Skip to Main Content

Your credit history does not necessarily disqualify you from using your VA perk – you can still get a VA loan with “bad credit.” The VA lending program has no minimum credit requirement, enabling veterans and active-duty service members to get access to housing that may not have been accessible to them otherwise. The Federal Savings Bank offers specific credit benchmarks to help you choose the right VA loan before you apply.

How do you qualify for a VA loan with a low credit score?

If you’re applying for VA loans with a low FICO score, you will need to accredit your service. Your loan officer can assist you with this step. Persons who may qualify for VA loans include:

1. Eligible military service members
2. Reservists
3. National Guard members
4. Veterans
5. The surviving spouses of any of the above

The loan office will verify your VA loan eligibility and will pull your credit. One of our VA specialists will then explain and help you choose a VA loan program that’s right for you. We will look at your credit score, but also consider other factors such as your income and existing debt.

The advantages of VA loans

VA mortgages are specially designed to help meet the needs of armed service members and veterans. Many VA mortgages have no down payment requirement, no paid mortgage insurance, and no minimum credit score. Active-duty personnel may even choose to use a VA loan to purchase a home for their dependents.

If you’re new to homebuying, First-Time Homebuyer Programs are excellent options for VA loans with bad credit. The Federal Savings Bank offers specialized options for your financial situation by maintaining competitive credit score flexibility for those seeking a VA mortgage. We also offer Conforming, Jumbo, ARM, FHA, and Retirement loans, so you can get the loan that’s right for your needs.

Should you choose to apply for a VA loan, we are ready to help you get through the approval process – no matter the state of your credit. Our team can help you check your eligibility and learn more about the mortgage perks you have as a veteran of the Armed Forces. Visit our VA loans page for more information or reach us at 877-788-3520 for assistance in evaluating your options for a VA mortgage with a low credit score.

Subject to credit approval. Terms and conditions may apply. Property insurance is required for all loans secured by property.

This information is intended for educational purposes only. Products and interest rates subject to change without notice. Loan products are subject to credit approval and include terms and conditions, fees and other costs. Terms and conditions may apply. Property insurance is required on all loans secured by property. VA loan products are subject to VA eligibility requirements. Adjustable Rate Mortgage (ARM) interest rates and monthly payment are subject to adjustment. Upon submission of a full application, a mortgage banker will review and provide you with the terms, conditions, disclosures, and additional details on the interest rates that apply to you individual situation.