Shilo Zitting in Salt Lake City | How To Get A VA Home Loan With Bad Credit
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how to get a va loan with bad credit

How To Get A VA Home Loan With Bad Credit

How To Get A VA Home Loan With Bad Credit

Bad credit or no credit and you’re a Veteran….  

It is still possible to get a VA loan with bad or no credit.  Many Veterans don’t realize that they can still qualify to purchase or refinance.  Necessary documentation can be required and is most helpful, such as:

  • Sourced income stability
  • Evidence of repayment agreements for bankruptcies, judgments, or collection accounts
  • Consistent housing payments, and/or credit account payments.



We’d like you to know that The Department of Veterans Affairs mortgage approvals’ are not based on credit score minimums and offers options with low to NO credit scores altogether. Rather, VA-approved lenders set the minimum required scores and/or may not have any minimums.  All because they are backed by the government.  It’s interesting to note that Veterans who are in credit counseling with a Chapter 13 bankruptcy still may qualify for a new mortgage.  The Z Mortgage Team can answer all of your questions about how to get a VA home loan with bad credit or even no credit.  

Does a poor credit score affect the loan amount?

Another note to consider, there are no maximum debt ratios to qualify for a VA loan and your credit doesn’t affect or set the loan amount.  Only county limits should affect the loan amounts.  With said, most counties have maximum loan limits of $424,100.  However, The Department of Veterans Affairs offers loan limits that can supersede county conforming limits and is merely based upon a Veteran’s eligibility. Take a moment to talk with us to verify of what you would qualify for individually or as a Veteran family.

How are VA Loans applications considered for applicants with poor credit?

It is important to know that the Department of Veterans Affairs loans are not credit score driven for mortgage approvals and can offer such under any type of circumstances.  Also know  that the VA can still consider applicants with a previous bankruptcy, foreclosure, judgments or collections in place.  Necessary documentation will be required and is most helpful to determine what possibilities are available for you.

Based on the following statement from the VA, it demonstrates the decreased emphasis on credit scores.  

It says, “The applicant’s past repayment practices on obligations are the best indicator of his or her willingness to repay future obligations. Emphasis should be on the applicant’s overall payment patterns rather than isolated occurrences of unsatisfactory repayment.”  The VA takes into large consideration the borrower’s ability to meet mortgage payments as well as all other living expenses.

Don’t think that getting a VA home loan with bad or no credit isn’t possible based upon all of the considerations afforded by The VA and VA-approved lenders.  If you are considering a refinance or purchasing a home consult with Shilo and The Z Mortgage Team first on how to get a VA home loan with bad credit.

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