A good credit score is an excellent starting point for anyone considering a mortgage, including a VA loan. However, one of the best benefits of the VA loan program is its relaxed credit requirements.
Potential borrowers dont have to possess blemish-free credit reports and elite credit scores to secure VA financing or get advantageous rates and terms. The VA loan program seeks to accommodate as many military buyers as possible with a simple and accessible mortgage.
Getting a VA loan with a 600 credit score is possible, but not guaranteed. As a veteran myself, I understand the confusion around VA loan requirements. The VA doesn’t actually issue loans or set minimum credit scores – they just guarantee loans from private lenders. This means each lender has their own credit policies.
In this article, I’ll clear up whether or not you can get a VA mortgage with a 600 credit score. I’ll also give tips to improve your chances of approval. Stick with me!
VA Loan Credit Score Requirements
First let’s look at the baseline VA loan credit score requirements
-
The VA has no published minimum credit score They let lenders set their own policies
-
Most lenders want scores of 620-640 or higher for their best rates/terms.
-
You can potentially get approved with scores as low as 580-600, but expect stricter limits on debt-to-income ratios.
Why VA Loans Are More Lenient
VA loans are insured by the government, so lenders can be more flexible than conventional mortgages. Two key advantages if your score is 600-619:
-
No down payment required – VA loans need 0% down, while FHA requires at least 3.5%.
-
No monthly mortgage insurance – VA loans don’t charge monthly MI premiums like FHA & conventional loans.
These perks make VA loans favorable for borrowers with lower credit scores or savings. Lenders know the VA will reimburse them if you default, so they can take more risk.
Tips to Improve Your Chances
If your score is below 620, getting it higher can really pay off. Here are my tips as a loan officer:
-
Pay down revolving balances – Credit utilization is a big factor. Below 30% is ideal.
-
Pay all bills on time – Payment history is huge. Even one 30-90 day late can hurt.
-
Limit credit inquiries – Each application causes a hard inquiry that dings your score.
-
Monitor your credit report – Dispute any errors with the credit bureaus.
-
Add positive information – Become an authorized user on someone else’s account.
-
Watch debt-to-income – Lenders limit DTIs more tightly for lower scores.
-
Bring in a co-signer – Adding someone with better credit can offset your score.
-
Work on credit for 2-3 months – It takes time for positive changes to impact your scores.
Sample Lender Minimums for VA Loans
Wondering if lenders will approve VA loans for your 600 credit score? Here are some published minimums from popular lenders:
-
Veterans United – 620
-
Navy Federal Credit Union – 620
-
USAA – 620
-
Fairway Independent Mortgage – 600
-
Movement Mortgage – 580
-
Caliber Home Loans – 580
As you can see, 600 is a very common minimum for VA approval. I always recommend applying with multiple lenders to compare options. Even a 10 point difference in your score could change the loan programs you qualify for.
Can I Get a VA Loan with Bad Credit or No Credit?
What if your credit score is below 600 or you have no credit history at all? Don’t worry – you still have options with VA loans!
Here are some tips:
- Shop lenders that go down to 580 or no minimum score
- Make a larger down payment to offset risk
- Add a co-signer with strong credit
- Document reliable 12 months of non-traditional credit payments
- Apply for a credit-builder loan to establish positive history
VA loans give more flexibility than conventional mortgages if you have credit challenges. Focus on compensating for your weak areas rather than your score alone.
Should I Just Wait and Improve My Credit First?
Trying to boost your credit before applying can certainly help your chances. But waiting comes with trade-offs:
- Interest rates change constantly – they could go up while you wait
- Taking 6+ months delays you from getting into a new home
- Each credit application dings your score temporarily
My advice? If your score is 580-600, go ahead and apply now. Just be prepared to shop multiple lenders and perhaps adjust your budget. If you’re below 580, taking 2-3 months to improve your credit is probably wise.
The Bottom Line
VA loans are a great option for veterans, but having a 600 credit score doesn’t guarantee approval. While possible, you may need to adjust expectations or improve your credit first. The key is knowing each lender’s requirements and compensating for weaker areas.
Why doesn’t the VA set a minimum credit score?
Its important to understand the VAs role in the VA loan process. The VA doesnt set a minimum credit score requirement but instructs lenders to make sound judgments.
The VAs role is to oversee the program and guarantee a portion of each loan in case of default. But the VA does not issue loans, and the agency does not enforce credit score minimums. Private lenders handle both of these duties.
Most VA lenders use credit score benchmarks. Applicants with scores below a lenders standard usually cant be approved for VA financing. That minimum will vary from lender to lender.
VA Loan Credit Score FAQs
Below are common questions around VA loans and credit.
VA Loan Credit Score Requirements: NO Minimum Credit Score Required!?!
FAQ
Can I use my VA loan with a 600 credit score?
What is the lowest credit score to qualify for a VA loan?
How much of a loan can you get with a 600 credit score?
Can I get a VA home loan with a 650 credit score?
Can you get a VA loan if you have bad credit?
If you have damaged credit, make sure to shop around — low credit mortgage lenders do exist who will give loans to veterans with bad credit scores. VA loans can be accessible to those with scores in the 500s and low 600s. However, as with any type of mortgage loan, the higher your credit score, the lower your interest rate offers will be.
Do VA loans have a minimum credit score?
– At **Rocket Mortgage**, the minimum qualifying credit score is **580**, and the VA guarantee allows lenders to assist borrowers with less-than-perfect financial histories[4].
How does a VA mortgage lender determine your credit score?
Lenders will review your credit, debt and income to decide whether you qualify and to determine the interest rates they will offer. The VA doesn’t set a minimum credit score to qualify for a loan. But VA mortgage lenders can set their own minimum standards for FICO credit scores, which are typically in the low- to mid-600s.
Who can get a VA loan with a 550 credit score?
Why Freedom Mortgage stands out: People with credit scores as low as 550 may qualify for a VA loan with Freedom Mortgage. The lender offers VA purchase, VA streamline refinance (also called interest rate reduction refinance, or IRRRL), and VA cash-out refinance loans.