BBM
Main pillars of the VA home loan benefit
- No downpayment required
(*Note: Lenders may require downpayments for some borrowers using the VA home loan guaranty, but VA does not require a downpayment)
- Competitively low interest rates
- Limited closing costs
- No need for Private Mortgage Insurance (PMI)
- The VA home loan is a lifetime benefit: you can use the guaranty multiple times
To be eligible, you must have satisfactory credit, sufficient income to meet the expected monthly obligations, and a valid Certificate of Eligibility
VA Home Loans Home
What is the Minimum Credit Score for a VA Loan?
The VA does not impose a minimum credit score for VA loans. According to Department of Veterans Affairs guidance on VA loans:
There is no minimum credit score requirement. Instead, VA requires a lender to review the entire loan profile. In other words, the VA wants lenders to look at
all of a loan applicant’s qualifications, not just credit scores (e.g. debt-to-income ratio, employment status/history, assets, etc.).
Individual Lender Requirements
Despite this VA flexibility, many individual lenders
do impose a minimum credit score requirement on VA loans. Generally speaking, lenders will require minimum credit scores of 580 to 620 to qualify for a VA loan.
Minimum Credit Score for VA Loan
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If Cory's late rental payments were not reported to the credit bureaus and he had sufficient credit history and income getting approved for a VA loan would not be that difficult for him.
It is a great benefit for Active duty and veterans. We have been fortunate enough to use it . My daughter and her now ex- husband (a veteran) used it when newly married. They did not have much credit history but were able to use payment history on utility bills, car insurance, etc. Their payment history ,their income, length of employment and debt to income ratio was sufficient enough to qualify though I think their interest rate was a point or 2 higher than was the average rate at the time.