VA Minimum Credit Score Guidelines On VA Home Loans


This BLOG On VA Minimum Credit Score Guidelines On VA Home Loans Was PUBLISHED On March 28th, 2019

Many borrowers often get very confused when it comes to the Minimum Credit Score Requirements on VA loans.

  • They go to their local bank are often told that the VA Minimum Credit Score Requirement is 640 FICO
  • Then they may call Quicken Loans, Veterans United, New Day USA, or other companies that heavily advertise on television and cable networks and are told they need that VA Minimum Credit Score Guidelines are 620 to 640 FICO
  • Why is there such a gap in Minimum Credit Score Requirements?
  • The answer is simple
  • The Department of Veterans Affairs (The VA), does not have any VA Minimum Credit Score Requirements
  • Borrowers can qualify for VA Home Loans with 500 credit scores as long as borrowers can get an approve/eligible per automated underwriting system (AUS)

In this blog, we will clarify why credit score requirements vary from lender to lender on VA loans.

VA Agency Mortgage Guidelines Versus Lender Overlays

Over 75% of our borrowers are folks who could not qualify at other lenders due to VA Overlays.

  • Lender overlays are mortgage requirements that are imposed by individual lenders that is above and beyond VA Agency Guidelines
  • All lenders will mandate their borrowers to meet VA Agency Guidelines
  • However, lenders can impose higher standards that are above and beyond mortgage guidelines set forth by the U.S. Department of Veterans Affairs
  • These additional guidelines by lenders are called Lender Overlays
  • Gustan Cho Associates is a national direct lender with no overlays on VA Loans
  • We do not have any additional overlays besides the minimum VA Agency Guidelines

As long as borrowers can get an automated underwriting system (AUS) approval, our borrowers are secured in getting an approval and closing their VA Loans on time.

Choosing A Lender With No VA Minimum Credit Score Requirements

Most lenders have overlays on VA Loans. Under VA Mortgage Lending Guidelines, the Department of Veterans Affairs (The VA) does not have any minimum credit score requirements and/or debt to income ratio cap.

  • Then why is it that most lenders have minimum credit score requirements?
  • This is due to that particular lender’s overlays
  • When a lender is requiring a 620 to 640 credit score, this requirement is not by the VA
  • The credit score requirements is by the particular lender
  • Gustan Cho Associates has no overlays on VA Loans
  • As long as borrowers can get an approve/eligible per AUS and borrowers can provide all conditions of the AUS, they can rest assured they will close on their mortgage

Gustan Cho Associates has closed countless of VA Mortgages with credit scores in the 500’s and DTI north of 60% DTI.

Automated Underwriting System

VA does not have a minimum credit score requirement or DTI cap on VA Loans. However, borrowers will need to get an approve/eligible per automated underwriting system. If borrowers have been timely with all of their payments in the past 12 months and descent payment history, they should not have any issues with getting an automated approval. If the automated findings render a refer/eligible, the file can be manually underwritten. Borrowers who need to qualify for VA Loans with a direct lender with no overlays on government and/or conforming loans, can contact us at 383-726-8252 or text us for faster response. Or email us at We are available 7 days a week, evenings, weekends, and holidays.

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