What is the credit score for a VA loan?

The Department of Veterans Affairs (VA) has no minimum credit score requirement for VA loans. However, mortgage lenders offering VA loans set minimum credit scores to determine your ability to repay the loan. Most VA lenders require a minimum credit score of at least 620. The exact requirement may be higher or lower, depending on the lender. You can get approved for an affordable VA loan when your credit score is 580 or higher. This means you can use your VA benefits to buy a home with no down payment when your credit is less than perfect. Then, enjoy a low rate and monthly payment with no mortgage insurance. Check out our VA loan calculator to view current VA loan rates, payments, and costs. VA credit score

How long before my credit score expires?

Your credit report and score are good for four months. After that, they expire, and the lender generates a new one. The lender uses the new report and score to make a loan decision and calculate the interest rate so that a lower score could affect your loan. Maintain a good credit score and avoid making significant changes until you buy a house. Continue paying your bills on time and wait to make big purchases on credit. Don't take out a loan to buy a car or open a credit card to purchase furniture for the new place. Lenders monitor your credit during the mortgage process. They know when you open new accounts, and they count the new debt when underwriting your loan application. How long does a mortgage pre-approval last?

Bankruptcy - How long is the waiting period for a VA loan?

The waiting period for a VA loan after bankruptcy varies depending on the type of bankruptcy, the circumstances leading up to it, and the lender. NewCastle Home Loans' waiting period for a VA loan after bankruptcy is as follows: Chapter 7 bankruptcy : Two years from the date of discharge Chapter 13 bankruptcy : One year from the date of discharge Additionally, even if you meet the waiting period requirement, you may still need to demonstrate a solid credit history and financial stability to qualify for a VA loan. We may ask you for a letter of explanation and documentation of your bankruptcy, such as court records or bankruptcy discharge papers.

Short sale - How long is the waiting period for a VA loan?

The waiting period for a VA loan after a short sale varies depending on the circumstances leading up to the short sale and your credit history. If you use NewCastle HomeLoans for your VA loan, you might not have a waiting period after a short sale - as long as you prove both of the following are true: The short sale didn't affect your payment history on the property, and The short sale resulted from a documented extenuating circumstance, such as a natural disaster or job loss. Supporting documents like a letter of explanation and a Closing Disclosure from the short sale would prove the circumstances.

Judgment - How long is the waiting period for a VA loan?

You can get a VA loan if you have a judgment on your credit report, but it may be more difficult. A judgment is a court ruling that results from a creditor suing a borrower and winning a lawsuit for an unpaid debt. Judgments must be paid in full or need a repayment plan with at least 12 timely payments.

Foreclosure - How long is the waiting period for a VA loan?

You can get a VA loan if you previously lost a home to foreclosure after a two-year waiting period with no additional requirements. However, you may be eligible after one year if both of the followingare true: You re-established good credit by opening at least two accounts, like cars or credit cards, and made payments on time for at least 12 months. You can prove that the foreclosure was caused by circumstances beyond your control, such as unemployment, prolonged strikes, and medical bills not covered by insurance. The lender will be able to review your credit history and financial situation and help you understand whether you can qualify for a VA loan after a foreclosure.

Does a short sale or foreclosure affect a VA loan?

A previous short sale or foreclosure can impact your VA entitlement for a new VA loan. VA entitlement is the amount of money the VA is willing to guarantee on a VA loan. Suppose you previously lost a home to a short sale or foreclosure, and the loan on the house was a VA-guaranteed loan. In that case, you may not have full entitlement available. Check your VA Certificate of Eligibility to ensure you have sufficient entitlement for a VA loan.

VA Loan Credit Score 580+

Q: Which credit score do lenders use for VA loans?

Mortgage lenders offering VA loans check all three credit bureaus, Equifax, Experian, and TransUnion, as part of the home loan process. The credit bureaus maintain records of your credit history, including information about credit accounts, loans, and payment history. Lenders use this information to determine your ability to repay the loan. By reviewing your credit report from all three credit bureaus, lenders get a complete picture of your credit history and financial stability. The credit bureaus give you a credit score. Your credit score predicts how likelyyou are to repay the loan. Based on your credit history. The scores range from 300 to 850. The higher your score, the better. Lenders use the middle credit score to qualify you for a VA loan. The qualifying score is the lower middle score for the borrower and any co-borrowers for the loan. For example, if you apply by yourself and your credit scores are600, 610, and 620, your qualifying credit score is the middle of 610. Then, let's say you add your spouse to the loan application, her scores are 700, 710, and 720, and her qualifying score is 710. In this case, the lower-of-the-middle credit score is 610, so the lender would use 610 to qualify you for the mortgage. Remember that even if you meet the minimum credit score requirement for a VA loan, you may still need to demonstrate a solid credit history and financial stability to qualify. Does getting pre-approved hurt my credit?

