Can You Get a VA Loan With Bad Credit?

Life comes at you fast. Racking up unexpected medical expenses, suddenly losing your job, experiencing adverse economic conditions — all kinds of unforeseen circumstances can lead to blemishes on your credit report. However, if you’re active duty military or a veteran who qualifies for VA loans, you have a really important benefit you should know about.

With a low credit VA loan, you can still qualify for a mortgage, get funded, and secure a competitive rate. VA loans for those with bad credit allow borrowers who have faced financial adversity to finance a home.

With a VA loan, you can technically qualify with a credit score as low as 500 — however, most lenders will want a minimum credit score of 550. This is low when compared with conventional loans, which typically require a minimum credit score of at least 620.

Getting a VA loan with bad credit doesn’t mean you have to sacrifice the beneficial rates and terms that are associated with the VA lending program. You can still qualify for home financing with little to no down payment and secure a relatively low rate.

Additionally, if you improve your financial situation and build your credit after taking out a purchase loan, you can apply for a VA Interest Rate Reduction Refinance Loan (IRRRL) later on down the line. With a VA IRRRL, you can capitalize on your improved credit and lower your rate even further.

In this video, Bill Lyons, the CEO and President of Griffin Funding, explains what bad credit VA home loans are and how qualifying borrowers can use this benefit to achieve their homeownership goals.

Interested in getting a VA home loan with bad credit? Griffin Funding specializes in VA loans. We’ve funded VA loans all across the country and helped many veterans get into the home of their dreams. Visit our website to learn more about the VA loans we offer and reach out to discuss your financing options with one of our mortgage professionals!

Thank you for your service.

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