flying tigerEven though the VA loan is more lenient than conventional mortgage programs, there are still credit requirements in order to be approved for a VA loan.   Most banks require a minimum 620 credit score and 12 months mortgage history with no lates.

Types of imperfections on a credit report that may affect the VA loan approval process:

  • Collections
  • Late payments
  • Judgments

Payment History Factor

Re-payment history is an important factor in getting approved for a VA loan. Your rental and mortgage payment history signify your ability to pay your housing payment and will better qualify you for a VA loan.

If you lack credit history, provide explanations for any of the following:

  • If you are a veteran who has been recently discharged and have not been able to establish credit
  • Use cash instead of credit on a regular basis for bill paying and purchases
  • Veteran has not used credit since reconciliation of bankruptcy and judgments


Bankruptcy does not immediately disqualify a veteran who is applying for a VA loan. If you have had a bankruptcy discharged over 2 years previously to applying for a VA loan it may not be considered. If the bankruptcy discharge was within 1-2 years of applying for a VA loan there are a couple things that are taken into consideration that may still help qualify a veteran:

  1. If you have obtained credit following the bankruptcy and made satisfactory timely payments
  2. If reasons for Bankruptcy were above and beyond the control of the veteran-Loss of job, medical bills, divorce, loss of a business etc.


Foreclosure is still another issue that will be a deciding factor in qualifying a veteran for a VA loan. The same rules apply as did with bankruptcy, but if the foreclosure is on a VA loan that may change the amount of entitlement available to be used.

Plan ahead and improve credit

When applying for a VA loan, work in advance to reconcile issues on your credit report by paying collection accounts in full or setting up payment plans with judgments against you.

Here are several things you can do:

  • Get a free copy of your credit report in order to review
  • Letters from creditors stating balances have been paid in full
  • Pay credit card bills down to at least half of what open credit in on card
  • Secured credit cards can help re-build credit

Close excess credit cards that are open only keeping necessary and low interest rate credit cards open—to much open credit can hurt you qualify for a VA loan.

For Recommended Credit Repair companies -

Sky Blue Credit Repair: Our Top Choice among Credit Repair Companies

Sky Blue Credit Repair has our vote for the best credit repair program available. It is our opinion that they have taken the business to a whole new level. This is far more than just a dispute factory. Sky Blue focuses on making sure you are left with truly usable credit – credit that meets prospective lender guidelines so you can really benefit in a tangible way.

We especially appreciate the Sky Blue Credit Repair focus on personalized customer service. The one-on-one attention is part of a comprehensive approach that makes them so attractive. They include unlimited credit bureau disputes, debt validations, credit score consultation, guidance with building new credit, and even assist with rehabilitation of student loans if needed.

We also really like the fact that Sky Blue Credit Repair only charges a single low monthly fee without requiring any upgrades. One price covers everything needed to clean up and restore your credit. They also offer a great 50% discount for spouses if you sign up together.

Sky Blue Highlights:

  • Credit repair services offered since 1989
  • A focus on the highest ethical standards
  • One-on-one customer service
  • A unique approach designed to build truly usable credit
  • $49 setup fee followed by $49 per month – half price for spouse
  • All inclusive – No confusing program options or costly upgrades needed

Check them out at Sky Blue Credit Repair. We think you will be impressed too!

Related posts:

  1. Recommended Credit Repair Companies
  2. 4 VA Loan Myths Demystified
  3. VA Loans – An Overview

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