VA Home Loan Credit Score Requirements for 2021


VA home loans are a benefit of military service, making home ownership possible for many military personnel and their spouses. If you are wondering if your credit score meets VA loan requirements, here is what you need to know.

No minimum credit score

You read that right: the US Department of Veterans Affairs, which insures all VA home loans, does not require a certain credit rating. But private lenders who issue VA loans may have their own minimum credit score requirements, typically ranging from 580 to 660.

Better credit score = better rates and terms

While a low credit score won’t necessarily prevent you from getting a VA loan, a higher score can mean better interest rates or better loan terms.

A higher credit score can mean better interest rates or better loan terms.

“Each lender determines the percentage they are willing to offer to individual borrowers,” Curt Cashour, VA press secretary, said via email. “Generally speaking, lenders are able to give borrowers with excellent credit their best rates. “

It’s more than your credit score

In determining your ability to repay a VA loan, lenders take into account a variety of financial factors, including employment history and current income. You will also need to meet requirements such as length of service, service status and character of service.

Shopping VA Mortgage Lenders Is Essential

VA home loan requirements, including minimum credit score requirements, vary by lender. This is why it is so important to compare quotes from at least three VA lenders before choosing one for your mortgage. Besides the rates, be sure to assess customer service scores, closing costs, and the company’s level of experience with VA loans.

“Veterans need to make sure they look for multiple lenders when using their home loan to make sure they’re getting the best rates and terms available,” Cashour said.

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