First, it's important to ask the lender/financial institution why the loan was not approved. In regards to the VA department not insuring the loan, there may be several reasons: VA entitlement (meaning the borrower has to fulfill certain service requirements to be eligible), property eligibility, owner occupancy, or income and credit.
To answer your question, your friend may be eligible for a Cal-Vet Home loan if purchasing property in California, or a no down payment loan through Navy Federal Credit Union. Service members and veterans have a multitude of programs to choose from, assuming they qualify. Your friend should explore all her options before passing up homeownership, and consult only competent lenders and real estate professionals - preferably those experienced with assisting military buyers.
I hope this information is helpful. As a fellow military veteran, I wish your friend the best of luck!
Coastal Premier Properties
5 Year Veteran of the Marine Corps
There are a few options for 100% financing. First there is a USDA loan, but it is for rural areas, so it depends on where your friend is trying to buy a home. There is also CHDAP down payment assistance programs that will give you 3% of the FHA down payment so a person only has to come up with 1/2% of the 3 1/2%. The other option is Navy Federal Credit Union has a 100% financing loan if your friend is a member or is eligible to join. I hope that helps. Have a great day.
VA does not approve or deny loans, they insure them. The lender your friend was working with is the one who can inform them why the application was denied.
V.P. Branch Manager
(858) 212-7054 Direct
(760) 331-2063 Fax
I am a local San Diego Real Estate Agent, Military Relocation Professional.
I have local San Diego Lenders who work day in and day out with VA Loans due to the high volume of military in our area.
If you would like a few contact numbers that I trust, please send me an email and I would be happy to share them with you!
Have a great day!