VA Home Loans with No Minimum Credit Score
You earned this benefit, and a low score should not keep you out of a home. The VA does not set a minimum credit score, which means approvals come down to your full story, recent payment behavior, and whether the new payment is safe. Our job is to present that story clearly so an underwriter can say yes. Connect with the JD.Mortgage team to review your path today.
What “no minimum credit score” really means on a VA loan
The VA’s guideline has no hard floor like 620 or 640. Those numbers are lender overlays, not VA rules. When automated underwriting can’t issue an approval, we move to manual underwriting to assess the whole file. That includes income stability, rent history, and residual income. See how VA approvals work beyond a score and where you stand.
Scores under 580: what it takes to make it work
Sub-580 files can be eligible when the rest of the picture is strong. We focus on a clean recent payment history, stable verified income, and meeting VA residual income by family size and region. Trade lines re-established in the last 12 months carry more weight than old negatives. If your score is under 580, we’ll map an approval plan or a short timeline to get there. Review the process and how we build a strong manual file.
Derogatory credit in the last 12 months does not automatically disqualify you
One late or an isolated incident within the past year is not an automatic denial. The key is cause, context, and correction. If we can show the event was isolated, resolved, and followed by re-established on-time behavior, we can typically work around it. That’s the point of manual underwriting. Tell us what happened and we’ll shape it into a clear, factual explanation.
Manual underwriting, in plain language
Manual underwriting is a person reviewing your file with common sense. We document income, debts, housing history, and the reasons behind any late payments. The goal is simple: decide whether the new mortgage is a safe, reasonable payment for you. It is not about finding reasons to say no; it is about balancing risk with evidence. See our step-by-step process from first call to clear-to-close.
What underwriters look for first
Three things lead the decision: recent payment behavior, steady income, and residual income after taxes and debts. A clean last 12 months counts more than older issues. Documented, stable income shows the payment is realistic. Residual income targets by family size and region confirm room in the budget. Use our calculator to preview a payment that fits.
How to prepare a sub-580 or thin-credit VA file
Gather proof early to avoid slowdowns: last 30 days of pay stubs, two years of W-2s or 1099s, two years of tax returns if self-employed, two months of bank statements, LES if active duty, and 12 months of on-time rent proof. The more complete your file, the easier it is to earn exceptions. Open our preparation checklist and get a head start.
Rent history and landlord contacts we will request
Consistent on-time rent is powerful compensating strength, especially for scores under 600. Please provide names, phones, and emails for landlords or property managers covering the last 24 months. If you paid a private owner in cash, bring bank statements or receipts to prove the pattern.
Explaining derogatory credit the right way
Keep your letter simple and factual: what happened, when it happened, why it was outside your control or isolated, and how it is resolved. Attach proof such as medical bills, layoff notices, or settlement letters. The aim is to show the problem ended and your current finances are stable. Ask us for a concise template you can complete in minutes.
What “re-establishment of credit” really means
Re-establishment is time plus behavior. A clean stretch of on-time payments, usually 12 months or more, shows new habits and lowers risk. That is why a car repo last month is tough, while the same repo 14 months ago with clean history since can be acceptable.
Extenuating circumstances vs. ongoing hardship
Underwriters separate a one-time event (illness, short-term layoff, natural disaster) from ongoing strain. We help draw that line with documentation and a budget that clearly supports the new mortgage. When the event is behind you and the numbers now work, approvals follow. Share your scenario and we’ll frame it the right way.
Residual income made simple
Residual income is the money left after taxes, new housing payment, and debts. VA sets target amounts by region and household size. Meeting or exceeding that target offsets low scores and strengthens manual approvals. We calculate it early to set you up to win. Estimate your payment and see your room to spare.
Simple example of how an underwriter thinks
Picture steady income, 12 months of on-time rent, a few older lates, and a payment close to current housing costs. Residual income meets the regional target. With a short letter explaining the past issue and supporting docs, this file works under manual underwriting. It is not about a number; it is about the whole picture. Let us review your numbers for a quick read.
How we’re different (and why that matters with low scores)
Many lenders use overlays that shut the door too early. We underwrite to true VA guidelines, escalate to manual review when it helps, and present complete files that answer questions before they’re asked. That combination is how sub-580 buyers still get clear approvals. See all loan options we can pivot to if VA isn’t ideal today.
What we will ask you to provide
Please have a government ID, DD-214 or COE if needed, 30 days of pay stubs, two years of W-2s/1099s, two months of bank statements, landlord contacts for two years, and letters for major credit events. Self-employed borrowers should include business returns and year-to-date figures. Review the document list so nothing slows you down.
Timeline and what to expect
Manual underwriting can add a few days, mostly for third-party verifications. Fast, complete documents shorten that timeline. We communicate proactively so you’re never guessing what’s next. Tell us your target closing date and we’ll back into a smart schedule.
When a short pause is the smarter move
Sometimes waiting 60–120 days to build a clean streak is the best path to approval and a better rate. We’ll be blunt if that helps your outcome and give you a simple action plan while you wait. Ask for a readiness plan tailored to your goals.
Frequently asked questions
Can I get a VA loan with a score under 600?
Yes. The VA has no set minimum score. With strong recent history, residual income, and a documented story, sub-600 files can be approved through manual underwriting. Get a quick review today.
Do I have to pay old collections first?
Not always. It depends on type, size, and age. Do not pay large items before we evaluate; paying can temporarily drop scores. Let us look first and guide you.
What if I had a late in the last 12 months?
If it’s isolated and you’ve re-established on-time payments, we can usually work around it with documentation. Tell us what happened and we’ll structure the file.
What if a lender already said no?
Overlays vary. A no from one lender can still be a yes under true VA rules with manual review. Send us your scenario for a second opinion.
Other programs if VA isn’t the best fit today
If VA isn’t ideal this minute, we pivot to the next best option and plan your path back to VA later. Explore FHA, Conventional, USDA, Non-QM, and second-lien options like HELOCs and closed-end seconds. See all programs you can compare.
Ready to start the right way?
You do not need a perfect past to buy a home with a VA loan. What you need is a clear plan, honest paperwork, and a team that knows how to present your file. That’s what we do every day. Contact the JD.Mortgage team and we’ll build your approval path together.
Explore more loan programs
We serve many needs so you can plan for now and later: Conventional, Loan Options, FHA, Purchase, Main, Jumbo, Calculator, Mortgage Process, VA (no minimum credit score), Refinance, USDA, Construction Loans, HELOC, Non-QM, Second Mortgages. Connect with us when you’re ready.
We help with VA, FHA, USDA, down payment assistance, investment property loans, Non-QM (DSCR, bank statement, ITIN), HELOCs, second mortgages, reverse mortgages, and construction loans. Explore the details: VA, FHA, USDA, DPA and options, Non-QM, HELOC, Second, Reverse, Construction. Contact us to choose the best fit.