Thanks to the program established by the United States Department of Veterans Affairs (VA), veterans, service members, and their surviving spouses can purchase homes with little to no down payment. These loans for veterans allow people who have served the United States to avoid getting a private mortgage and will have access to better and more competitive interest rates. 

If you’re a veteran or the surviving spouse of a veteran, it’s in your best interest to learn all you can about VA loans and how they work. To help you out with this, we’ve prepared a brief breakdown of VA loan credit rules. If this is something you want to learn more about, here’s everything you need to know about VA loans and credit rules:

VA Loans and Credit Scores

While veterans have access to this special loan, this doesn’t mean that they can forgo credit scores altogether. Even prior to the days of credit scores, VA lenders would review credit reports line by line to evaluate a veteran’s credit report. This is done so that they can gauge the risk when it comes to approving certain loans.

Credit scores are vital when applying for loans. And while the VA doesn’t set a minimum credit score requirement, the same can’t be said about VA home loan lenders. Now, you don’t have to worry about this too much as the minimum credit score is much lower than traditional loans. Most VA lenders will require you to have a minimum credit score of 640. But in some cases, this can even be lowered to 620, which makes securing a VA loan considerably easier!

Another thing you have to consider here is that approval will also be based on factors like the home loan size.  The larger the loan, the more strict lenders will be about the credit score requirements. If you are trying to secure a large loan, then it would be best, at the very least, to get your credit score up to 640.

VA Loans and Bankruptcies

While bankruptcies would normally make it extremely difficult to secure a loan, veterans don’t have this problem. This is because VA loans allow for bankruptcies as long as two years have passed since the discharge date and credit has been re-established. One caveat you have to take note of here is that VA lenders may not approve a loan if there is even one late payment made in the span of those two years.

You’ll also have to make sure that all your current payments on rent and utilities are made in a timely manner. This is because some VA lenders will use these payments as evidence for your ability to pay on time. However, there are cases where this will be used instead of a credit score. 


We hope this article has shed some light on the entire process of applying for and securing a VA loan. As you can see, these loans are quite advantageous and you should definitely consider applying for one if you qualify. If you have more specific questions about this, it would be best to speak directly with a VA loan lender.

Are you living in Hawaii or California and are looking for the best VA loan lenders? NetLending can help you get financing quicker! We believe each homebuyer deserves their dream home. Reach out to us today for more information about our services!