First things first: the VA Loan itself does not have any credit score requirements. If you’ve been told by a bank or lender that your credit score is too low to qualify for a VA Home Loan, it’s essential to know that this is not a requirement from the VA. Instead, it’s a lender overlay.
Do Lender Overlays Affect VA Loan Credit Score Requirements?
A lender overlay occurs when a lender or a bank imposes their own rules above government guidelines. They do this to protect themselves, as they can’t just lend substantial amounts of money to individuals with poor financial management. Unfortunately, these overlays often result in misinformation, leading veterans to believe their credit scores are too low to use their VA Loan. Remember, there are no VA Loan Credit Score requirements in the VA guidelines! This misconception is why only 13% of veterans know how to properly use their VA Loan benefit.
Get The Real Story on VA Loan Credit Score Requirements
If you’ve been denied a VA Loan due to your credit score, we recommend seeking a second opinion from a VA Loan Specialist. VA Loan Specialists assist veterans, active-duty members, and those transitioning with their VA Home Loan financing needs. At VLG, our team of VA Specialists will help you, regardless of your credit score. We even offer a Night Vision Credit Repair program to get your credit on track for free.
How VLG Supports You
Our VA Home Loan Specialists will create a personalized plan of action (POA) for you and provide periodic check-ins to keep you on track. You can contact our team anytime with questions—we’re here to help you.
Why Choose VLG?
At VLG, we come from military families, with 60% of our staff being prior service members or spouses. We honor the VA Home Loan guidelines as they were written, and 90% of the loans we close are VA Home Loans.
Ready to take the next step? Reach out to us on our website and one of our friendly VA Home Loan Specialists will be in touch with you shortly.
