VA Loans are offered by the Department of Veteran’s Affairs (VA) and are intended to help veterans, active service members, and the spouses of fallen soldiers receive financing on a home. These loans are backed by the VA, and the agency will step in to pay off your loan if you are unable to do so. There are three criteria that must be met in order to qualify for a VA loan:
- Suitable Credit
- Sufficient Income
- Certificate of Eligibility
Learn more about how to apply for a VA Loan.
If you’re interested in finding out whether or not you qualify, you may be asking yourself: What is suitable credit?
VA Loan Credit Requirements
For VA Loans, this can be a tricky question to answer. There are no official credit score requirements detailed by the VA, as the VA is not the lender. In order to apply for a VA loan, you’ll have to work through a VA-Approved lender. As such, minimum credit score requirements will vary from lender to lender. There are a few recommendations that popular VA-Approved lenders have for prospective applicants when it comes to credit score. Typically, these lenders will ask for a credit score of at least 620.
What if My Score is Too Low?
If, after conducting a bit of research, you find that your credit score is too low to qualify for a VA loan, don’t give up! You may still qualify for a VA loan if you have these 4 things:
- Little to No Debt
- Steady Income
- No Civil Judgements
- No More Than 1 Late Payment in the Last 12 Months
If you’re still struggling to qualify for a VA loan, you may want to explore ways to boost your credit score.