How to Get a VA Loan with No Credit

By Sam N. Austin

A VA loan is a type of home mortgage loan that protects the lender against loss if the borrower does not pay back the loan as required. Because the loan provides protections to the lenders, lenders are in turn required to evaluate VA loan applications using VA income and credit standards. VA credit standards differ from general consumer credit standards in several ways. One key difference is that under VA credit standards an absence of credit history is not an adverse condition. Therefore, if you meet all other requirements for VA loan eligibility, meet VA income and credit standards, and extending the loan to you does not violate the lender's policies, you can get a VA loan with no credit.

Apply for a VA loan with a mortgage lender that participates in the VA home loan program. VA lenders include banks, credit unions and mortgage companies.

Provide a Certificate of Eligibility from Veterans Affairs to certify that you are eligible for a VA loan. Many VA lenders are able to obtain the certificate on your behalf if the lender has access to the Web LGY system.

Provide documentation of payments you have made for utilities, rent, automobile insurance or other expenses. The VA loan process requires that VA lenders base their credit analysis on these payment records if you have no established credit history.

Contact the lender directly after you have submitted payment documentation to ensure that they have received it.

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