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Credit and Your VA Loan

Credit plays an important role in every potential homebuyers' ability to receive a loan for the home of their dreams. Prospective homebuyers hoping to use their VA benefit will see that credit not only helps determine approval for the loan, but also plays a role in the interest rate you qualify for.

When considering purchasing a home with a VA Loan, striving for a good credit score is an excellent starting point.

Credit Scores and VA Lending

Credit scores play dual roles – helping both lenders and prospective homebuyers in the VA mortgage process. Simply put, your credit score is a risk indicator, helping ensure you are a safe "bet" and that the loan will be repaid on time. This is not only meant to protect lenders, but to safeguard potential homeowners from being allowed to borrow more than they can handle.

A common worry amongst military families is the additional challenges when it comes to building and maintaining a good credit score. Frequent relocation, deployment and other issues can take a toll on finances. Luckily, most VA lenders have a credit score requirement of 650, and Veterans United is no different in that respect. But what sets Veterans United apart is its special focus on veterans who may fall below the credit score requirements.

What Should I Do About My Low Credit?

Potential VA Loan homebuyers shouldn't abandon their dreams of homeownership on account of a low credit score.

With a little hard work, your credit can change, but knowing what improvements to make can be tricky. That's where the Veterans United Lighthouse program can help.

The Veterans United Lighthouse Program is a free service that provides potential homebuyers with the tools to improve their financial profile. And, since 2008, the Veterans United Lighthouse Program has helped more than 33,000 previously denied borrowers close on a home.

Working with the Lighthouse Program is a free process, but not necessarily an easy one. Improving your credit requires commitment and hard work.

If you're ready to make the necessary changes in pursuit of a VA home loan, partner with a helpful advocate. You can reach a Lighthouse Credit Specialist by calling 1-888-392-7421 (credit specialists available 9am to 5pm CST, Monday through Friday) or by visiting