Yes. You can often get a VA loan in Nevada with collections on your credit report. VA's own rule says a collection does not have to be paid off if you are otherwise a good credit risk. VA lets lenders leave medical collections out of the math. Court judgments and late debts owed to the federal government are the exceptions. Those must be handled before the loan is approved.
What changed in 2026. In a handbook change dated August 24, 2026, VA corrected the sentence that tells lenders how to count an unpaid collection in your monthly debts. It now reads 5% of the balance, divided by 12. On a $3,000 collection, that is $12.50 a month. Read literally, the old wording would have counted $150.
A collection is a debt the original company gave up on and handed to a debt collector. A charge-off is a debt the company wrote off as a loss. Both show up on your credit report. Neither one, by itself, ends a VA loan.
This guide covers each VA rule with its source. Each rule was checked against published sources on October 3, 2026, and the Sources list names where each one was read.
Key takeaways
- Collections do not have to be paid off by VA's rule. 38 CFR 36.4340(g)(1) says so, as long as you are otherwise a satisfactory credit risk.
- Unpaid non-medical collections still count. Under VA Pamphlet 26-7 Change 47, dated August 24, 2026, lenders count 5% of the balance divided by 12 as a monthly debt.
- Medical collections can be left out. VA's November 20, 2023 update lets lenders leave them out of the ratios and the credit review. VA's lender training adds that this does not apply once a medical debt became a judgment or a lien (a legal claim against your property).
- Court judgments and late federal debts must be handled before approval. A judgment must be paid off, or be on a repayment plan the lender accepts. A late federal debt must be brought current or put on a plan the agency accepts.
- Nevada's time limits do not erase a debt from a lender's view. Nevada's 4 or 6 year lawsuit clock does not remove a collection from your credit report.
- Can you get a VA loan with collections: often yes, without paying them off first.
- How an unpaid non-medical collection counts: 5% of the balance, divided by 12, each month.
- Medical collections: lenders may leave them out of the math and the credit review.
- Court judgments: paid off, or on a repayment plan the lender accepts, before approval.
- Late federal debts: must be brought current or on an approved plan first.
- Lender rules: can be stricter than VA's, so ask before you apply.
Can you get a VA loan with collections?
Often, yes. A VA loan can be approved with open collections on your credit report, because VA's rule does not require you to pay them off first if you are otherwise a satisfactory credit risk.
The rule sits in VA's credit regulation, 38 CFR 36.4340. Paragraph (g)(1) covers what VA calls adverse data. That means late payments, collections and other marks against you.
Where a collection account has been established, if it is determined that the borrower is a satisfactory credit risk, it is not mandatory that such an account be paid off in order for a loan to be approved.
38 CFR 36.4340(g)(1), Underwriting standards, processing procedures, lender responsibility, and lender certification, Electronic Code of Federal Regulations, current text read October 3, 2026. Read the rule.
Notice the condition. You still have to be a "satisfactory credit risk." That is VA's phrase for a borrower whose whole record shows they are likely to repay. The lender looks at the full picture, not one account.
The same paragraph warns about paying old debts in a rush. If you pay a debt only because you are about to apply, VA's rule says that does not change the fact that the record was poor. Paying can still help, since it removes a counted debt. It just does not rewrite your history.
One more point. VA has no minimum credit score. Many lenders set one anyway. The guide to VA credit score requirements in Nevada explains why lenders name different numbers.
How does VA count a collection in your monthly debts?
VA counts an unpaid non-medical collection as a monthly debt equal to 5% of its balance, divided by 12, unless you already have a payment plan with the collector.
Lenders use this number in your debt-to-income ratio, or DTI. DTI is your monthly debts divided by your monthly income before taxes. VA's standard is 41% or less, under 38 CFR 36.4340(d). Going over 41% does not end the loan by itself, but VA's rule then calls for more review.
The counting rule lives in VA's lender handbook, VA Pamphlet 26-7, Chapter 4, Topic 7. VA changed one sentence of it in August 2026.
Non-medical collection accounts without established payment arrangements are to be included with a calculated monthly payment using 5% of the outstanding balance of the collection divided by 12 months.
U.S. Department of Veterans Affairs, Transmittal of Change 47 to VA Pamphlet 26-7, Revised, VA Lender's Handbook, dated August 24, 2026, Chapter 4, Topic 7, subsection b, paragraph 3. Read the change.
