VA Loan Credit Score

Overlays, AUS Findings, and Approval Factors

Minimum Credit Score for a VA Loan: What Lenders Actually Require

Written by: Matt SchwartzNMLS#151017Written by: Matt Schwartz (NMLS 151017)

Reviewed by: Kenneth Schwartz, Loan OfficerNMLS#1001095Reviewed: Kenneth Schwartz (NMLS 1001095)

Updated on October 5, 2026

Primary sources:
VA Pamphlet 26-7, Chapter 4: Credit Underwriting

VA Loan Guaranty Conference 2023

FICO Score Versions

The VA publishes no minimum credit score for VA loans. The VA Loan Guaranty Conference 2023 states: "No minimum credit score required." Every score floor a borrower encounters is a lender overlay, not a VA rule. Automated underwriting evaluates the full file, and Chapter 4 states compensating factors are "especially important when reviewing loans which are marginal," including excellent credit history, high residual income, and significant liquid assets.

Next step:
Check Your VA Loan Eligibility

Official VA Rules

VA policy: The VA sets no minimum credit score. Ch. 4, Topic 7b
Published floors: Freedom Mortgage publishes 550. Other lenders in Table 1 do not publish a VA floor. VU, FM websites
AUS evaluation: Automated underwriting evaluates the full file including credit, DTI, residual income, and reserves together. Ch. 4, Topic 8
No credit penalty: The VA does not consider the absence of established credit a negative factor. Ch. 4, Topic 7b

Score Band Reality

AUS risk classification: The systems "do not approve or disapprove loans. They merely determine a risk classification." Ch. 4, Topic 8a
floor: publishes a 620 minimum for VA loans. VU website
Freedom Mortgage floor: Freedom Mortgage publishes a 550 minimum for VA loans. FM website
Other verified lenders: Cross Country, Navy Federal, Guild, and NewDay do not publish a VA score floor on their websites. Lender websites

What Drives Approval

Payment history: Chapter 4, Topic 7b states the "borrower's past repayment practices on obligations is the best indicator" of willingness to repay. Ch. 4, Topic 7b
Residual income: High residual income is a compensating factor per Topic 10d. Meeting the guideline alone is not a compensating factor. Ch. 4, Topics 10a, 10d
Cash reserves: Significant liquid assets are a VA compensating factor. Ch. 4, Topic 10d
Compensating factors: Chapter 4, Topic 10d lists high residual income, significant liquid assets, low DTI, long-term employment, and minimum payment shock among others. Ch. 4, Topic 10d

Rate and Cost Impact

No PMI: VA loans carry no monthly mortgage insurance at any score. The funding fee is a one-time cost. VA.gov
Funding fee: The VA funding fee is based on loan type, down payment, and usage history. Credit score does not change the fee. VA.gov
Full entitlement: Veterans with full entitlement have no VA loan limit, provided the loan amount is affordable and the appraisal supports the purchase price. VA.gov loan limits
VA guaranty: VA.gov states: "we guarantee to your lender that we'll pay up to 25% of the loan amount." VA.gov

Asked First

The Bottom Line Up Front

The VA publishes no minimum credit score. The lender's overlay, not the VA, determines whether a score qualifies. Automated underwriting evaluates credit alongside DTI, residual income, reserves, and employment documentation. A strong full-file profile can offset a lower score, and a weak full-file profile can undermine a higher one.

Among the lenders whose published minimums were verified for this page, the range is 550 to 620. Veterans below those floors still have the VA benefit available because the VA sets no minimum; the path depends on finding a lender whose overlay accepts the score and whose AUS risk classification supports the file.

What Is the Minimum Credit Score for a VA Loan

There is no VA minimum. The VA Loan Guaranty Conference 2023 states: “No minimum credit score required.” Every lender sets its own floor through lender overlays. A Certificate of Eligibility confirms a Veteran can use the benefit; the lender’s overlay determines whether they will fund it at that score.

A published minimum does not guarantee approval at that score. The table below shows what major VA lenders publish on their own websites, whether they offer manual underwriting, and the source page where the number was verified.

Lender requirements verified September 29, 2026.

