What Credit Score Do You Need to Assume a VA Loan?

Short answer: there's no official minimum credit score for VA loan assumptions. The VA doesn't set a score floor.

Longer answer: the loan servicer still reviews your credit, and your score matters even if there's no published cutoff. Let me explain what that means practically.

The VA's Position

The Department of Veterans Affairs does not require a minimum credit score for loan assumptions. Their guidance focuses on the buyer's overall creditworthiness, not a single number. The servicer (the company managing the loan) is the one who makes the final decision.

This is different from FHA, which has a published 580 minimum. VA is more holistic in their approach.

What Servicers Actually Look For

Every servicer has their own internal guidelines. Some are more conservative than others. But generally, here's what they care about:

1. Recent payment history. The last 12-24 months matter most. If you've been paying everything on time recently, older negative marks carry less weight.

2. The reason behind your score. A score of 580 because of medical bills during a health crisis is viewed differently than 580 because of chronic late payments. Servicers look at context.

3. Current debt load. Your existing monthly obligations versus your income. Even with a low score, low debt relative to income is a positive signal.

4. Stability of income. Consistent employment and reliable income streams show you can sustain the mortgage payment.

5. Residual income. VA has a unique requirement called residual income. This is the money left over after all your expenses and debt payments. The VA sets minimums based on family size and geographic region. You need to meet these thresholds.

Practical Score Ranges

Based on what I've seen in actual assumption approvals and denials:

680+: Smooth sailing. Very unlikely to have credit-related issues.

640-679: Good position. You'll likely be approved unless there are other concerns.

600-639: Solid chance but may face additional scrutiny. Be prepared to explain any negative marks.

560-599: Possible but challenging. You'll need strong compensating factors: high residual income, large cash reserves, or a very clean last 12 months.

Below 560: Difficult. Not impossible, but the odds aren't great unless there's a very compelling explanation and strong compensating factors.

Compensating Factors That Help

If your score isn't where you want it, these factors can strengthen your application:

• **High residual income.** If you have significantly more than the VA minimum, that's a strong plus.
• **Large cash reserves.** Money in the bank (6+ months of payments) shows financial stability.
• **Clean recent history.** If negative marks are 2+ years old and your recent history is spotless, that's very favorable.
• **Low DTI.** Even if your score is moderate, a low debt-to-income ratio demonstrates you can afford the payment.
• **Long employment tenure.** Five or more years with the same employer signals stability.
• **Military service income.** If you're still active duty or receiving VA disability, this income is very reliable in the servicer's eyes.

Steps to Improve Before Applying

If your credit needs work, here's the priority list:

1. **Pay down credit card balances.** Utilization is the fastest score lever. Getting below 30% usage (ideally below 10%) can boost your score 30-50 points quickly.

1. **Dispute errors.** One in five credit reports has an error. Pull all three reports and dispute anything inaccurate.

1. **Don't open new accounts.** Each new application creates a hard inquiry and lowers your average account age.

1. **Become an authorized user.** If a family member has a credit card with a long history and low balance, being added as an authorized user can help.

1. **Pay everything on time.** Set every bill on autopay. Even one missed payment can set you back.

Give yourself 3-6 months of focused credit improvement before applying. The difference between a 590 and a 640 can change your outcome entirely.

Don't Self-Select Out

The biggest mistake I see: people with 620 scores assuming they can't qualify and never trying. You absolutely can qualify at 620. Probably at 600. Maybe even lower with the right circumstances.

Get pre-screened. It costs nothing and it gives you a clear picture of where you stand. If you're close but not quite there, you'll know exactly what to work on. If you're already qualified, you can start shopping immediately.

Don't leave hundreds of thousands of dollars in savings on the table because you didn't ask the question.