VA Loan Credit Score Requirements
You served. You earned this.
What Credit Score Do You Need for a VA Loan?
The Department of Veterans Affairs does not set a minimum credit score for VA loans. However, most VA lenders look for a score between 580 and 620 or higher. Lower scores may still be accepted, provided there are strong compensating factors.
Why the VA Loan Is More Forgiving Than Other Mortgages
- No official minimum credit score from the VA
- Past credit issues don’t automatically disqualify you
- No mortgage insurance—even with lower scores
- Debt-to-income ratio flexibility
- Focus on your whole financial picture—not just your credit score
Credit Score Tiers & What They Mean for VA Buyers
| Credit Score Range | What It Means |
|---|---|
| 740+ | Excellent – Best rates and approval chances |
| 700–739 | Very Good – Strong approval potential |
| 660–699 | Good – Often approved with competitive terms |
| 620–659 | Fair – May need additional documentation |
| Below 620 | Possible – Compensating factors are usually required |
Pro tip: We’ve helped Veterans buy homes with scores below 600. Talk to us before assuming you don’t qualify.
What Are Compensating Factors?
If your credit score is below 620, we may still be able to approve your VA loan if you show financial strength in other areas like:
- Stable employment
- Low debt-to-income ratio
- On-time rent history
- Cash savings or reserves
- VA residual income requirements met
Credit Issues That May Delay or Prevent VA Loan Approval
- Recent late payments
- High credit card balances
- Judgments or collections
- Bankruptcy or foreclosure history
We understand life happens. We’ll work with you to find the best path forward and determine if you’re still eligible.
Tips to Improve Your Credit Before Applying
- Pay down credit cards below 30% of their limit
- Avoid applying for new credit before your loan closes
- Dispute credit report errors
- Keep older credit accounts open
- Bring any past-due accounts current
Request a free credit review here – it’s fast, secure, and won’t affect your score.
Explore More VA Loan Resources
Let’s Talk About Your Credit & Your VA Loan Options
At American Hero Home Loans, we specialize in helping Veterans, servicemembers, and first responders become homeowners. Even if you’ve had some bumps in the road, let’s take a closer look at your situation together.
📞 Call us today or get started online here.
