VA revised topic 7 of chapter 4 of the Lender’s Handbook (M26-7). Topic 7, relating to credit history has been revised to add “divided by 12” at the end of the first sentence to subsection b, (Non-medical Collection Accounts), paragraph 3. Subsection b (Non-medical Collection Accounts) previously read: “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”. Subsection b (Non-medical Collection Accounts) now reads “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”. The revision went into effect August 25, 2026.

Click to view the VA Pamphlet 26-7, Revised Change 47: https://www.tenaco.com/wp-content/uploads/2026/08/VA-Pamphlet-26-7-Revised-Change-47-08-25-26.pdf