Table 1. VA Loan Minimum Credit Score by Lender
Lender	Published VA Minimum	Manual UW Offered	Source	Verified Date
	620	Yes		Sep 29, 2026
Freedom Mortgage	550	Not stated	freedommortgage.com	Sep 29, 2026
Cross Country Mortgage	Not published. Confirm with lender.	Not stated	crosscountrymortgage.com	Sep 29, 2026
Navy Federal Credit Union	Not published. Confirm with lender.	Not stated	navyfederal.org	Sep 29, 2026
Guild Mortgage	Not published. Confirm with lender.	Not stated	guildmortgage.com	Sep 29, 2026
NewDay USA	Not published. Confirm with lender.	Not stated	newdayusa.com	Sep 29, 2026

Source: Each lender’s own published website, fetched via Playwright on the date shown. “Not published” means the lender’s website does not state a specific credit score floor for VA loans.

How VA Loan Credit Qualification Works

Four separate steps determine whether a VA loan file moves forward, and each step has a different owner.

Lender score overlay. The minimum score a lender will accept to begin processing a file. This is the lender’s internal risk requirement. The VA publishes no minimum.
AUS submission and finding. Automated underwriting evaluates the full file and returns a risk classification. The VA Loan Guaranty Conference 2023 states: “The AUS is not the decisionmaker, it is a tool” and “The underwriter is required to underwrite.” Chapter 4, Topic 8a states: “It is still the lenders underwriter’s decision whether or not to approve the loan.” A Refer classification means the underwriter reviews the file; it is not a denial.
Lender and investor overlay. The lender’s investor may have a separate overlay. When the file does not meet the investor’s overlay, the lender may decline even though the borrower met the lender’s published minimum.
Manual underwriting policy. Whether the lender will work a Refer file at all. This is a lender decision, not a VA rule.

What Each Credit Score Range Means for VA Loans

The VA publishes no score-to-AUS-result mapping. The finding depends on the full file, not a single score threshold.

Table 2. AUS Risk Classification by Score Range
Score Range	AUS Possibilities	Verified Lender Floors in This Range
620+	AUS evaluates the full file. The systems “do not approve or disapprove loans. They merely determine a risk classification.” (Ch. 4, Topic 8a)	publishes 620.
550 to 619	Same AUS evaluation. The risk classification depends on credit, income, and assets together. A Refer routes to manual review, not denial.	Freedom Mortgage publishes 550.
Below 550	Same AUS evaluation. No score-to-result mapping exists in the VA program.	No verified lender publishes a floor below 550 on their website.

Note: VA publishes no score-to-AUS-result mapping. AUS evaluates the full file, and the finding depends on all factors together.

What Lenders Look at Beyond the Credit Score

Payment behavior matters more than the score itself. A 610 with zero lates in 12 months is a fundamentally different file than a 660 with two recent 30-day lates.

VA underwriting puts significant weight on factors that the credit score alone does not capture. Debt-to-income ratio measures monthly obligations against gross income. Chapter 4, Topic 10b states that DTI “is a guide and, as an underwriting factor, it is secondary to the residual income.” A ratio greater than 41% “requires close scrutiny” unless “residual income exceeds the guideline by at least 20 percent.” VA also requires lenders to calculate residual income using the VA residual income chart, which measures how much cash remains after all major expenses.

Chapter 4, Topic 10d states that compensating factors “cannot be used to compensate for unsatisfactory credit” and that “the fact that a borrower has sufficient assets for closing purposes, or meets the residual income guideline, is not a compensating factor.” Valid compensating factors include high residual income, significant liquid assets, low DTI, long-term employment, minimal consumer debt, conservative credit use, satisfactory homeownership experience, little or no increase in shelter expense, Military benefits, sizable down payment, equity in refinancing loans, tax credits for child care, and tax benefits of home ownership.

Employment documentation also matters. Chapter 4, Topic 2e states: “Verify a minimum of 2 years of employment. Generally, in the borrower’s current position, 2 years of employment is a positive indicator of continued employment.” However, this is not a rigid requirement. Chapter 4 also states that “Two years of employment with the same employer is not required” and that employment less than 12 months may be considered stable based on past employment, training, and skills.

VA Rule vs. Lender Overlay

The VA program is more flexible than most lender overlays. Every row below where the lender overlay is stricter than the VA rule represents an opportunity to shop for a lender whose overlay aligns more closely with VA guidance.