Before Change 47, the sentence ended at "5% of the outstanding balance of the collection." VA called the change a fix to "a minor inconsistency in account payment calculations." VA's 2023 lender training already showed some student loan payments counted the same way, at 5% of the balance divided by 12. For a large collection, the difference in the counted amount can be meaningful.
| Collection balance | Old sentence (5% of balance) | Change 47 (5% ÷ 12) |
|---|---|---|
| $500 | $25.00 | $2.08 |
| $1,500 | $75.00 | $6.25 |
| $3,000 | $150.00 | $12.50 |
| $6,000 | $300.00 | $25.00 |
| $12,000 | $600.00 | $50.00 |
The rule covers collections without a payment plan. If you already pay the collector on a set plan, the lender can usually use that plan's payment instead. The handbook adds that borrowers with past collections "should have re-established satisfactory credit." In plain words, recent on-time payments on your other accounts matter.
Valley West take.VA's rule does not require you to pay a non-medical collection first, but a lender's own rules and your credit score may still care. Ask a lender how each account counts before you decide where your cash goes.
Do medical collections count on a VA loan?
Usually not. VA lets lenders leave medical collections and medical charge-offs out of a VA loan's ratios and out of the review of your credit. The exception is a medical debt that became a court judgment or a lien.
VA announced this to lenders on November 20, 2023. Lenders could use it right away and had to use it for all loan applications after January 1, 2024.
Medical collections and charged-off medical accounts do not need to be considered in qualifying ratios or when determining the residual income. The presence of medical collections and/or charged-off medical accounts should not be considered when determining an applicant's creditworthiness.
U.S. Department of Veterans Affairs, Veterans Benefits Administration, "VA Pamphlet 26-7: Update on Collection Accounts," bulletin sent November 20, 2023. Read the bulletin.
Residual income is the money left each month after your housing costs and other debts are paid. VA sets a minimum by family size and region. The Nevada VA residual income guide has the 2026 West region table.
VA's 2023 lender training adds one limit. This flexibility "does not apply to items reduced to a lien or judgement." So a hospital bill that turned into a court judgment follows the judgment rules below.
Do you have to pay off a judgment before a VA loan?
Usually, yes. VA's regulation says a court-ordered judgment must be paid off before a new VA loan is approved. VA's handbook also allows a judgment on a repayment plan with a record of on-time payments.
A judgment is a court order that says you owe the debt. It happens when a creditor sues and wins. It is different from a collection, which is only a claim.
The same paragraph that lets collections stay unpaid draws the line here. In VA's words, "Court-ordered judgments, however, must be paid off before a new loan is approved." VA's lender handbook, in Chapter 4, Topic 7, says a judgment must be paid in full or be on a repayment plan with a history of timely payments, as reported in published copies of that chapter. Whether a lender will use the plan path is its call, so ask first.
In Nevada, a creditor has 6 years to bring an action on a court judgment, and the judgment can be renewed, under NRS 11.190(1)(a). An old judgment does not fade away on its own. Check the public records section of your credit report, or Clark County District Court or Las Vegas Justice Court records, before you shop for a home.
How does VA treat charge-offs and disputed debts?
A non-medical charge-off is part of your credit history, so the lender has to weigh it and explain the approval. A disputed debt can be set aside only if it is not a judgment.
A charge-off usually means the creditor stopped trying to collect and took the loss. It is still a mark on your record. VA's regulation says that when there is derogatory credit, meaning negative marks, and the loan is still approved, "the basis for the decision must be explained."
Disputes work differently. VA's rule lets lenders consider a veteran's claim of "bona fide or legal defenses" on an unpaid debt. That means a real reason you do not owe it, such as identity theft or a billing error. The same sentence ends: "Such defenses are not applicable when the debt has been reduced to judgment."
If you think a collection is wrong, the CFPB, the federal Consumer Financial Protection Bureau, explains how to dispute errors on a credit report. You can pull your reports free at AnnualCreditReport.com.
