenders to look at the borrower's overall risk profile. However, lenders can and do set their own underwriting requirements, and many want to see a credit score for VA loans of 620 or higher.

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 VA interest rate offers will be. Read more about VA loan requirements, best lenders, and how to apply.

Common Reasons VA Loans are Denied

Poor credit. Significant changes in credit. Income outside the qualification range. High debt-to-income ratio.

You'll typically need a credit score of 620 to finance a home purchase. However, some lenders may offer mortgage loans to borrowers with scores as low as 500. Whether you qualify for a specific loan type also depends on personal factors like your debt-to-income ratio (DTI), loan-to-value ratio (LTV) and income.

It is 150 points away from being a “good” credit score, which many people use as a benchmark, and 90 points from being “fair.” A 550 credit score won't knock any lenders' socks off, but it shouldn't completely prevent you from being approved for a credit card or loan, either.

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. This involves borrowing cash from your home's equity.