Home Buying in Boston>Question Details

Nataliedeliz…, Home Buyer in

VA Home loan pre-approval (not qual), but loan denied?

Asked by Nataliedelizia, Thu Oct 25, 2012

I was recently preapproved for a VA Home Loan. I selected a house, only to have my lender tell me that the loan was denied. When he input my numbers (income, reserves, etc) intot he automated system, he stated that the VA was showing the loan to be too risky.

Furthermore, the lender tried changing my income to show that I was making $10,000 a month income with $20,000 in savings, and still was getting a denial. I have a 680 (lowest of the 3) credit score and only a car payment and personal loan for debt.

Can it really be this hard to get approved for a VA loan?

Help the community by answering this question:


* Buying and owning your own home is part of the phenomena known as the American Dream. Property ownership here in these United States is emblazoned as something of a right and takes on a status like nowhere else in the world. Those with VA loan eligibility have an upper hand compared to those who don't have the VA home loan benefit and can get a piece of their own American Dream with no money down, lower closing costs and easier qualifying compared to conventional loans.
Sometimes though the dream turns a little bit scary for some and eventually a nightmare when their VA loan application is turned down. What should someone do if their VA loan application is in fact denied?

> Get the Facts

* When lenders decline a loan, they do so reluctantly. VA lenders make money by approving loans, not denying them so they'll do what they can to get your approval. When they can't, they'll send what is called an Adverse Action notice.

Click for more: http://vastreamlinemortgage.net/
2 votes Thank Flag Link Thu May 14, 2015
> Getting Pre-Approved for a VA Home Loan:-

Every year there are many veterans who use the VA Home Loan Guarantee Program to purchase a home. With this program qualified veterans can get a mortgage loan through a VA-approved lender. Some qualified veterans can obtain this loan with no down payment, low closing costs, fewer fees or a lower monthly payment than if they went to a traditional lender.

The key to purchasing a home through the VA Home Loan Guarantee Program is to get pre-approved for the program first so that you know you are eligible and exactly how much of a home you can afford.

More on the VA Loan Pre-Approval Process:

The process of getting pre-approved for a VA home loan includes:

* We help you get a Certificate of Eligibility. Before you do anything else we need to make sure that you are eligible for the VA Home Loan Guarantee Program. The Automated Certificate of Eligibility (ACE) is available on-line and your VA approved lender can get it for you within minutes. You will need to give them your service record information so make sure to contact them and see exactly what they need from you to proceed.

* Once you have a Certificate of Eligibility, you can apply for the VA Home Loan Guarantee Program. You will need to speak with our Specialists about your income, employment, debt, monthly expenses, taxes, and other personal information. If your spouse is applying for the loan with you, he or she will need to give all of their information also.

* We will help get you a pre-approval letter if you qualify for a loan. If you are eligible for a VA home loan then we will give you a pre-approval letter that shows how much of a loan you are eligible to receive so that you know the price range of homes you should begin searching in.

Getting a pre-approval for a VA Home Loan Guarantee is good for you and for the house hunting process. It helps the veteran know that they can get a home loan and for how much. It also shows real estate agents and sellers that you are serious about purchasing a home now and you can afford the price range you are searching in.
Reference Link: http://valoanguidelines.org/
2 votes Thank Flag Link Wed May 6, 2015
You may be trying to buy too much house.
Ask him for the specifics of the denial.
Is the monthly payment too high? Is it your credit score? Is it some other issue?
Then, what is the fix?
Make sure that this is an experienced loan officer.

(Please note: when you choose an answer as a Best Answer, or at least give a thumbs up, it helps those who answer questions here.)
2 votes Thank Flag Link Thu Oct 25, 2012

I would select a couple of more different lenders and see what they say. Also trying to "trick" the computer is one way of trying to pre-approved again but this all depends how savy your lender is.

If any questions give me a call and I'll be more than happy to work with you.
1 vote Thank Flag Link Sat Oct 27, 2012
I am state and federally licensed to write mortgages in 31 states, I work for a direct lender in the mortgage industry who offers conventional, FHA, VA, and USDA loans. We keep your info private not broker it out and we go down to a 550 credit score for VA and FHA loans.. Are lowest score we accept for government loans are 550 when most lenders require a 620 and brokers a 580. You have to have two years of income with a score over 550 with bankruptcies discharge date 2 years and over. We have basic guidelines and a pretty easy process. Feel free to text me or call me anytime up to 10:00pm Eastern with any questions.
Brian Young 214-797-3479
NMLS 902687
0 votes Thank Flag Link Fri Mar 4, 2016
Was prequalified for a home loan of $160,000 but have two late payments....is the VA very strict on late payments with a credit card or do you think we stand a chance? Nothing else is negative on credit report...score is 650 and also have $50,000 in investments.
Flag Sun May 1, 2016
Hi there

Without knowing more details of your situation i can't answer but i would love to speak to you about this. If it is a lender that is not familiar with VA loans they might not know how to get them approved. I specialize in VA loans and could help answer your questions
0 votes Thank Flag Link Thu Oct 25, 2012
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