VA loans do not have an official minimum credit score. That statement is true, but it is also where most confusion starts. The VA sets the rules for the loan program, but individual lenders decide how much risk they are willing to take. The JD.Mortgage team at PRMG helps buyers understand the difference between VA guidelines and lender overlays so they know what is actually possible.

Does the VA really have no minimum credit score?

Yes. The Department of Veterans Affairs does not publish a minimum credit score requirement for VA loans. Approval is based on the borrower’s overall credit profile, not a single number.

This is why you may see “no minimum credit score” advertised. The guideline itself is real.

You can review the main VA loan rules here: Learn about VA loans.

Why are borrowers still getting denied?

This is where lender overlays come in.

A lender overlay is an extra rule a lender adds on top of VA guidelines. For example, the VA may allow approval with a weaker credit profile, but a lender may choose to require:

• A minimum credit score (even though VA does not)
• A longer on-time payment history
• Lower debt-to-income ratios than VA requires

When a borrower hears “you don’t qualify,” it is often because of a lender’s internal policy, not a VA rule.

What the VA actually looks at instead of a score

VA underwriting focuses on the full picture. Key factors include:

• Payment history (especially the most recent 12 months)
• Residual income after monthly obligations
• Stability of income and employment
• Explanation and recovery from past credit events

This is why two borrowers with the same credit score can have very different outcomes.

If residual income is unfamiliar, this page explains it simply: See residual income basics.

Automatic approval vs manual underwriting

Most VA loans are approved through an automated underwriting system. When credit is weaker or limited, the loan may need to be manually underwritten.

Manual underwriting allows a lender to look deeper at the borrower’s story, but it requires:

• Stronger documentation
• Clear explanations for past issues
• Patience and accuracy

Many lenders do not offer VA manual underwriting at all. That is why borrowers are often told “no” very quickly.

If you want to understand how this works after major credit events, this page helps: VA loans after foreclosure or short sale.

Common myths about VA loans and credit scores

“I need at least a 620 for a VA loan.”

That is a lender rule, not a VA rule.

“Bad credit means I should wait years.”

Not always. Timeline depends on the type of credit issue and what has happened since.

“No credit is worse than bad credit.”

No credit can still be workable, but it usually requires alternative tradelines and manual underwriting.

Why timing matters with low credit VA loans

Small changes can make a big difference. Paying down balances, adding alternative tradelines, or simply allowing time to pass after a late payment can change the outcome.

This is why strategy matters more than slogans.

How the JD.Mortgage team approaches VA loans with low or no credit scores

We do not start with the score. We start with the full profile.

1. We review the complete credit history, not just the number.
2. We identify whether an automated or manual approval makes sense.
3. We map out next steps if timing or documentation needs improvement.

Other helpful pages if you are comparing options:

• VA loan basics
• Explore loan options
• Estimate your payment

FAQs

Can I get a VA loan with a credit score under 600?

Possibly. VA guidelines do not set a minimum score, but lender overlays and the overall credit profile determine approval.

What if I was denied by another lender?

A denial often reflects that lender’s rules, not VA eligibility. A second review can lead to a different outcome.

Do VA loans allow manual underwriting?

Yes, but not all lenders offer it. Manual underwriting follows stricter documentation rules.

Is no credit worse than bad credit for VA loans?

No credit can still work, but it often requires alternative tradelines and more documentation.

Can seller concessions help if my credit is weak?

Sometimes. Properly structured seller concessions can help with cash to close or payment strategy, but they must follow VA rules.

What This Means for You

A VA loan does not live or die by a single credit score. If you have been told “no,” the real question is whether it was a VA rule or a lender overlay. Understanding that difference can change your options.

Contact the JD.Mortgage team

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