VA Loan Requirements: Credit Score, Income & the Residual Income Test
The VA doesn't set a minimum credit score — but lenders do, and the VA adds a unique residual income test that helps service members qualify when other loans say no.
Credit score
- The VA has no official minimum. Most lenders set an overlay around 580–620; some go lower with strong compensating factors.
- Better scores get better rates — but VA loans are famously forgiving compared with conventional.
Debt-to-income (DTI)
Lenders look at your monthly debts vs gross income. VA is flexible — a DTI over 41% is allowed if your residual income is strong.
The residual income test (VA's secret weapon)
The VA requires you to have a minimum amount of cash left over each month after the mortgage, debts, and basic living costs — varying by family size and region. Because tax-free BAH and BAS count as income, military buyers usually pass comfortably. It's a big reason VA borrowers default less despite easier credit rules.
Other requirements
- Certificate of Eligibility (service requirement met).
- Primary residence — you must intend to live there (multi-unit OK if you occupy one unit).
- The home must pass the VA appraisal and minimum property requirements.
Counting your exact BAH helps your numbers — look it up in the calculator before you apply.
See the BAH/BAS income lenders will use — by ZIP in the calculator.
Calculate my pay →Frequently asked questions
What credit score do you need for a VA loan?
The VA has no official minimum; most lenders look for about 580–620, though some go lower with strong compensating factors.
What is the VA residual income test?
A VA rule requiring a minimum amount of monthly cash left after the mortgage, debts, and living costs (by family size and region). Tax-free BAH and BAS count as income, so military buyers usually pass.
Can I use a VA loan for an investment property?
Not a pure investment property — it must be your primary residence, though a 2–4 unit is allowed if you occupy one unit.