If the word “credit” makes you nervous—don’t worry, you’re not alone. The good news? VA loans are known for having some of the most flexible and forgiving credit guidelines in the mortgage industry. Whether you have excellent credit or some past bumps in the road, understanding VA credit standards is key to knowing where you stand.

In this post, we’ll simplify how VA lenders look at credit scores, debt history, and what you can do to prepare for a successful loan approval.

Is There a Minimum Credit Score for a VA Loan?

The VA itself does not set a minimum credit score. However, most VA lenders establish their own thresholds. Typically:

• 580–620 is the most common minimum score lenders accept

• Some lenders may allow even lower scores with strong compensating factors

Even if your score isn’t perfect, you may still qualify—especially if your recent payment history is solid and your debt load is manageable.

What Lenders Look At

VA lenders take a holistic look at your credit and financial behavior:

• Payment history: Have you paid bills (especially housing-related ones) on time?

• Credit utilization: Are your credit cards maxed out or used responsibly?

• Derogatory marks: Have you had a bankruptcy, foreclosure, or collection account? When?

• Length of credit history: How long have you had active accounts?

VA loans are more lenient than most programs, especially if the hardship was linked to service-related issues and you’ve since recovered financially.

Recent Bankruptcies or Foreclosures

You may still qualify for a VA loan after:

• Chapter 7 bankruptcy – Typically 2 years after discharge

• Chapter 13 bankruptcy – May be eligible during repayment with court approval

• Foreclosure or short sale – Usually 2 years after the event, assuming good credit since

Every lender is different, so it’s worth discussing your individual timeline with a VA loan expert.

Tips for Strengthening Your Credit Before Applying

Want to improve your approval chances or secure a better interest rate? Here’s how:

• Pay all bills on time—especially housing and utilities

• Reduce balances on credit cards below 30% of their limits

• Avoid opening new credit accounts before buying

• Check your credit report for errors and dispute any inaccuracies

Compensating Factors That Can Help

Even if your credit isn’t ideal, lenders may still approve your loan if you have strong “compensating factors,” like:

• Low debt-to-income ratio

• Significant savings or cash reserves

• Long-term employment history

• History of paying rent that equals or exceeds proposed mortgage

These factors help offset credit weaknesses and show you’re financially stable.

Final Thoughts

Don’t let credit worries stop you from pursuing homeownership. VA credit guidelines are designed to give veterans and military families more opportunities—not fewer. Whether you’re starting from scratch or recovering from a financial setback, the VA loan program gives you room to succeed.

As your South Florida Regional Director and a member of the Compass Military Division, I’m here to help you assess your credit picture and connect you with trusted VA lenders who understand the unique circumstances of military life.

I’m Celia Ruiz—and I believe in second chances and smart planning. Let’s put your VA benefits to work for you.

Stay tuned for our next post: "Finding the Right VA-Approved Home in South Florida.”