Here is how each kind of debt usually lands under VA's rules.
| Account type | Must it be paid first? | Counted in monthly debts? |
|---|---|---|
| Medical collection or medical charge-off | No | Lenders may leave it out |
| Non-medical collection, no payment plan | No, if you are otherwise a satisfactory credit risk | Yes, 5% of the balance divided by 12 |
| Non-medical collection on a payment plan | No | Usually the plan payment |
| Non-medical charge-off | No set VA payoff rule; the lender must weigh it | Not set by VA's rule; the lender weighs it |
| Disputed debt, not a judgment | Lender may consider your defense | Depends on the lender's review |
| Court judgment | Yes, under 38 CFR 36.4340(g)(1), or a repayment plan with on-time payments under the handbook | Gone once paid; a plan payment counts |
| Late federal debt | Bring current or set up a plan the agency accepts | Depends on the plan and the lender's review |
Can you get a VA loan if you owe a federal debt?
Not while it is late. A VA loan cannot be approved while you are behind or in default on any debt to the federal government.
An applicant for a Federally-assisted loan will not be considered a satisfactory credit risk for such loan if the applicant is presently delinquent or in default on any debt to the Federal Government, e.g., a Small Business Administration loan, a U.S. Guaranteed Student loan, a debt to the Public Health Service, or where there is a judgment lien against the applicant's property for a debt owed to the Government.
38 CFR 36.4340(g)(5), Federal debts, Electronic Code of Federal Regulations, current text read October 3, 2026. Read the rule.
The fix is in the next sentence of the rule. The loan can move forward once the account is brought current. It can also move once you and the agency agree on a plan, or once a federal judgment is paid. You still have to qualify on income and the rest of your credit.
Lenders check for these debts in a federal database called CAIVRS, the Credit Alert Verification Reporting System that HUD runs. A defaulted federal student loan is one example the regulation names. Once it is back in good standing, VA counts the payment under its own student loan rule, covered in the guide linked at the bottom of this page.
Have collections on your report?
See how VA's rules apply to your report. Rules checked October 3, 2026. A local lender can walk through your credit report with you and explain how VA's rules apply to the accounts on it. No obligation, and all loans are subject to approval.
Check my VA loan optionsDo Nevada's debt time limits help with old collections?
Not for a VA loan. Nevada's time limits only cap how long a creditor can sue you. They do not remove a collection from your credit report or from a lender's review.
Nevada sets these limits in NRS 11.190. A creditor has 6 years to sue on a debt founded on a written contract. It has 4 years on an open store account or a debt not founded on a written contract. After that, the debt is often called "time-barred."
Credit reports run on a different clock. Under the Fair Credit Reporting Act, 15 U.S.C. 1681c, credit bureaus generally drop a collection or charge-off about 7 years after the late payment that led to it. That limit does not even apply to a report pulled for a loan of $150,000 or more, under 1681c(b)(1). So a debt can be too old to sue on in Nevada and still show up when a VA lender pulls your credit.
Nevada adds one more protection. The law is NRS 11.200(2), last amended in 2023. It says a payment made after the time limit runs out "does not revive the applicable limitation." In plain words, paying something on an old time-barred debt in Nevada does not restart the clock for a lawsuit.
That does not make every old debt safe to ignore. Rules on what counts as a written contract can be tricky. For a specific debt, talk with a Nevada attorney or read the CFPB's debt collection guide.
Valley West take.Pull all three credit reports at least 60 days before you shop. That gives time to dispute errors, settle a judgment, or fix a federal debt before a seller is waiting on you.
What does a real collections file look like?
Here is a worked example with four common accounts. It shows that the type of debt matters more than the dollar amount.
Say a Las Vegas veteran earns $6,000 a month before taxes. Their credit report shows four accounts.
- A $3,000 non-medical collection from an old cell phone account, with no payment plan. Change 47 math: $3,000 × 5% = $150. Then $150 ÷ 12 = $12.50 a month counted.
- A $4,200 medical collection from an emergency room visit. Under VA's 2023 update, the lender can count it as $0.
- A $1,800 court judgment from a past landlord. Under 38 CFR 36.4340(g)(1), it must be paid off before the new loan is approved, unless a lender accepts it on a repayment plan with on-time payments.
- A federal student loan in default. Under (g)(5), it must be brought current or put on an approved plan before approval.
Now the effect on DTI. $12.50 ÷ $6,000 = about 0.2 percentage points of DTI (a point is 1% of income). Read literally, the old sentence would have counted the same collection as $150, or 2.5 points. The difference is $150 less $12.50, or $137.50 a month of counted debt.
