VA Loans - Credit Reports and Scores
Please use the links below to find out more about credit reports and scores as they relate to VA Loans.
- Your website says that a VA Loan is not credit score-driven. What does that mean?
- Can you use the credit report I pulled off the internet?
- Does running my credit affect my score?
- What does a clean credit history mean?
- Was your question not answered?
Your website says that a VA Loan is not credit-score driven. What does that mean?
The VA does not base its approvals or denials on a credit score. Instead, the VA looks at the last 12 months of credit history and uses that to determine your qualification, whether your credit scores are high or low. For more information about credit scores or to get started on your VA Loan, contact a VA Loan Specialist.
Can you use the credit report I pulled off the internet?
No, to get approved your lender will have to pull your credit report. This is because the lender needs to see it in a standard format to make sure everything is listed properly and to better analyze your credit situation.
Does running my credit affect my score?
There has been a great deal of debate on this subject. Having a long history of many pulls can lower your score, but over a short period a few pulls will not affect your score. Normally, if your score is lowered by credit pulls it is a very insignificant decrease. Any possible drop from having your credit report pulled is not looked at as an adverse factor in qualifying for a VA Loan. This is because your credit score is not important when it comes to VA Loans. Your credit history, not your credit score, is used for making decisions about your eligibility.
What does a clean credit history mean?
A clean credit history means that you do not have collections, judgments, late payments or other blemishes on your credit report. You have made all your payments on time and do not have any items on your credit that could negatively affect your approval. For more information about credit or other aspects of a VA Loan, check out General VA Loan FAQ's.
VA Loan Specialists
If you have questions, or if you want to determine if a Veteran Home Loan is actually the best financial decision for you, you may get advice from a VA Mortgage Specialist online or call 800-405-6682.
