VA
Credit Requirements

Minimum credit score: VA loans do not have a minimum credit score requirement, but lenders may have their own credit score requirements, typically ranging from 580 to 620. A higher credit score can often result in better loan terms and interest rates.
Credit history: VA loans require a stable credit history, with no recent patterns of late payments or high credit utilization. A history of responsible credit usage, such as on-time payments and low credit card balances, is preferred.
Credit inquiries: VA loans consider all credit inquiries made within the past 90 days, including hard credit pulls for credit cards, auto loans, or other credit applications. Multiple credit inquiries can negatively impact your credit score and may be viewed as a sign of credit risk.
Collections and tax liens: VA loans do not allow for outstanding collections or tax liens, unless they can be fully satisfied or resolved before closing.
Foreclosure and bankruptcy: If you have a recent foreclosure or bankruptcy on your credit report, you may not be eligible for a VA loan. VA loans typically require a waiting period after a foreclosure or bankruptcy, which can range from 2 to 3 years or more, depending on the circumstances.

– Minimum credit score of 580 for all borrowers

– All loans must be underwritten by Fannie Mae or Freddie Mac’s automated underwriting system

– Any derogatory credit history will require additional underwriting review

– Mortgage rating must reflect any derogatory history in the last 12 months

– Credit report for non-borrowing spouse must be pulled in community property states with any debt included in qualifying ratios

It’s essential to review your credit report and work on improving your credit score before applying for a VA loan. A higher credit score can lead to better loan terms, lower interest rates, and more favorable loan approval. Consult with a VA-approved lender or financial advisor for personalized guidance on VA loan credit requirements and how to improve your credit score.