So in this file, the $4,200 medical bill does nothing, and the $3,000 collection barely moves the ratio. The $1,800 judgment and the student loan default are what decide the timing. These figures are illustrative only and are not a quote, offer, or commitment to lend.
If a divorce left you with some of these accounts, the guide to a VA loan after divorce in Nevada covers how court-assigned debts are handled.
Count your collections
The VA collections counter below shows how much monthly debt your unpaid accounts may add under VA's 2026 rules. Enter your own numbers.
VA collections counter
This runs in your browser and saves nothing. It follows 38 CFR 36.4340 and VA Pamphlet 26-7, Chapter 4, Topic 7, as changed August 24, 2026. It is a guide, not an approval, and not a commitment to lend.
Two items must be handled before approval: the court judgment must be paid off or be on a repayment plan the lender accepts, and the late federal debt must be brought current or put on a plan the agency accepts. The collections themselves do not have to be paid first under VA's rule. This is a guide, not an approval. Lenders can add stricter rules.
Method: unpaid non-medical collections with no payment plan count at 5% of the total balance divided by 12 (Change 47). Medical collections are shown at $0 because VA lets lenders leave them out (VA bulletin, November 20, 2023). Judgments must be paid off under 38 CFR 36.4340(g)(1), or be on a repayment plan under the handbook. Late federal debts must be resolved under (g)(5). A collection on a payment plan counts at the plan payment instead, so leave it out here.
The decision rule
Whether your collections slow down a VA loan depends on the type of debt, not the size. Use the first line that fits you.
- Any late federal debt. Fix it first. Call the agency, bring it current or set up a plan, and get it in writing.
- Any court judgment. Plan to pay it off before the loan is approved. If it is already on a repayment plan with on-time payments, ask your lender whether it will accept that path.
- Only medical collections. VA lets lenders leave them out. Make sure the lender can see they are medical.
- Non-medical collections with no plan. They do not have to be paid first. Run the 5% ÷ 12 math and see if your DTI still works.
- A collection you think is wrong. If you believe it is inaccurate, you can dispute it with the credit bureau and keep your records. A disputed debt that is not a judgment can be weighed by the lender.
One check applies to every line. Your recent record matters most. A recent record of on-time payments on your other accounts is the kind of record that helps a lender explain an approval. If your file also has a bankruptcy or foreclosure, read the guides to a VA loan after bankruptcy and a VA loan after foreclosure.
The bottom line
Collections do not automatically end a VA loan in Nevada. VA's rule lets them stay unpaid if the rest of your record is sound. VA lets lenders leave medical collections out. Under the handbook change dated August 24, 2026, an unpaid non-medical collection counts as 5% of its balance divided by 12, which is lower than a literal reading of the old wording.
Judgments and late federal debts are the real hurdles, and both must be dealt with before the loan is approved. Nevada's lawsuit time limits do not take a debt off your report, so plan around what your report actually shows.
Want the full Las Vegas picture first? Start with VA home loans in Las Vegas, or read Valley West's main-site guide to the parts of your credit health that lenders look at.
Article history
- October 3, 2026, first published. Each rule and quotation was checked that day against the sources listed below, including VA Pamphlet 26-7 Change 47, dated August 24, 2026.
| Rule | Source | Date in source |
|---|---|---|
| Collections, judgments, disputes | 38 CFR 36.4340(g)(1) | Current eCFR text, read 10/03/26 |
| Federal debts | 38 CFR 36.4340(g)(5) | Current eCFR text, read 10/03/26 |
| 41% DTI standard | 38 CFR 36.4340(d) | Current eCFR text, read 10/03/26 |
| 5% ÷ 12 collection math | VA Pamphlet 26-7, Change 47 | Dated 08/24/26 |
| Judgment repayment plan | VA Pamphlet 26-7, Ch. 4, Topic 7 | Published copy, read 10/03/26 |
| Medical collections | VA collections update bulletin | Sent 11/20/23 |
| Nevada lawsuit time limits | NRS 11.190, NRS 11.200 | Current text, read 10/03/26 |
| 7-year credit reporting limit | 15 U.S.C. 1681c(a)(4), (b), (c) | Current text, read 10/03/26 |
Frequently asked questions
VA collections questions, answered from VA, federal and Nevada rules.
Can you get a VA loan with collections?
Often, yes. VA's rule says a collection does not have to be paid off if you are otherwise a satisfactory credit risk.
