What Credit Score Do I Need for a VA Loan?

When you think about getting a mortgage, a few numbers probably come to mind. The price of the house you want to buy. The amount you want to save up for a down payment. And your credit score.

That last three-digit number plays a big role in the type of loan you’re able to get (and if you’re able to get one at all, for that matter). The better your credit score, the more likely you are to qualify for a mortgage with a low interest rate. The lower your score, the higher your odds of paying through the nose, or even getting your loan application denied.

It’s pretty key, then, to know what your credit score is and what kind of mortgage it can get you. That’s just as true when you’re getting a VA loan as anywhere else. That said, there are some differences about how your credit score applies when you get a mortgage backed by the Department of Veterans Affairs.

No minimum credit score with VA loans

Other federally-backed loan programs come with minimum credit score requirements. With a mortgage backed by the Federal Housing Administration (i.e., an FHA loan), you need a credit score of at least 580 to put 3.5% down, for example. 

But the VA doesn’t set a hard-and-fast floor on credit scores. Experts at the VA recommend checking your credit score because it will play into your mortgage. But they also acknowledge there’s no minimum number.

Unfortunately, the VA isn’t the only group involved in a VA loan. That’s because in most cases, the VA doesn’t lend the money to buy a house directly. Instead, you need to work with a VA lender. That’s any mortgage lender who has VA approval. 

Each lender has its own proprietary algorithm for deciding who can get a VA loan and what kind of interest rate they get. That minimum tends to fall around 620. But because there’s no credit score minimum enforced by the VA, you can shop around. If one lender denies you with a 610 credit score, for example, there’s always a chance that a different VA lender would approve your application. 

The big takeaway: The VA doesn’t have a minimum credit score required to get a VA loan, but individual lenders typically do. So while a score below 620 won’t disqualify you outright, it could make it harder to get approved for a VA-backed mortgage. 

Better credit for a better mortgage

Your credit score isn’t some switch that flips VA loans “on” or “off” for you. Instead, it’s one piece of the puzzle that lenders consider. 

When you apply for a VA loan, the lender tries to get an idea of your history with money and your current financial situation. Basically, they’re trying to see if you can repay the loan or not. 

If you look like a slam dunk to pay back every cent, they see you as a low-risk borrower. Lenders love low risk. It means they’ll get their money back plus interest, which keeps them profitable. As a result, when you look reliable in the eyes of a lender, they’re more likely to offer you a competitive interest rate. 

The reverse is also true. If your financial footing looks shaky, lenders might still approve you for a loan, but they’ll charge you more in interest. This is their way of hedging their bets. If you eventually stop repaying, at least they made more in interest along the way. 

This all ties back to your credit score. That three-digit number tells lenders how responsible you’ve been with past debt. A low score can signal a history of missed payments, or that you don’t have very much experience under your belt. A high score, on the other hand, says that you’ve done right by other groups that have lent you money in the past. 

So while a low score won’t automatically disqualify you, it can land you paying a lot more for your mortgage. If you can work on improving your score, you may save a good chunk of change in interest over the years. 

What to expect with VA loans based on your credit score

Because every lender uses its own system for evaluating VA loan applicants, we can’t say definitively what your score will get you. But we can give you a general idea of what you can expect.

Take this all with a grain of salt. If you have a bad credit score but you now have a steady, high-paying job and a lot in savings, for example, it can offset some of your risk. Your credit score is just one component that lenders evaluate when deciding if they’ll offer you a VA loan, and at what interest rate. 

Hopefully, all of this already has you thinking that you should apply with multiple lenders. You absolutely should. Because every VA lender weighs credit scores differently, you can’t know who will offer you the lowest interest rate until you get multiple quotes. 

We can help there. We have a table of leading VA lenders and their rates. You can get quotes from each of them with just a few clicks. Explore your options so you can get the best VA loan for your specific situation, including your credit score.

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