The Department of Veterans Affairs sets the guidelines for lenders to follow, however lenders have the option to apply their own credit requirements. Below are the basic credit requirements for getting a VA Loan.
Credit Scores — All three credit scores from each of the 3 credit bureaus will be considered. The middle score of all three is the determining score. For example if your scores are 630/647/690 the 647 is the determining score. If you have a co-borrower or live in one of the following community property states: AZ, CA, ID, LA, NV, NM, TX, WA or WI, then the spouses credit must be considered regardless if he/she is on the loan. The lowest of the two middle scores are the determining factor.
The minimum determining credit score is 620.
Late Payments — It’s possible to get a VA loan even if you have some late payments on your credit file. How many, how often are concerns that must be considered. If you have 1-2 late payments, it’s typically not a problem. If you have several late payments over a period of months, then you may be considered a high risk.
Collections — It is possible to get a VA loan with a collection on your credit file, as long as the collection is not recent. You may be required to pay the collection before getting approved, ask your loan officer for details.
Bankruptcy — If you ever had a bankruptcy you can still get a VA Loan. However a bankruptcy is viewed as a onetime event, so your credit is expected to be good with no late payments or collection since the bankruptcy. Typically your bankruptcy must be about 4 years old to get approved, but discuss your situation with your loan officer.
[Download our VA Loan Credit Requirements file for more information]
If you have questions about your credit or want to know if your credit is acceptable for getting a VA Loan, contact us now and let a Veteran Loan officer provide you with a no obligation consultation.
If you don’t know your credit scores or what is being reported on your credit file, consider buying a copy of your report now! This will assist your loan officer with providing you the best guidance.
Get all 3 credit reports and scores now for FREE for 30 days, only $14.95 month after the first 30 days, cancel at anytime! www.TrueCredit.com
(We recommend you cancel after receiving your credit report, however if your credit does not meet the minimum VA loan requirements we recommend that you continue your subscription while you monitor your progress to improving your scores.)
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