You donu2019t specify what you consider u201cbad,u201d but the credit standards for VA loans are quite forgiving. Although VA doesnu2019t have a specified minimum for approval, most companies allow a FICO score as low as 580. The rate for someone with a 580 score will be about .625% higher than for someone with a 740 score.In order to have a score of 580, there must be some combination of the following reported on the credit report:Recent history (within 2 years) of late paymentsAccounts that are currently delinquent or in collectionPublic record items: liens, judgments, bankruptcy or foreclosureHigh or over-limit credit card balances. By u201chigh,u201d I mean significantly over 30% of the credit limit.Some of these items would have to be resolved before any lender will fund a loan. Collection accounts will have to be settled in some manner. Currently delinquent accounts will have to be brought current. Liens and judgments will have to be paid, although tax liens can subordinate to a new first mortgage without being paid off. The borrower would have to have an installment agreement with the taxing authority, however.Ironically, almost any of these necessary actions will raise the credit scoresu2014in some cases, dramatically.I hope this is helpfu.