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VA Loan Credit Score 580+

Jim Quist Jul 5, 2025 5:00:00 PM
VA Loan Credit Score 580 or higher
VA Loan Credit Score 580+
5:06

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:

  1. Apply online and authorize a free credit check.
  2. Upload your income documents to our website.
  3. 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.

💬 Question?
NewCastle AI Guide
👋 Hi there! I’m Hal, your NewCastle AI Guide.
I’m here to help with general questions about home loans.
For personalized guidance, I can connect you with one of our expert loan officers.

 

JIM QUIST
President and Founder of NewCastle Home Loans. Jim has been in the mortgage business for 25+ years.

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