Honorably discharged veterans during World War II and later are eligible for VA loan benefits. Veterans with at least 90 days of service and who served during : World War II to Korean conflict and Vietnam era are eligible. Serving during peacetime would require 180+ days of active service. Since about 1980 though the requirement has moved to 2 yrs of service in most cases.
Although the VA does not require a certain minimum credit score most lenders want to see a 620 credit score.
Changing economic conditions and increased losses due to loan defaults have motivated lenders to limit who they will lend to.
Since early 2010, most VA lenders in the U.S. have tightened their lending and credit score requirements, making home financing harder to come by for those with credit issues or other criteria that makes their loan more risky.
As a result, getting a loan without a down payment is more difficult, though one of the few remaining options for 100% financing is a VA loan. Major lending groups have generally resolved to set the minimum credit score requirement at 620.
To learn more about this, our article Credit Score Requirements For VA Mortgages is a great place to start.
There are three specific pieces of documentation a lender will need to determine your eligibility:
- A DD214 for discharged veterans.
- A statement of service for active military personnel.
- A certificate of eligibility (COE) to determine you have VA entitlement.
Because each lender has different qualifying guidelines, the next step is to contact your lender to find out if you meet their VA loan requirements such as minimum FICO/credit scores, debt-to-income (DTI) ratios, and find out what your county’s maximum loan amount is.
Your VA lender can help you attain your certificate of eligibility on your behalf.
Lastly, if you have either had a divorce, filed bankruptcy, or had a previous home go into foreclosure, you are not immediately disqualified from a VA loan, although there are some additional restrictions.
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