Can I Qualify For VA Loan With Under 620 Credit Score?

This BLOG On Can I Qualify For VA Loan With Under 620 Credit Score Was Written By Gustan Cho

VA Loans is a government loan program administered by the United States Department of Veteran Affairs. VA Loans is the best mortgage loan program available in the United States. Here are the characteristics of a VA Loan:

  • No money down on a home purchase. 100% financing
  • 4% sellers concessions allow by home seller to home buyer where the home buyer does not need any closing costs
  • With no down payment required and closing costs being covered either by sellers concession and/or lender credit, the home buyer with a VA Loan can close on their home with zero money out of pocket
  • No annual mortgage insurance premium
  • VA Home Loans have one of the lowest mortgage rates out of any loan program
  • VA Loans are only available to Veterans of the United State Armed Services with a Certificate Of Eligibility
  • Veteran home buyers can qualify for a VA Loan 2 years after a Chapter 7 Bankruptcy Discharged Date
  • Veterans can qualify for a VA Loan 2 years after a short sale
  • Buyers can qualify for a VA Loan 2 years after the recorded date of a foreclosure
  • VA Mortgage Borrowers can qualify for a VA Loan 2 years after the recorded date of a deed in lieu of foreclosure
  • Deferred students loans that has been deferred more than 12 months are exempt from debt to income ratio calculations
  • Only legally married spouses can be co-borrowers not like FHA where family members related to blood, law, and/or marriage can be non-occupant co-borrowers. VA does not allow for non-occupant co-borrowers
  • One to four unit residential properties are eligible for VA Loans
  • VA allows up to 100% Loan To Value on VA cash out refinances

100% Financing On VA Home Loans

Again, VA Loans do not require any down payment and closing costs can be covered either by a lender credit or sellers concession. But VA Loans are not for everybody.

  • VA Loans are only eligible for Veterans with COE, Certificate of Eligibility.
  • One of the greatest benefits for serving in the United States Armed Forces is the potential benefit for the Veteran to get the Certificate of Eligibility to qualify for a VA Loan.

What Are The Requirements For A VA Loan?

VA Loans are like any other government loan program except that the borrower needs to be a Veteran of the United States Armed Services with a Certificate Of Eligibility Certificate from the VA. Here are other basic requirements to qualify for a VA Loan:

  • VA Purchase Home Loans are only for owner occupant properties only
  • Only Veterans with a Certificate Of Eligibility can qualify for a VA Loan
  • Income is required and proper debt to income ratios needs to be met in order to get an approve/eligible per Automated Underwriting System
  • VA does not have a minimum credit score requirements
  • VA credit score requirements is set by the individual VA mortgage lenders
  • Most mortgage lenders will have minimum credit score requirements of at least 620 FICO for a VA Loan
  • Others will have overlays on credit scores on VA Loans set at a 640 FICO Credit Score
  • $0 down payment and no mortgage insurance premium required
  • Many Veterans can qualify for VA Loan With Under 620 Credit Scores but stipulations arise which we will discuss in the following paragraphs
  • The Gustan Cho Team at USA Mortgage has no minimum credit score requirements

Qualifying For VA Loan With Under 620 Credit Scores

Most VA Lenders will require a minimum credit score of 620 FICO.

  • However, there are mortgage lenders that will approve VA Loan With Under 620 Credit Scores.
  • Normally lenders who qualify VA Loan with under 620 Credit want the credit scores not to go under FICO.
  • One thing borrowers need to know is that the Department of Veteran Affairs, or VA, does not mandate a minimum FICO Credit Score and whatever the minimum credit score requirements by a VA Lender is not the VA requirement but the VA mortgage lender’s requirement.
  • So if a VA mortgage lender requires a credit score of 580 FICO, 620 FICO, or 640 FICO Credit Score, this credit score requirement is not the VA Guidelines on credit scores BUT it is the credit score requirement by the VA.
  • Bottom line, most VA mortgage lenders have lender overlays on VA Loans.

Veteran home buyers who are looking for a direct VA Lender that will approve VA Loan with under 620 Credit, contact Gustan Cho at 262-716-8151 or email us at

The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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