The VA loan is one of the most popular benefits for veterans, active-duty and reserve service members, and qualifying spouses in the United States. With attractive rates and the ability to buy a home or refinance all of your equity with no money down, its easy to see why. Still, there are certain requirements put in place by lenders.
If you’re looking to buy or refinance a house, you might want to know the minimum credit score requirement for a VA loan. That way, you can better prepare yourself for the application and approval process ahead.
Buying a home is an exciting milestone in life. However, the process of getting approved for a mortgage can be daunting, especially when it comes to your credit score. This is particularly true for VA loans offered by lenders like USAA. So what credit score is needed to qualify for a USAA VA loan? Let’s break it down.
VA loans are mortgage loans guaranteed by the Department of Veterans Affairs (VA) and offered by private lenders. They provide significant advantages for eligible borrowers, including:
- No down payment required
- No private mortgage insurance (PMI)
- Flexible credit standards
- Closing cost assistance
- Ability to refinance at lower rates
USAA is one of the top national lenders that offers VA loans They provide a range of financial products specifically for military members, veterans, and their families
There is no minimum credit score set by the VA, but lenders like USAA do have their own expectations. Your credit score is a big part of whether or not you can get a USAA VA loan.
The Importance of Your Credit Score
Your credit score tells lenders how reliably you have paid your debts in the past. The higher your score, the less risky you seem to be.
Key factors that influence your credit score include:
- Payment history – Have you made past credit payments on time? Late payments can lower your score.
- Credit utilization – What percentage of your available credit are you using? High utilization can hurt your score.
- Credit history length – In general, a longer credit history reflects better.
- New credit inquiries – Too many new credit applications in a short timeframe can lower your score.
The most commonly used credit scoring models range between 300 and 850. So where does your credit score need to be to qualify for a USAA VA loan?
USAA’s Minimum Credit Score Requirement
While the VA itself does not mandate a minimum score, USAA does have a credit policy for VA loans. According to USAA, the minimum credit score to qualify for a USAA VA purchase or refinance loan is 620.
This 620 minimum applies to applicants who wish to qualify based on their credit score alone. However, USAA notes that they will consider other compensating factors for borrowers with scores below 620.
Some examples of these are a sizable down payment, a lot of cash on hand, a low debt-to-income ratio, or a history of on-time payments.
So in reality, it is possible to get a USAA VA loan with a credit score under 620, but your chances improve significantly once you reach that threshold.
How USAA’s Minimum Score Compares to Other Top Lenders
USAA’s published minimum credit score requirement for VA loans is in line with several other top national lenders, including:
- Navy Federal Credit Union: 620 minimum
- Veterans United: 620 minimum
- DHI Mortgage: 620 minimum
However, some lenders do go lower. For example:
- Rocket Mortgage accepts VA applicants with credit scores as low as 580
- Caliber Home Loans has an advertised minimum VA credit score of 580
So while a 620 credit score is USAA’s published cutoff, other lenders may be an option if your score falls below that.
Still, it’s always a good idea to try to get the best credit score possible because that means better mortgage rates and terms.
What Is Considered a “Good” Credit Score?
Credit scoring models like FICO® categorize scores into different creditworthiness tiers. Here is how these tiers generally break down:
- Exceptional – Scores above 800
- Very Good – Scores between 740 – 799
- Good – Scores between 670 – 739
- Fair – Scores between 580 – 669
- Poor – Scores 579 and below
So while a credit score of 620 meets USAA’s minimum requirement, it falls into the “fair” credit tier. Raising your score into the “good” or above categories (670 and up) puts you in a better position for the lowest rates.
How Can I Check My Credit Score?
Since your credit score plays a key role in qualifying for a VA loan, it’s important to check your score well in advance of applying.
There are several ways to check your credit score for free, including:
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Order your free annual credit reports from www.annualcreditreport.com. These reports won’t include scores, but allow you to review your credit history.
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Check your FICO® Score for free on USAA’s website if you’re a member.
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Review credit cards or financial accounts that provide free scores. Many will show a VantageScore though, not your FICO®.
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Use free score estimation tools from Credit Karma or others. These also show VantageScores.
For the most accurate picture, purchase your FICO® Scores directly from www.myfico.com or USAA’s member site. Checking well in advance gives you time to improve your credit standing if needed.
Tips for Improving Your Credit Score
If your credit score falls below USAA’s minimum VA requirement or you simply want to qualify for better terms, here are some tips to improve it:
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Pay all bills on time. Payment history is the biggest factor in your score. Set up autopay if it helps.
