VA FAQ #11 Can I get a VA Home Loan if another VA Lender has denied my VA Loan?
The answer is possibly. There are many reasons why VA home buyers can be denied for home loans, some of those reasons can be overcome by working with an experienced VA Lender such as VanDyk Mortgage.
We understand that not all situations are alike, your situation is unique, and that your VA Loan is worthy of a second look to see if you may qualify for a new VA or VA Jumbo Home Loan.
Many Lenders turn down VA and VA Jumbo Loans based on their lack of experience with VA Loans, Lender overlays and tight Risk Tolerance for the Lender, lack of access to the correct investors to back your new VA Loan and it's unique needs, or even just plain incompetence regarding how to Structure and Underwrite VA & VA Jumbo Loans.
While we cannot Approve every single person who was turned down by another Lender, we have found that many Veterans were actually qualified and just needed to find the right combination of Loan Officer and Lender to get into a home using their VA Home Loan benefit.
The most common reasons that we are able to Approve Veterans who were turned down by other Lenders are:
- Bankruptcy under 7 years - we only require 24 months, even for VA Jumbo or VA High Balance loans all the way to $1.5m. (proper credit is required to be re-established post BK discharge)
- Foreclosure under 7 years - we only require 24 months, even for VA Jumbo or VA High Balance loans up to $1.5m. (proper credit is required to be re-established post Foreclosure, and foreclosure must not have been a VA Loan)
- Prior Short Sale - we only require 24 months if late on Mortgage Payments prior to Short Sale, Some cases even less than 24 months if and no waiting period if not late on Mortgage Payments prior to Short Sale date (and loan Short Sold was not VA) even for VA Jumbo and VA High Balance loans up to $1.5m.
- The Purchase price exceeds the County VA Loan Limit - some VA Lenders do not allow this, we do. VanDyk Mortgage allows you to exceed your County VA Loan Limits with an appropriate down payment or equity in your home, usually 25% of the amount over the VA Loan Limit for your area.
- Lender required too much down payment when exceeding the County VA Loan Limit. This amount is typically 25% of the amount that exceeds your county limit. However certain big banks require the entire amount that exceeds the County VA Loan Limit as down payment. Again, we require 25% of the overage. (plus 25% of the VA Funding Fee if applicable). Example - Sacramento County - 2017 VA Loan Limit is $488,750, for a $588,750 home purchase in Sacramento, El Dorado, Placer or Yolo county, we would require a $25K down payment.
- Bank is not able to calculate income correctly for Self Employed Borrowers, or those with Investment properties. We are very experienced in calculating income for these scenarios, let us help you determine your effective, usable income for VA Loan Qualification.
- