While the Veterans’ Administration does not set a minimum credit score standard for VA Home Loans, the mortgage industry certainly does. In the wake of the mortgage meltdown, many of the secondary market mortgage investors (companies that buy and sell bundles of mortgages -Mortgage Backed Securities- on Wallstreet) have tightened credit criteria.

The minimum credit standard for lending on VA Home Mortgages has been increased and is set at a minimum credit score of 620 for most Lenders. Credit Rescoring products are available to permanently increase credit scores. Ask me, your Mortgage Loan Originator, for more information by posting a comment on this blog.

Other criteria than just credit score are also considered in underwriting. A minimum of no more than 1 late on any credit, revolving debt and installment debt, including mortgages, is allowable according to most guidelines.

There are still programs for Veterans that have no credit files thus no credit score. These “no credit score” programs may be an option for you if you can prove you have “other” credit accounts such as current rental history, utility accounts, insurance, cell phone.