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Lower credit utilization. Keep balances low and avoid maxing out cards.
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Don’t apply for new credit right before applying for a mortgage. New inquiries and accounts can lower scores temporarily.
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Correct any errors on credit reports by disputing them with the bureaus. Mistakes can unjustly hurt your score.
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Consider adding positive information, like becoming an authorized user on a spouse or partner’s old credit card account.
With diligence and patience, you can improve your credit score over time. This opens the door not just to a USAA VA loan, but better rates in the future.
Next Steps to Take
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Check your credit score and reports to understand where you stand currently. Annualcreditreport.com provides your free annual reports from Experian, Equifax, and Transunion. For free scores, try options from USAA or other financial accounts you have.
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Research different VA lenders and their credit policies if your score falls below USAA’s minimum requirement. Some may offer more flexibility.
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Make a plan to improve your credit. Paying bills on time, lowering utilization, and correcting errors can all help raise your score over months and years. Be patient as change takes time.
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Connect with USAA or another VA lender when you feel ready. They can pre-approve you and explain all the loans, rates, and terms you qualify for based on your credit score and profile.
While a 620 FICO® score meets USAA’s minimum for VA loans, aim higher if you can. The higher your credit score, the better your interest rate and overall loan terms will be. With diligence and smart financial habits, you can position yourself for VA loan success.
VA refer/eligible purchase or refinance
If, for some reason, the VA’s algorithm doesn’t approve you, you may still be able to get a loan under the “refer/eligible” route. These loans undergo the human scrutiny of manual underwriting. An underwriter will go through your documentation and see if you qualify.
Borrowers that don’t qualify for automated approval are usually those with certain negative items in their credit history. This could include late mortgage payments, past bankruptcies or foreclosure.
Rocket Mortgage needs a median FICO® Score of 640 or higher for people who want to be approved by hand. Your DTI can also be no higher than 45%. If you’re refinancing, you have to leave at least 10% equity in the home.
While the VA doesn’t set specific loan limits, lenders often have a certain point at which they consider the loan a higher risk. Most of the time, the limits on regular VA loans are set at the same level as the limits on regular loans in the area. If it’s outside a high-cost area, the current conventional loan limit is $806,500. Anything above that is a VA jumbo loan.
With full VA entitlement, if you have a qualifying credit score of 640 or higher, you can purchase with no down payment (or refinance up to the full amount of your home’s appraised value) for loan amounts of $1. 5 million or less. You can get a loan of up to $2 million with a 10% down payment or equity amount and a 680 median credit score.
See what you qualify for
The first thing you should do if your credit score isn’t quite high enough to qualify is learn what it is and what’s on your credit report. You can get a free credit report from any of the three credit bureaus once a week.
If you notice any errors or incorrect information on the report, you can file a dispute with the credit bureaus. If everything looks correct and your credit just needs some enhancement, you can follow these tips for improving your score:
- Always pay your bills on time. It’s never too late to start, even if you’ve been late in the past. Over time, improving your payment history will raise your score.
- Watch how much credit you use. It’s usually not a good idea to carry a balance on credit cards and other revolving lines of credit that’s more than 30% of the balance limit. You won’t have to deal with high credit card interest rates either if you pay off the balance every month.
- Don’t take out more credit than you need. Credit inquiries and new lines of credit may lower your score for a short time.
Even if you do qualify for a VA loan, it’s never a bad idea to work on raising your credit score. This can help you qualify for a better interest rate on the loan.
USAA VA Home Loan Review: Pros and Cons
FAQ
What credit score do you need for a USAA home loan?
To get a VA mortgage with this lender, you’ll need a credit score of at least 640. If you’re looking for a conforming mortgage, USAA has options that allow down payments as low as 3%. You’ll need at least a 620 credit score to qualify for a conforming mortgage with this lender.
Can I get a VA loan with a 600 credit score?
Yes, it’s possible to get a VA loan with a 600 credit score, but the VA doesn’t require a minimum credit score. Lenders, however, typically have their own requirements, and many prefer a score of 620 or higher.
What credit score do you need for a VA loan USAA?
The USAA minimum is 640, according to Russell. A lower score doesn’t eliminate you from the game, but your finances will face further scrutiny and, in all probability, you’ll get offered a higher interest rate on your VA loan.
What credit score do I need for a USAA loan?
USAA doesn’t say what the minimum credit score is, but their website says they look at people with scores below 640, so even bad credit may be accepted. May 16, 2025