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What is the minimum credit score for a VA loan?

Find out what VA loan credit scores you need

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What is the minimum credit score for a VA loan?

Having a good credit score can be an important part of getting a VA loan. That’s because lenders like Freedom Mortgage use your credit score to help determine your eligibility for a VA loan and set your interest rate.

Your credit score isn’t the only information we use to help us decide whether you qualify for a VA loan. We look at the complete picture of your finances because we are committed to helping veterans, active-duty service members, and their families finance homes with VA loans.

What are the VA loan credit score requirements at Freedom Mortgage?

At Freedom Mortgage, the minimum credit score we require depends on the purpose of the VA loan. Here are our current minimum credit scores:

  • When you want to buy a home with a 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 offer an easy credit score qualification.
  • When you want to get cash from your home equity with a VA loan, we can often offer an easy credit score qualification.

We offer VA IRRRL refinancing, which lets you get a lower rate on your VA loan with less paperwork and a faster closing. We can also help you tap your home’s equity to get money for important investments with a VA cash out refinance.

Does the Department of Veterans Affairs require a minimum credit score for VA loans?

No. The VA does not set a minimum credit score for the VA loans it guarantees. Instead, it asks lenders to look at the full loan profile of the person applying for a VA loan. Lenders can establish their own minimum credit scores for VA loans, however, which is why you might see different lenders requiring different scores.

Can you get a better credit score?

If your credit score is lower than the minimum your lender requires for a VA loan, this does not mean you cannot qualify for a VA loan in the future. You can look for ways to improve your credit score and try again!

Here are some of the factors credit reporting agencies such as Equifax, Experian and TransUnion use to calculate your credit score. Your credit 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.
  • Errors and mistakes. Sometimes your credit report contains mistakes that might lower your credit score. These mistakes can include on-time payments that have been reported as late, incorrect account balances, incorrect credit limits, and more. Contact the credit reporting agencies if you see errors and request that they fix them.

It can be a good idea to improve your credit score even when it’s higher than the minimum your lender requires for a VA loan. That’s because a higher credit score can improve your chances of getting approved for a VA loan and might help you get a lower rate, too.

Talk to Freedom Mortgage about VA loans

Freedom Mortgage is the #1 VA Lender1 in the USA. To speak with one of our loan advisors about buying or refinancing a home with a VA loan, please visit our Get Started page or call 877-220-5533.

1. Inside Mortgage Finance, Jan-Sept 2021

Sources:
Department of Veterans Affairs VA Loan Fact Sheet. Learn more at va.gov.
The Consumer Finance Protection Bureau. Learn more at consumerfinance.gov

Last reviewed and updated September 2021 by Freedom Mortgage Corporation

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