VA Loans With Bad Credit in San Antonio
Bad Credit / 500 FICO: The Short Version
The VA sets no minimum credit score. Lenders do. We fund VA purchase loans in San Antonio down to a 500 FICO with zero down payment, no mortgage insurance, and no lender fees, provided your income, housing history, and residual income support the payment.
Most lenders quietly require a 620 or 640 score on a VA loan. That is a lender overlay, not a VA rule. We work down to 500 because a rough credit stretch is not the same thing as being a bad borrower — especially after a deployment, a divorce, or a PCS that went sideways.
How You Qualify
No VA-mandated score
VA guidelines evaluate the whole file: income stability, residual income, and payment history. There is no published minimum FICO in VA Pamphlet 26-7.
Our floor is 500
We accept scores from 500 up. Below roughly 580, expect closer underwriting review of your last 12 months of housing payments.
Recent housing history matters most
Twelve months of on-time rent or mortgage payments carries more weight in a manual underwrite than the score itself.
Residual income test
VA requires a minimum amount of monthly income left over after all obligations, scaled by family size and region. This is the test that most often decides a low-score file.
What To Bring
- Certificate of Eligibility (we pull it for you)
- Last 12 months of rent or mortgage payment history
- Two most recent pay stubs and LES if active duty
- Two years of W-2s or tax returns
- Two months of bank statements
- Written explanation for any collections, charge-offs, or late payments
Common Mistakes
Paying off old collections right before applying
Settling an aged collection can re-date the account and drop your score. Ask before you pay anything off.
Assuming a 620 rule applies everywhere
One lender's denial is not a VA denial. Score overlays vary widely between lenders on the exact same VA program.
Opening new credit during the process
A new card or auto loan between pre-approval and closing can re-price or kill the file.
Step By Step
Pull a real tri-merge report
Consumer apps show educational scores. We pull the mortgage FICO versions lenders actually use.
Triage the report
We identify which items are worth disputing, which to leave alone, and which need a letter of explanation.
Document 12 months of housing
Cancelled checks, bank debits, or a verification of rent from your landlord.
Run the residual income test
We confirm the payment fits VA's residual income table for your family size before you shop.
Issue a pre-approval you can shop with
Underwriter-reviewed, not an automated guess, so a listing agent takes it seriously.
Bad Credit / 500 FICO: VA Loan Questions
Quick Answer
The VA sets no minimum credit score. Lenders do. We fund VA purchase loans in San Antonio down to a 500 FICO with zero down payment, no mortgage insurance, and no lender fees, provided your income, housing history, and residual income support the payment.
Where This Applies in San Antonio
Same benefit, different neighborhoods, counties, and situations. These pages go deeper.
Where You're Buying
County Loan Limits
Other Situations
Ready To See Your Numbers?
Get pre-qualified in about five minutes and shop with a real number in hand.
Proudly Serving Military Families Since 2019