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What Is Score is Required for VA Home Loan?

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Like with any other kind of credit, the VA Loan applicants should meet certain income and credit requirements. Though there are no minimum credit requirements on the part of the VA Department, the loan providers demand the score of 620. Having such rating you are likely to get the financing for your new home, but your income and debt to income ratio also matter.

The Department of Veteran Affairs requires 41% benchmark for DTI ratio. However, certain lenders may allow a higher DTI. In this case the borrowers risk that their monthly expenditures exceed their income.

As for earnings, the VA has a special standard of the so-called residual income, the amount of means remaining after all the monthly expenses due. The borrower should have enough money to meet this benchmark to be approved for the VA loan.

Check also: What Are VA Home Loan Qualification Procedures to make sure you are eligible for the VA home loan.