VA home loans are a benefit of military service, making homeownership possible for many service members and their spouses. If you’re wondering whether your credit score meets VA loan requirements, here’s what you need to know.
No minimum credit score
You read that right: The U.S. Department of Veterans Affairs, which guarantees all VA home loans, doesn’t require a certain credit score. But the private lenders that issue VA loans may have their own minimum credit score requirements, typically ranging from 580 to 660.
Better credit score = better rates and terms
Although a low credit score won’t necessarily prevent you from getting a VA loan, a higher score may mean better interest rates or loan terms.
As with other types of mortgages, lenders generally offer the best rates to borrowers with excellent credit.
It’s about more than your credit score
To determine your ability to repay a VA loan, lenders consider a variety of financial factors, including your employment, income and debt. You also will have to meet military service requirements to qualify.
Shopping VA mortgage lenders is essential
VA home loan requirements, including minimum credit score requirements, vary by lender. That’s why it’s so important to compare quotes from at least three VA lenders before choosing one for your mortgage. Besides rates, be sure to evaluate customer service ratings, closing costs and the company’s level of experience with VA loans.