August 30th, 2018 6:02 AM by Jackie A. Graves
The Department of Veterans Affairs doesn’t set a minimum
credit score for VA home loans, but lenders do. Higher scores may yield better
rates and terms.
home loans are a benefit of military service, making homeownership possible for
many service members and their spouses. If you’re wondering whether your credit
score meets VA loan requirements, here’s what you need to know.
You read that
right: The U.S. Department of Veterans Affairs, which insures all VA home
loans, doesn’t require a certain credit score. But the private lenders that
issue VA loans may have their own minimum credit score requirements, typically
ranging from 580 to 620.
Although a low
credit score won’t necessarily prevent you from getting a VA loan, a higher
score may mean better interest rates or loan terms.
A higher credit score may
mean better interest rates or loan terms.
lender determines the percentage they are willing to offer individual
borrowers,” Curt Cashour, VA press secretary, said by email. “Generally
speaking, lenders are able to give their best rate to borrowers with excellent
your ability to repay a VA loan, lenders consider a variety of financial
factors, including employment record and current income. You also will have to
meet requirements such as length of service, duty status and character of
Shopping VA mortgage
lenders is essential
home loan requirements, including minimum credit score requirements, vary by
lender. That’s why it’s so important to compare quotes from at least three VA
lenders before choosing one for your mortgage. Besides rates, be sure to
evaluate customer service ratings, closing costs and the company’s level of
experience with VA loans.
should make sure that they shop around for multiple lenders when using their
home loan benefit to ensure that they acquire the best rates and terms
available,” Cashour said.
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