Lenders like Freedom Mortgage use credit scores to help determine your eligibility for a VA loan and set your interest rate. Here’s what you need to know about VA loan credit scores!
What is the minimum credit score for a VA Loan?
A minimum credit score between 580 and 620 is typically needed for veterans and military personnel seeking a VA loan. At Freedom Mortgage, we have similar minimum credit scores for VA loans:
- When you want to buy a home with an VA loan, we can often accept a minimum credit score as low as 600.
- When you want to refinance a home with an VA loan, we can often accept a minimum credit score as low as 550.
Freedom Mortgage is committed to helping veterans become homeowners and we offer loans to veterans when they meet our minimum credit score requirements and other financial and income standards. We also offer VA IRRRL refinancing, which lets you get a lower rate on your VA loan with less paperwork and a faster closing.
What can affect your credit score?
Credit reporting agencies such as Equifax, Experian and TransUnion use the information in your credit report to calculate your credit score. Your score is influenced by things like …
- Payment history. Lenders like to see that you have a record of paying your bills in full and on time. A good payment history can increase your credit score. A history of paying bills late may decrease your score.
- Length of credit history. The length of time of your credit history affects your score. When you have consistently made your payments over a long period of time, this can raise your score.
- Credit mix. Having different types of loans – such as credit card, mortgages, and car payments – can influence your credit score.
- Bankruptcy. Your credit score can suffer if you’ve ever filed for bankruptcy. It is possible to improve your score after a bankruptcy and veterans can qualify for a VA loan after bankruptcy too.
Before you apply for a VA loan, review your credit report for errors and look for ways to raise your credit score. A higher credit score can improve your chances of getting a VA loan and might help you get a lower rate, too.
Talk to Freedom Mortgage about VA streamline refinancing
Freedom Mortgage is the #1 VA Lender1 in the USA. We are happy to work with veterans who have lower credit scores. To speak with one of our loan advisors about refinancing your VA loan, please visit our Get Started page or call 844-267-6544.
1.Inside Mortgage Finance, 2020