Table 3. VA Program Requirements by Factor
Factor	VA Requirement	What to Ask the Lender
Credit score	“VA does not have a minimum credit score requirement.” (Ch. 4, Topic 7b)	“What is your minimum VA credit score, and does it differ for AUS vs. manual UW files?”
Max DTI	41% benchmark. “It is a guide and, as an underwriting factor, it is secondary to the residual income.” Above 41% requires close scrutiny unless “residual income exceeds the guideline by at least 20 percent.” (Ch. 4, Topic 10b)	“What is your maximum DTI for VA, and does strong residual income allow a higher ratio?”
Collections payoff	Not required for charge-offs or collections. “Non-medical collection accounts without established payment arrangements are to be included with a calculated monthly payment using 5% of the outstanding balance of the collection divided by 12 months.” Judgments must be paid or on a repayment plan. (Ch. 4, Topic 7b)	“Do you require collections to be paid off, or do you follow VA guidance?”
Reserves	“Significant liquid assets” is a compensating factor (Ch. 4, Topic 10d).	“Do you require reserves at this score, and how many months?”
Ch. 7 seasoning	“If the bankruptcy was discharged more than 2 years ago.it may be disregarded.” 1 to 2 years possible with re-established credit and cause beyond borrower’s control. Less than 12 months: “generally not be possible to determine that the borrower(s) is a satisfactory credit risk.” (Ch. 4, Topic 7b)	“What is your waiting period after Chapter 7 discharge?”
Ch. 13	“If the borrowers) has satisfactorily made at least 12 months’ worth of the payments and the Trustee or the Bankruptcy Judge approves of the new credit, the lender may give favorable consideration.” (Ch. 4, Topic 7b)	“Do you lend to borrowers currently in a Chapter 13 plan?”
Foreclosure seasoning	“You may disregard a foreclosure finalized more than 2 years from the date of closing.” 1 to 2 years possible with re-established credit and cause beyond control. (Ch. 4, Topic 7b)	“What is your waiting period after foreclosure?”
Short sale / deed-in-lieu	“If the borrower’s payment history on the property was not affected before the short sale or deed in lieu and was voluntarily communicating with the servicer or holder, then a waiting period from the date transfer of the property may not be necessary.” (Ch. 4, Topic 7b)	“What is your waiting period after a short sale?”
Number of tradelines	“Absence of a credit history is not generally considered an adverse factor.” Nontraditional credit may be used. No minimum number of tradelines. (Ch. 4, Topic 7b)	“Do you require a minimum number of tradelines, or do you accept nontraditional credit?”
Employment history	“Verify a minimum of 2 years of employment. Generally, in the borrower’s current position, 2 years of employment is a positive indicator.” “Two years of employment with the same employer is not required.” Less than 12 months “not generally considered stable and reliable” but exceptions apply. (Ch. 4, Topic 2e)	“How do you document income for borrowers with less than 2 years in their current role?”

Every VA cell sourced from VA Pamphlet 26-7, Chapter 4 (KnowVA, fetched Sep 29, 2026). Quoted text is verbatim from the fetched source.

How Your Mortgage Credit Score Is Calculated

VA lenders pull mortgage-specific FICO scores from all three bureaus and use the middle score. These are not the same scores shown by free consumer apps.

FICO states: the mortgage-specific models are “FICO Score 5 (Equifax), FICO Score 4 (TransUnion), or FICO Score 2 (Experian).” These are older scoring models that weigh credit factors differently than the VantageScore 3.0 used by apps like Credit Karma. There is no fixed conversion between consumer app scores and mortgage FICO scores. The difference varies by file.

Table 4. FICO Score Components and What Moves Them
Factor	Weight	What Drives It	Fastest Fix
Payment history	35%	On-time payments, late payments, collections, bankruptcies	Stop all new lates immediately.
Amounts owed (utilization)	30%	Credit card balances vs. limits, installment loan balances	Pay revolving balances below 30% of limits (below 10% for maximum boost).
Length of credit history	15%	Age of oldest account, average age of all accounts	Do not close old accounts before applying. It shortens average age.
Credit mix	10%	Variety of account types (revolving, installment, mortgage)	Not worth opening new accounts just for mix. The inquiry offsets the benefit.
New credit	10%	Recent inquiries, newly opened accounts	Stop applying for new credit 3 to 6 months before the VA loan application.

