What Is the Minimum VA Loan Credit Score?
The U.S. Department of Veterans Affairs (VA) doesn’t set a specific VA loan credit score requirement. Lenders, however, can set their own minimum VA loan requirements. Most require at least a 620 score, but some go as low as 500.
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 use a VA loan to buy a house with a 600 credit score, or even a 500? The answer is likely yes. If you have credit blemishes, make sure to shop around — there are mortgage lenders available 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 one of the lowest home minimum credit score requirements and, unlike FHA loans, don’t ask for a bigger down payment if you have low credit.
Don’t know your credit score? Get your free score on LendingTree Spring today.
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 Interactive 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 two years after 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 investigate the reasons why and evaluate whether you can afford the loan.
Comparison shop no matter your credit score
Shop around 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 740 credit score or higher will earn you the most competitive interest rate offers.
Here are five simple steps you can take to improve your credit score and snag a lower VA interest rate:
- Fix errors on your credit report: You can request free copies of your credit report from each of the three credit bureaus by going to AnnualCreditReport.com. If you find any information on those reports that isn’t accurate, use our guide on disputing credit report errors to have them removed.
- Pay your bills on time: Payment history accounts for 35% of your overall FICO score. Do your best to pay your bills on time and in full to make a positive impact.
- Be mindful of your credit usage: Your credit utilization ratio, which is the percentage of credit you’re using versus your total credit limit amount, accounts for another 30% of your overall FICO score. As a rule of thumb, it’s a good idea to try to keep your credit usage as low as possible — ideally under 30%.
- Wait to apply for new credit: Opening new credit accounts can also ding your score. When in doubt, wait until after you’ve gotten the keys to your new home to make any changes to your credit.
- Avoid cosigning any loans for others: Cosigning a loan means you’re liable for the payments if the other borrower defaults. Think carefully before taking on this responsibility for a loved one, especially if you’re planning on buying a home in the near future.
See current VA loan rates today.
Frequently asked questions
The VA doesn’t specify a minimum credit score. However, in practice, many lenders won’t accept a score below 620.
Yes, some lenders, like Rocket Mortgage and Carrington Mortgage Services, will accept credit scores lower than the standard 620 benchmark. You may just have to shop around to find the right fit.
VA loan denial is fairly uncommon. According to Home Mortgage Disclosure Act data, only about 8% of VA loans were denied in the second quarter of 2024, compared to 14% of FHA loans.
Still, the VA states that a borrower must have a “reasonable ability to repay the loan,” which means that factors like having a lower income or spotty employment history could jeopardize your approval.
Still, the VA states that a borrower must have a “reasonable ability to repay the loan,” which means that factors like having a lower income or spotty employment history could jeopardize your approval.
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