Hey everyone, I just finished a plain English breakdown of Chapter 4 of the VA Handbook, and it is all about credit. Here is the big takeaway: the VA itself does not set a minimum credit score, so Chapter 4 shows what the VA actually requires from lenders on credit, including the residual income focus, the 12-month housing payment history rule, and what derogatory items lenders must look at. If you have ever wondered what the VA really looks at when it comes to credit, this one clears it up. https://scarpero.com/va-handbook-chapter-4-credit-underwriting/

If Veterans United or another big online lender turned you down, take a breath. That turndown is not the final word, because a different lender who does manual underwriting can often find a way to get your VA loan approved. I break it all down in my latest article. https://scarpero.com/what-to-do-if-you-are-turned-down-by-veterans-united-or-another-online-lender/

Most veterans assume a low credit score means a VA loan is out of reach. With manual underwriting, a real human underwriter looks at your whole financial picture instead of a computer rejecting you on your credit score alone, so you can still get approved even with bad credit. I wrote an article that breaks down exactly how it works. https://scarpero.com/va-manual-underwriting-your-key-to-va-home-loan-approval-if-you-have-bad-credit/

@Carlos Scarpero Hey! I could use your VA expertise on a file. I’m doing a VA cash-out refinance in Colorado on an SFR with an existing VA loan, so it’s VA-to-VA. The VA appraisal came back noting a private well, and we’re being asked for a VA clean water test. I found VA guidance that previously allowed the well-water testing requirement to be waived on a refinance when the property was already encumbered by a VA-guaranteed loan. Have you run into this recently on a VA cash-out? Do you know if there’s still a waiver or another way around the water test on a VA-to-VA refinance? Appreciate any insight!

Here is something most veterans do not know: the VA does not set a minimum credit score for a home loan. Not by law, not by rule. Lenders can add their own credit overlays, but if you know how those overlays and manual underwriting work, you may still get approved with low credit. I break it all down here: https://scarpero.com/how-to-get-a-va-home-loan-with-bad-credit/