In cases other than bankruptcy, acceptable credit is usually considered to be reestablished after the veteran, or veteran and spouse, has made satisfactory payments for 12 months after the date following the last derogatory credit item(s). Some lenders may allow VA buyers to have one or more 30-day late payments. Policies will vary by lender.
When the underwriter analyzes a borrower’s credit; it is the overall pattern of credit behavior that must be reviewed, rather than a few isolated cases of slow payments. An unusual period of financial difficulty does not disqualify the borrower if a good payment pattern has been maintained since then.
If account balances have been reduced to judgment by a court, those balances will have to either be paid in full or be under a repayment plan with a history of timely payments.