Source: FICO (myfico.com/credit-education). Weights are approximate and consistent across FICO models.

Joint Application and Spouse Credit

On a joint VA loan application, the lender typically uses the lower middle score of both parties for qualification and pricing. FICO states: “if it is a joint application, then they will use the lower middle score of both parties.”

If one borrower has a middle score of 680 and the other has a middle score of 600, the lender typically uses 600 for the file. When the lower-scoring party pulls the representative score below the lender’s overlay, options include applying without the lower-scoring party on the note (the party’s debts may still count in DTI in community property states) or working on the lower score before applying.

A co-borrower helps more by adding income to reduce DTI and increase residual income than by contributing a higher score.

Do Collections Have to Be Paid Before a VA Loan

Not necessarily. The VA does not require charge-offs and collections to be paid off. Judgments, federal debts, and liens must be paid in full or have a written repayment agreement.

Table 5. VA Collections and Derogatory Credit Matrix
Type	VA Rule	Effect on Qualification
Medical collection or charge-off	Can be disregarded. Not required to be paid off. Explanations are not required.	Does not count against the file unless reduced to a judgment or lien.
Nonmedical collection	Not required to be paid off. Must be considered in the overall credit analysis. Chapter 4 states: accounts without established payment arrangements use a calculated monthly payment of 5% of the outstanding balance divided by 12 months.	When no payment arrangement exists, the calculated payment counts in DTI and residual income. Lender overlays vary.
Charge-off	Not required to be paid off.	Treated similarly to collections in VA underwriting. Lender overlays may differ.
Judgment	Must be paid in full or on a verified repayment plan.	Blocks closing until resolved.
Federal debt or tax lien	Must be paid in full or on a verified repayment plan.	Triggers CAIVRS flag. Must be cleared before any VA lender can fund.
Active repayment plan	Acceptable for collections, judgments, and federal debts when documented.	The monthly payment counts in DTI.

VA rules from VA Loan Guaranty Conference 2023 (benefits.va.gov). Medical collection slide verbatim: “Identifiable Medical Collections or Charge-offs can be disregarded. Not required to be paid off. Explanations are not required. This flexibility does not apply to items reduced to a lien or judgement.”

If a lender says all collections must be paid before closing, that is the lender’s overlay, not a VA rule. A second lender may not impose the same requirement. Ask: “Are you requiring this payoff under VA guidelines or under your own overlay?”

Getting a VA Loan With No Credit Score or Thin Credit

The VA does not consider the absence of established credit a negative factor. The VA Loan Guaranty Conference 2023 states: “Lack of credit is not viewed as a negative” and “Non-traditional tradelines or scoring models may be used.”

VA guidance specifies no minimum number of tradelines. For borrowers without a scoreable credit file, nontraditional credit may be used to document creditworthiness. Documents to gather:

Cancelled checks or bank statements showing on-time rent payments
Utility payment records (electric, gas, water, phone)
Insurance payment records (auto, renter’s)
Any other recurring monthly obligation with a verifiable payment history

Lender overlays are the practical barrier. Borrowers with thin or no credit files should specifically ask lenders: “Do you accept nontraditional credit for VA loan qualification?”

Purchase vs. IRRRL vs. Cash-Out Credit Requirements

Credit requirements differ by loan type because the risk profile differs.

Table 6. VA Credit Rule and Funding Fee by Loan Type
Loan Type	VA Credit Rule	Funding Fee (First Use)
Purchase	No VA minimum. (Ch. 4, Topic 7b)	2.15% with no down payment. (VA.gov, fee-math.js)
IRRRL (streamline refinance)	No VA minimum. “Generally, no appraisal, credit information or underwriting is required on an IRRRL.” (Ch. 6, Topic 1a)	0.50%. (VA.gov, fee-math.js)
Cash-out refinance	No VA minimum. (Ch. 4, Topic 7b)	2.15%. (VA.gov, fee-math.js)

Funding fees from VA.gov, effective April 7, 2023, verified in fee-math.js (first use, zero down = 2.15%).

