The U.S. Department of Veterans Affairs (VA) doesn't set a specific VA loan credit score requirement. Lenders, however, can set their own minimum VA loan requirements. Most require at least a 620 score, but some go as low as 500.
The maximum amount you can get for a credit score of 500 will depend on the lender. As mentioned, some lenders will consider granting loans up to $10,000. There are other lenders who don't have a minimum credit score.
While VA does not have a minimum credit score requirement, lenders will use your credit history to assess your creditworthiness. A higher credit score may help you qualify for better loan terms.
VA loan denial isn't uncommon, but your odds are generally better with a VA loan. According to HMDA data, 12.93% of VA loan applications received a denial in 2022, compared to 17.29% of FHA loans and 17.9% of conventional loans.
At a minimum, the property should be in livable condition with functioning electrical and plumbing systems. If the property doesn't pass inspection, you won't be able to buy it using this loan type. You also must use the property as your primary residence.
Yes, you can get a VA home loan with bad credit. The VA itself doesn't set a minimum credit score, so credit requirements are set by each lender.
Can you be denied a VA home loan? While it's less likely than with other types of home loans, it is possible. Being denied a VA home loan is hardly the end, and like homeownership itself, the loan approval process can take some maneuvering.
Generally, yes, this may be possible. Typically, VA lenders look for a credit score of around 620, but a lower score may be approved with compensating factors. The VA does not set a minimum credit score to qualify for a loan, so credit score minimums will vary by lender and other factors.
VA home loans have no income limits, but borrowers must demonstrate stable, reliable, and verifiable income. Lenders evaluate debt-to-income ratios and residual income to ensure borrowers can afford mortgage payments and essential expenses.
The lowest credit score typically required to buy a house is 500 with an FHA loan, which requires the borrower to make a 10% down payment. For credit scores of 580 or higher, a 3.5% down payment is sufficient. Conventional loans typically require a minimum credit score of around 620.
On a $40,000 salary, you could potentially afford a house worth between $100,000 to $140,000, depending on your specific financial situation and local market conditions. While this may limit your options in many urban areas, there are still markets where homeownership is achievable at this income level.
VA loans have no downpayment requirements as long as the Veteran has full entitlement, but only 3-in-10 Veterans know they can buy a home loan with zero down payment.
FACT: Most VA loans don't take any longer to close than a conventional or FHA loan. The key is working with a lender who knows the process.
VA Home Loans have options for 100% financing, which means you don't have to save up for your new home. It makes getting your new home much quicker. VA loans do not require PMI, which will save you money every month on your mortgage payment.
The VA doesn't have a minimum credit score requirement. Instead, lenders can set their own requirements. At Rocket Mortgage, the minimum qualifying credit score is 580. Keep in mind, you can qualify for more favorable terms with a higher score.
Applicants who have a minimum credit score of less than 500 are not eligible for FHA mortgages. Those with credit scores of 500 or better are eligible for 100% FHA loan financing with no down payment required when using the FHA 203(h), Mortgage Insurance for Disaster Victims.
Vacant land is not eligible for VA financing. You can't use a VA loan to purchase a plot of land, even if you plan to put a home on it in the future. In order to use a VA loan to purchase land, you must build a primary residence on the property immediately.
During your application process, a VA-certified appraiser will check to make sure the property meets MPRs. At a minimum, the home must be safe, sound, and sanitary with a good foundation, structure, and roof. The appraiser will also look for basic requirements like clean water, heat, power, and no health hazards.
Unfortunately, some sellers may hold preconceived notions about VA borrowers that are not based on facts. For example, they may believe that VA buyers are less financially stable or responsible than those using conventional loans. This bias can lead to hesitation in accepting VA offers.
You may be wondering how often underwriters denies loans? According to the mortgage data firm HSH.com, about 8% of mortgage applications are denied, though denial rates vary by location and loan type. For example, FHA loans have different requirements that may make getting the loan easier than other loan types.
About VA Loan Limits
The standard VA loan limit in 2025 is $806,500 for most U.S. counties, increasing 5.2% from $766,550 in 2024. VA loan limits also increased for high-cost counties, topping out at $1,209,750 for a single-family home. VA loan limits do not represent a cap or max loan amount.
At Veterans United, we typically look for a minimum median FICO Score of 620. If your credit isn't quite up to par, don't worry. We've got a team of credit consultants to work to improve your credit score — no strings attached.
The VA funding fee is a one-time payment that the Veteran, service member, or survivor pays on a VA-backed or VA direct home loan. This fee helps to lower the cost of the loan for U.S. taxpayers since the VA home loan program doesn't require down payments or monthly mortgage insurance.