VA looks for compensating factors when it comes to approving a VA home loan with bad credit VA mortgage loan. Compensating factors are used to offset the negative tradelines on your credit report with other positive things about you. Here is one example. They look for clean credit for one year. Basically no collections for 30-day late payments reported on your credit report for 1 year. having re-established credit for one year shows VA that you're on the right track are you've learn the mistakes from your past.