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VA Loan Credit Score 580+

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Think your credit score is too low for a VA loan? You may still qualify, with a score as low as 580. Here's how it works.

What is the minimum credit score required for a VA loan?

You can get approved for a VA loan with a credit score as low as 580.

The Department of Veterans Affairs (VA) doesn’t set minimum credit scores, but lenders do. Many large banks and online lenders require a score of 620 or higher.

At NewCastle Home Loans, we often approve VA loans with scores starting at 580 in Florida, Illinois, Indiana, and Tennessee.

Keep in mind that even with the minimum 580, you’ll still need a steady income and a solid credit history.

David, a Chicago veteran, applied for a VA loan through a national lender. They denied him because his score was 618.

Later that day, he applied with NewCastle Home Loans, a local VA-approved mortgage lender.

The good news is that we pre-approved him a few hours later, at a lower rate, giving him the green light to shop for a home.

Does a lower credit score result in a higher interest rate?

Yes. If your credit score is below 640, you can expect to pay a higher interest rate on your VA loan.

That’s because your credit score signals how likely you are to repay the loan. A lower score means a higher risk for the lender. To offset that risk, lenders increase your rate.

Since rates vary by lender, it’s important to shop around. Some lenders are more competitive than others, particularly when working with borrowers who have lower credit scores. Comparing at least two VA lenders can help you find the best deal.

Big banks and national online lenders tend to charge the highest rates to veterans with lower credit scores.

In contrast, local lenders like NewCastle Home Loans offer more competitive rates, even if your score isn’t perfect.

Compare for yourself. Start by clicking below to view today’s rate, payment, and closing costs for properties in Florida, Illinois, Indiana, and Tennessee.

Which credit score do lenders use for VA loans?

Lenders use your middle credit score to qualify you for a VA loan.

All mortgage lenders offering VA loans pull scores from Equifax, Experian, and TransUnion. Then, they use the score that falls in the middle. If you apply with a co-borrower, the lender uses the lower of the two middle scores.

Many large banks and online lenders require all three scores to proceed with your VA loan application. However, if you have at least one qualifying score, NewCastle Home Loans can help you purchase a house using your VA benefits.

We can approve your VA loan even if you have a limited credit history.

If your report shows only two scores, we use the lower of the two.

If you have just one credit score, because only one bureau has enough data, we use that score to qualify you.

Here’s a table showing how we determine your qualifying credit score for a VA loan.

Which Credit Score do VA Lenders Use?
Scenario	Credit Scores	Qualifying Score
1 Borrower, 3 Scores	590, 618, 621	618 (Middle Score)
1 Borrower, 2 Scores	590, 618	590 (Lower Score)
1 Borrower, 1 Score	590	590 (Only Score)
2 Borrowers, 3 Scores	Borrower: 590, 618, 621 Co-Borrower: 700, 710, 715	618 (Lower Middle Score)

David’s scores were 590, 618, and 621. His qualifying score was 618.

If his wife applied with him and her middle score was 710, we’d still use David’s 618.

How to check your credit score for a VA loan

The best way to check your credit and find out if you qualify for a VA loan is to get pre-approved by a VA-approved mortgage lender.

When you apply for pre-approval, the lender will review your credit report and use your mortgage credit score, which differs from the score you see through your credit card provider or free credit apps. Those services use different scoring systems, which can be inaccurate for mortgage decisions.

A lender’s credit check gives you the real score that determines your loan eligibility and interest rate. It also helps estimate how much you can borrow based on your income, assets, and existing debts.

If you're actively house-hunting, a verified pre-approval from NewCastle Home Loans puts you ahead.

Our certified underwriters review your credit, income, and funds, ensuring you meet VA loan guidelines before you make an offer.

A verified pre-approval letter from NewCastle gives sellers confidence that your loan will close on time, giving you an edge in a competitive market.

David used his verified pre-approval to make an offer on a condo in Chicago's Edgewater neighborhood.

The property sellers chose his offer over a higher one because his pre-approval was stronger.

They trusted his loan would close quickly without any issues because the loan underwriter had already verified his financial information.

How to get pre-approved for a VA loan

Here’s how to get pre-approved for a VA loan:

Apply online and authorize a free credit check.
Upload your income documents to our website.
Get your credit score and verified pre-approval letter.

You'll receive your letter on the same day. You can rely on us while looking for a place to buy in Florida, Illinois, Indiana, or Tennessee. We'll update your letter, address any questions you may have, and guide you through the homeownership process to ensure everything goes smoothly.

VA loan resources

VA Buyer's Guide: The VA doesn't specify a minimum credit score for borrowers to be eligible for a VA loan

Credit reports and scores. Your credit history has a significant impact on your finances. Check the CFPB's website to learn how to correct errors and improve your credit record over time.

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