Many veterans who are currently in a VA loan are hearing about the VA streamline refinance program (also known as the VA IRRRL program) and have had someone tell them that “there is a minimum credit score requirement” for the Illinois VA streamline refinance program.

Which is kind of true.

Realizing that the words “kind of true” can be confusing — here is why “kind of” fits:

VA doesn’t actually require a minimum credit score, but many lenders do.

As you are probably aware, the VA doesn’t actually lend you money, various VA-approved lenders actually lend you the money and your loan is insured by HUD in the event of a default. So because VA isn’t the organization who is actually lending you money, if a certain lender has a guideline that requires a minimum credit score for the VA streamline refinance program, that guideline must be met.

VA Streamline Refinance: What Minimum Credit Scores Apply?

For many lenders right now, the minimum credit score for the VA streamline refinance is 620. There may be a select few that don’t require a minimum credit score, but most of the lenders offering the VA streamline refinance are requiring a 620.

So if your mid credit score is below a 620, and you have a lender (or two, or three…) tell you that they require a 620 minimum credit score, be sure to ask them if they are aware of any other lender who doesn’t require a minimum credit score for a VA streamline.

I am aware of at least one!

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