Manual approval then denied by VA

Asked by Lisa Marquez, San Diego, CA Wed Apr 9, 2014

I have a question for a friend. She was per approved through a lender for a loan (VA). The loan was pulled for an audit. It then went to manual underwriting and was approved. They then sent the loan to the VA for final approval. Now the VA just declined it. They have not given a reason just yet. My friend can't afford a FHA loan. What options does she have?

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Christian Ga…, Agent, San Diego, CA
Thu Apr 10, 2014
Hi Lisa,

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!


Christian Gallego
Coastal Premier Properties
5 Year Veteran of the Marine Corps
BRE# 01924064
1 vote
Bryan Horn, , 92101
Thu Apr 10, 2014
Who is the lender? Industry veterans will be able to judge whether the lender is too conservative and weigh in here...
0 votes
Wade Shipman, Agent, Santee, CA
Wed Apr 9, 2014
Continue to inquire about the VA's reasoning to get a better perspective about whether this is the right time for your friend to pursue home ownership. If a prospective home owner has no savings to put towards a purchase and expects to finance 100% of the loan, there are BIG questions about whether they possess the financial responsibility to maintain the loan as well as the home expenses. A good alternative to real estate purchases for modest incomes is in manufactured home purchases. Space rents can be very low while owning your home. This can be the first responsible step into home ownership.
0 votes
Keri Carter, Agent, San Diego, CA
Wed Apr 9, 2014

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.

Keri Carter
Coldwell Banker
0 votes
Mark DeWitt, Mortgage Broker Or Lender, Carlsbad, Ca, CA
Wed Apr 9, 2014
Hi Lisa,

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.


Mark DeWitt
V.P. Branch Manager
HomeStreet Bank
(858) 212-7054 Direct
(760) 331-2063 Fax
NMLS #633211
0 votes
Sam Ibrhaim, Agent, Chula Vista, CA
Wed Apr 9, 2014
Go conventional and get a lesser home.
But you gotta find the reason for decline.
0 votes
Courtney Val…, Agent, La Jolla, CA
Wed Apr 9, 2014
Hi Lisa,

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!
0 votes
Alexander Gr…, Agent, San Jose, CA
Wed Apr 9, 2014
I would be more than happy to get her approved. If she is a veteran than there is no reason that she should be denied later on. Just send me an email if you have any further questions.

Alex Greer
Loan Officer
NMLS #1056079
0 votes
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