If you are a first-time homebuyer or just a veteran who doesn’t have much money to contribute to the transaction, get your score up to at least 580. If you have a good work history, a low debt to income ratio, and plenty of residual income (per the VA calculation) we can often get VA home loan approvals for you.
It’s not guaranteed to work with a score that low. But if your score is lower than that, it becomes near impossible to get an approval. That is unless…..you have a home to sell or a stash of cash you should shoot for at least a credit score of at least 520.
The beauty of the VA program is it doesn’t require a down payment, or the addition of private mortgage insurance to your payment. However, when your score dips below 580, sometimes putting money down is the only way to trigger an approval.