Payment History and Re-Established Credit

Chapter 4, Topic 7b states that the “borrower’s past repayment practices on obligations is the best indicator” of willingness to repay. “Emphasis should be on the borrower’s overall payment patterns rather than isolated occurrences of unsatisfactory repayment.” In circumstances not involving bankruptcy, “satisfactory credit is generally considered to be re-established after the borrower(s), have made satisfactory payments for 12 months after the date the last derogatory credit item was satisfied.”

VA Loan Credit Requirements Compared to FHA and Conventional

The VA loan is structurally more flexible on credit than any other major loan program. No program-level minimum score, no down payment, and no monthly mortgage insurance at any credit level.

Table 7. Minimum Score, Bankruptcy, and Foreclosure by Loan Program
Requirement	VA Loan	FHA Loan	Conventional Loan
Program-level minimum credit score	None. “VA does not have a minimum credit score requirement.” (Ch. 4, Topic 7b)	MDCS below 500: not eligible. MDCS 500 to 579: max LTV 90%. MDCS 580+: max financing. (HUD 4000.1 II.A.4.d.iii(A)(3))	“A minimum credit score is not required for DU loan casefiles.” Manual UW: 620 fixed-rate, 640 ARM. (Fannie Mae B3-5.1-01, Apr 2026)
Bankruptcy waiting period (Ch. 7)	2+ years; 1 to 2 years with re-established credit and cause beyond control; less than 12 months generally not possible. (Ch. 4, Topic 7b)	2 years; 12 months with extenuating circumstances. (HUD FHA Resource Center, answers.hud.gov)	4 years; 2 years with extenuating circumstances. (Fannie Mae B3-5.3-07)
Foreclosure waiting period	2+ years; 1 to 2 years with re-established credit and cause beyond control. Short sale / deed-in-lieu: waiting period may not be necessary if payments were current. (Ch. 4, Topic 7b)	3 years. Short sale: 3 years (no wait if current at time of sale). (HUD 4000.1 II.A.5.a.iii(I)(2), (J)(2))	7 years; 3 years with extenuating circumstances. Deed-in-lieu / short sale: 4 years; 2 years with extenuating circumstances. (Fannie Mae B3-5.3-07)

VA: Chapter 4 (KnowVA, fetched Sep 29, 2026). FHA: HUD 4000.1 (pdftotext, fetched Sep 29, 2026) and HUD FHA Resource Center (answers.hud.gov, fetched Sep 29, 2026). Conventional: Fannie Mae Selling Guide B3-5.1-01 and B3-5.3-07 (fetched Sep 29, 2026).

Table 8. VA vs. FHA: Upfront Charges and Annual Mortgage Insurance
Charge	VA Loan	FHA Loan
Upfront program charge	Funding fee: 2.15% first use, zero down (one-time). (VA.gov, fee-math.js)	“175 Basis Points (bps) (1.75%) of the Base Loan Amount.” (HUD ML 2023-05)
Annual mortgage insurance	None. No monthly mortgage insurance at any score or LTV. (VA.gov)	LTV at or below 90%: 50 bps, 11 years. LTV above 90% to 95%: 50 bps, mortgage term. LTV above 95%: 55 bps, mortgage term. Base loan at or below conforming limit, term above 15 years. (HUD ML 2023-05)

VA funding fee: VA.gov, effective April 7, 2023, verified in fee-math.js. FHA MIP: HUD Mortgagee Letter 2023-05 (pdftotext, fetched Sep 29, 2026).

VA.gov states: “we guarantee to your lender that we’ll pay up to 25% of the loan amount.” Veterans with full entitlement have no VA loan limit, per VA.gov: “You don’t have a loan limit (as long as you can afford the loan amount and the property appraisal supports the purchase price of the home).”

Bankruptcy, Foreclosure, and Major Credit Events

A past bankruptcy or foreclosure does not permanently block a VA loan. VA guidance allows re-entry after seasoning periods.

Chapter 7 Bankruptcy

The VA Loan Guaranty Conference 2023 states the standard is a “two year waiting period.” A “one year waiting period” is possible “with documented re-establishment of acceptable credit and any foreclosure was outside of the borrower(s) control.”