Unpaid non-medical collections still count in your monthly debts, and lenders can set stricter rules than VA.
How does VA count a collection in DTI?
An unpaid non-medical collection with no payment plan counts as 5% of the balance divided by 12, each month.
VA added the words "divided by 12" in Change 47 to its lender handbook, dated August 24, 2026. A $3,000 collection with no payment plan counts as $12.50 a month.
Do medical collections count on a VA loan?
Usually not. VA's November 20, 2023 update lets lenders leave medical collections and medical charge-offs out of the ratios and the credit review.
VA's 2023 lender training adds that this does not apply to a medical debt that became a court judgment or a lien.
Do I have to pay off a judgment for a VA loan?
Usually, yes. VA's regulation says court-ordered judgments must be paid off before a new loan is approved.
VA's handbook also allows a judgment on a repayment plan with a history of on-time payments, so ask your lender which path it will accept.
Can I get a VA loan with a defaulted federal student loan?
Not while it is in default. VA's rule blocks approval while you are behind on any federal debt.
Once the loan is brought current or put on a plan the agency accepts, you can move forward if you otherwise qualify.
Should I pay off collections before applying?
Not always. Paying removes the counted payment, but VA's rule says paying right before you apply does not change your past record.
Ask a lender how each account counts first. Judgments and late federal debts are the ones that must be handled.
Does Nevada's statute of limitations remove a collection?
No. NRS 11.190 only limits how long a creditor can sue, usually 4 or 6 years.
Credit bureaus generally keep a collection for about 7 years under federal law, and a VA lender sees what is on your report.
Is there a minimum credit score for a VA loan?
VA itself sets no minimum credit score.
Most lenders set their own, so the number you need depends on the lender you choose.
Ready to see where your credit stands for a VA loan?
Talk to a local Nevada mortgage lender about your VA eligibility and the accounts on your report. No pressure and no obligation.
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Sources
- Electronic Code of Federal Regulations, 38 CFR 36.4340, Underwriting standards, processing procedures, lender responsibility, and lender certification. Paragraphs (c), (d), (g)(1) and (g)(5). Title 38 up to date as of October 1, 2026. Read October 3, 2026.
- U.S. Department of Veterans Affairs, VA Pamphlet VAP26-7 Transmittal Sheet Change 47, KnowVA article 554400000331123, dated August 24, 2026. Chapter 4, Topic 7, subsection b, paragraph 3. Text read October 3, 2026 from a printed copy of that KnowVA article.
- U.S. Department of Veterans Affairs, VA Pamphlet 26-7, Lenders Handbook, Chapter 4, Credit Underwriting, Topic 7, Credit History (collections, judgments, re-established credit). The KnowVA chapter would not load on October 3, 2026, so the text was read in a published copy of the chapter that day.
- U.S. Department of Veterans Affairs, Veterans Benefits Administration, VA Pamphlet 26-7: Update on Collection Accounts, bulletin sent November 20, 2023. Read October 3, 2026.
- U.S. Department of Veterans Affairs, Loan Guaranty Conference 2023, Credit Underwriting, medical collection accounts slide. Read October 3, 2026.
- Cornell Law School, Legal Information Institute, 15 U.S.C. 1681c, Requirements relating to information contained in consumer reports. Subsections (a)(4), (b)(1) and (c)(1). Read October 3, 2026.
- Nevada Legislature, NRS Chapter 11, Limitation of Actions. NRS 11.190 and NRS 11.200. Read October 3, 2026.
- U.S. Department of Housing and Urban Development, Credit Alert Verification Reporting System (CAIVRS). Read October 3, 2026.
- Consumer Financial Protection Bureau, Credit reports and scores and Debt collection. Read October 3, 2026.
- AnnualCreditReport.com, the federally authorized source for free credit reports. Read October 3, 2026.
- U.S. Department of Veterans Affairs, VA home loan limits, VA.gov, which states VA does not require a minimum credit score. Read October 3, 2026.
Keep exploring
Credit
VA credit score requirements
Why lenders name different numbers when VA sets none.
Bankruptcy
VA loan after bankruptcy
Waiting periods for Chapter 7 and Chapter 13.
Foreclosure
VA loan after foreclosure
Timing and your VA benefit after a lost home.
Student loans
VA loans and student loans
How VA counts the payment once you are current.
Income
VA residual income in Nevada
The 2026 West region table, by family size.
Next step
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