Can I Get a Veterans Affairs (VA) Loan With No Credit Score?

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Can I get a Veterans Affairs (VA) loan with no credit score? This is a common question from service members and veterans, especially those early in their financial journey or those who’ve built their credit history outside of traditional loans or credit cards. While having no or very low credit doesn’t automatically put homeownership out of reach with a VA home loan, it can complicate the process. 

The VA does not require a minimum credit score for eligibility, but the VA is not providing the actual loan. Rather, VA loans are offered through private lenders, and those lenders evaluate loan applicants based on their overall financial picture, payment history, and ability to repay the loan. That’s where a limited credit history can present issues as a borrower.  

In this article, we’ll break down exactly how a VA loan with no credit might work, what lenders look for, which alternative credit documents might help, and practical steps to strengthen your approval chances. Whether you’re buying your first home or returning to the market with less traditional credit, this can help you build a plan for your VA loan process.

Can You Qualify for a VA Loan Without Credit?

You can potentially qualify with some lenders, but the path looks a little different when you don’t have a traditional credit score. Instead of relying on a credit evaluation, the lender may take a more detailed look at your financial habits, meaning things like on-time rent payments, steady income, and responsible management of monthly obligations become even more important. If your financial picture is consistent and well-documented, some lenders could be willing to move forward even without a score, or a very low credit score. 

In many cases, this type of review happens through manual underwriting, which is a process designed for scenarios such as when a credit score doesn’t tell the full story. We’ll break down how that works next.

What is Manual Underwriting?

When a borrower doesn’t have a traditional credit score, or when their credit profile is too limited for an automated approval, lenders may use manual underwriting to evaluate the loan application. 

Manual underwriting is a more hands-on review of your full financial picture in which an underwriter looks directly at the evidence of how you manage your money: income stability, housing payment history, monthly obligations, and any alternative credit sources that show consistent, on-time payments.  

This process can be accommodated in VA lending in certain cases. During a manual underwrite, the lender may: 

• Review rental history, utility payments, insurance premiums, or other recurring obligations 

• Look for patterns of reliable payments over the past 12 months or more 

• Evaluate residual income to confirm you have enough left after major expenses 

• Assess whether your overall financial behavior supports your ability to repay the mortgage 

Manual underwriting generally requires more documentation and may take a bit longer than automated approval, but for borrowers with no or low credit scores, it may create a path to qualifying for a VA loan.

What Counts as Alternative Credit?

If you don’t have a traditional credit score, lenders may look for other ways to understand how you manage your financial obligations. These forms of alternative credit help paint a picture of your reliability. 

The VA allows lenders to use verified, nontraditional payment history to determine whether a borrower with no credit is a satisfactory credit risk. This includes documented payments on obligations outside of the credit bureaus, as long as the lender can obtain verification directly from the source. 

Common examples of acceptable alternative credit include: 

• Rent payments  

• Utility bills, including electric, gas, water, and waste services 

• Cell phone or internet service payments 

• Insurance premiums, such as auto, renters, or life insurance 

• Childcare or tuition payments (when consistent and verifiable) 

When assessing non-traditional credit, consistency is king. Lenders may look for 12 months or more of on-time payments, enough to demonstrate a clear pattern of financial responsibility. 

Although alternative credit doesn’t give you a traditional score, it can still help lenders determine whether your overall payment history suggests you can manage your VA loan payments.

Tips to Strengthen Your Application

If you’re applying for a VA loan without a traditional credit score or limited credit history, the goal is to help the lender clearly see that you manage your financial obligations responsibly. Here are practical steps that can make your application stronger. 

1. Gather Documentation of On-Time Payments

Because the VA allows lenders to use nontraditional credit sources when needed to evaluate applicants, having documented payment records from the source can really help the process. Aim to show 12 months or more of consistent, on-time payments. 

2. Review Your Credit Reports for Accuracy

It can be helpful to check your credit reports for errors or accounts you may not recognize. Incorrect information can slow down underwriting or raise questions. 

3. Keep Your Finances Steady Before Applying

Underwriters evaluate your broader financial picture, including your income stability and monthly obligations. Keeping your financial activity consistent, especially in the months leading up to your application, helps reduce surprises. You should especially avoid big purchases.  

4. Avoid Taking on New Debt

New loans, credit cards, or large purchases can complicate things by adding obligations that may not yet show a clear payment history. New debt can also impact other important aspects of your application, like your credit score or debt-to-income ratio.  

5. Consider Building Some Credit (If Time Allows)

As stated above, if you are imminently attempting to purchase a home, now is probably not the best time to start your credit building journey. However, eligible veterans who are a ways away from buying their home may want to look into building their credit through means that fit their budget and timeline.

FAQs

Is having no credit the same as having bad credit?

No. It simply means the borrower hasn’t used traditional credit or hasn’t built enough history for a score. Bad credit, on the other hand, reflects past repayment issues. Lenders might evaluate these situations differently when determining whether a borrower is a satisfactory credit risk. 

Will manual underwriting make the process take longer?

It can, because the underwriter reviews your payment history and financial documentation manually instead of relying on automated credit findings. Collecting and verifying alternative credit sources is typically a part of the process that adds time.

Final Thoughts

Having no traditional credit history doesn’t automatically close the door on using a VA home loan for otherwise eligible borrowers. The VA give lenders room to look beyond a credit score and focus on other important factors, like your overall financial habits, stability, and ability to take on a mortgage responsibly. With clear documentation, steady payment patterns, and a little preparation, some borrowers without a score can still move forward in the process. 

If you’re early in your credit journey, or rebuilding your credit, knowing what lenders look for can help you plan your next steps with confidence. When you’re ready to explore your options or talk through your specific situation, speak with a trusted loan officer to learn what’s possible and what documentation may be required for your application.