Chapter 13 Bankruptcy

Favorable consideration is possible after “one year of making payments as agreed” with borrower having “permission from trustee.” Once the payment plan is concluded, “credit is deemed re-established.”

Foreclosure

Foreclosure follows the same timeline as Chapter 7: “two year waiting period” standard, “one year waiting period with documented re-establishment of acceptable credit” when the event was outside the borrower’s control. When a property is included in a Chapter 7 bankruptcy, “the later of the discharge or foreclosure sale date establishes the waiting period.”

Short Sale and Deed-in-Lieu

“No waiting period.” However, “any late payments made on the mortgage should be included in the credit review.” This is a meaningful difference from foreclosure. A borrower who completed a short sale while staying current on the mortgage is in a fundamentally different position than one who went through foreclosure.

Chapter 4, Topic 7b states: “satisfactory credit is generally considered to be re-established after the borrower(s), have made satisfactory payments for 12 months after the date the last derogatory credit item was satisfied.”

Can a Veteran Get a VA Loan at Each Score Level

Can a Veteran Get a VA Loan With a 500 Credit Score?

The VA sets no minimum credit score. No lender verified for this page publishes a VA floor at 500. Whether a file at 500 moves forward depends on the lender’s overlay and the AUS risk classification, which evaluates the full file.

Can a Veteran Get a VA Loan With a 550 Credit Score?

The VA sets no minimum credit score. Freedom Mortgage publishes a 550 floor for VA loans. At this score, the AUS risk classification and the lender’s overlay determine the path.

Can a Veteran Get a VA Loan With a 580 Credit Score?

The VA sets no minimum credit score. Freedom Mortgage publishes a 550 floor; At 580, the path depends on the lender’s overlay, the AUS risk classification, and how the rest of the financial profile supports the application. Chapter 4 states that AUS systems “do not approve or disapprove loans” but “merely determine a risk classification.”

Can a Veteran Get a VA Loan With a 600 Credit Score?

The VA sets no minimum credit score. At 600, a borrower is above the 550 floor published by Freedom Mortgage and below the 620 floor published by. The AUS risk classification and the lender’s overlay determine the path.

Can a Veteran Get a VA Loan With a 620 Credit Score?

The VA sets no minimum credit score. Lender floors typically range from 580 to 640. At this score, the AUS risk classification depends on the full file.

Can a Veteran Get a VA Loan With a 640 Credit Score?

The VA sets no minimum credit score. 640 is above both verified lender floors (550 and 620). At this score, the AUS risk classification depends on the full file.

Underwriting Examples

These examples are hypothetical and do not represent promised outcomes. Each shows inputs measured against the VA Chapter 4 guidelines; no outcome is stated because the AUS risk classification and the lender’s policy determine the result.

Example 1: 585, South Region, Chapter 7 Discharged 30 Months Ago

Inputs (hypothetical): 585 middle score, Texas, family size 3, $300,000 loan, $6,800 gross monthly income, $1,700 monthly taxes withheld, $480 monthly debts, $2,150 proposed PITI, 1,500 square feet. Maintenance and utilities: $210 ($0.14 per square foot, Ch. 4, Table 8, Item 19). Chapter 7 discharged 30 months ago. DTI: 38.7%, below the 41% benchmark (Ch. 4, Topic 10b). Estimated residual income: $2,260, against a South-region family-of-3 guideline of $889 (Ch. 4, Table 10). The Chapter 7 exceeds the 24-month waiting period (Ch. 4, Topic 7b). Freedom Mortgage publishes a floor at or below this score (550).

Example 2: 615, Midwest Region, DTI Above 41%

Inputs (hypothetical): 615 middle score, Ohio, family size 4, $250,000 loan, $4,200 gross monthly income, $800 monthly taxes withheld, $900 monthly debts, $1,450 proposed PITI, 1,200 square feet. Maintenance and utilities: $168. No credit events. DTI: 56%, above the 41% benchmark; Chapter 4, Topic 10b states this “requires close scrutiny” unless “residual income exceeds the guideline by at least 20 percent.” Estimated residual income: $882, against a Midwest-region family-of-4 guideline of $1,003 (Ch. 4, Table 10). The 120% threshold is $1,204. Residual income is below the guideline. Freedom Mortgage publishes a floor at or below this score (550).

