Which of the following is NOT a characteristic of VA loans?

Which of the following is NOT a characteristic of VA loans?

• A. No down payment required
• B. No mortgage insurance premiums
• C. Minimum credit score requirement of 720
• D. Competitive interest rates

Answer: (C)

The option indicating a minimum credit score requirement of 720 is correct because VA loans do not have a specific credit score requirement established by the Department of Veterans Affairs. Instead, lenders who offer VA loans tend to set their own criteria, which can vary widely. Many lenders may accept borrowers with lower credit scores, often beginning as low as 580, depending on their overall financial profile. This flexibility allows more veterans and eligible service members to access home financing options. Additionally, VA loans are designed to support veterans and active-duty military personnel by providing favorable terms such as no down payment and no mortgage insurance payments. While many lenders may choose to offer competitive interest rates based on market conditions, there is no universal requirement of a 720 credit score, making this characteristic distinctly untrue for VA loans.

The option indicating a minimum credit score requirement of 720 is correct because VA loans do not have a specific credit score requirement established by the Department of Veterans Affairs. Instead, lenders who offer VA loans tend to set their own criteria, which can vary widely. Many lenders may accept borrowers with lower credit scores, often beginning as low as 580, depending on their overall financial profile. This flexibility allows more veterans and eligible service members to access home financing options.

Additionally, VA loans are designed to support veterans and active-duty military personnel by providing favorable terms such as no down payment and no mortgage insurance payments. While many lenders may choose to offer competitive interest rates based on market conditions, there is no universal requirement of a 720 credit score, making this characteristic distinctly untrue for VA loans.