Example 3: 660, West Region, DTI Above 41%

Inputs (hypothetical): 660 middle score, California, family size 2, $450,000 loan, $7,500 gross monthly income, $1,875 monthly taxes withheld, $1,200 monthly debts, $2,800 proposed PITI, 2,000 square feet. Maintenance and utilities: $280. No credit events. DTI: 53.3%, above the 41% benchmark. Estimated residual income: $1,345, against a West-region family-of-2 guideline of $823 (Ch. 4, Table 10). The 120% threshold is $988; residual income exceeds it. Both Freedom Mortgage (550) and most lenders (typically 580–640) publish floors at or below this score.

Know where you stand before applying. Then compare VA loan offers from lenders whose overlays fit the score band and whose AUS risk classification supports the file.

Frequently Asked Questions

Does the VA set a minimum credit score for VA loans?

No. The VA Loan Guaranty Conference 2023 states: “No minimum credit score required.” Every minimum score requirement comes from the lender’s own internal risk criteria, known as overlays.

Is 41% DTI a hard limit for VA loans?

No. The 41% DTI benchmark is used in VA underwriting as a guideline, not a firm cutoff. Files above 41% can still receive AUS approval if other factors are strong, particularly residual income.

How is the mortgage credit score different from a free consumer score?

Mortgage lenders use FICO Score 5 (Equifax), FICO Score 4 (TransUnion), and FICO Score 2 (Experian). Consumer apps like Credit Karma use VantageScore 3.0. There is no fixed conversion between the two. The gap varies by file.

Can a Veteran get a VA loan with no credit score?

The VA does not consider the absence of established credit a negative factor. Borrowers without a scoreable credit file may qualify using nontraditional credit, including verified payment history on rent, utilities, insurance, or other recurring payments. VA guidance specifies no minimum number of tradelines. Lender overlays are the practical barrier.

Can a Veteran get a VA loan while in a Chapter 13 repayment plan?

The VA allows favorable consideration after 12 or more months of satisfactory plan payments with trustee approval (Ch. 4, Topic 7b).

Does a lower credit score raise the VA funding fee?

No. The VA funding fee is determined by loan type, down payment amount, and whether it is first or subsequent use of the VA loan benefit. Credit score is not a factor. The current fee for a first-use purchase with no down payment is 2.15% of the loan amount.

Does rate-shopping with multiple VA lenders hurt a credit score?

Minimally. FICO states that older models allow a “14-day span for rate shopping” and newer models “expands to 45-days.” Multiple mortgage credit inquiries within this window are counted as a single inquiry for scoring purposes.

How does the VA define re-established credit after a derogatory event?

Does Fannie Mae still require a 620 minimum for conventional loans?

As of November 16, 2025, Fannie Mae removed the 620 minimum credit score requirement for loans submitted to Desktop Underwriter (DU). For manually underwritten conventional loans, the 620 minimum still applies. Fannie Mae also now permits VantageScore 4.0 for DU loans.

What is the difference between a short sale waiting period and a foreclosure waiting period for VA loans?

The VA Loan Guaranty Conference 2023 states short sales and deeds-in-lieu have “no waiting period,” while foreclosures require a “two year waiting period” (or one year with re-established credit and cause beyond borrower’s control). Any late payments made on the mortgage before the short sale are still included in the credit review.

How We Researched This Page

This page was reviewed against VA program sources and lender websites. Sources reviewed: VA Pamphlet 26-7, Chapter 4: Credit Underwriting (KnowVA, fetched September 29, 2026), VA Loan Guaranty Conference 2023 Credit Underwriting presentation (benefits.va.gov, PDF), VA.gov funding fee and closing costs page, VA.gov loan limits and entitlement page, FICO score versions page (myfico.com), HUD answers.hud.gov FHA bankruptcy FAQ, Fannie Mae Selling Guide B3-5.1-01 credit score requirements and B3-5.3-07 derogatory credit events, HUD Mortgagee Letter 2023-05, and each lender’s own published website for credit score minimums. Lender requirements verified September 29, 2026.

Resources Used

Updated on September 29, 2026.

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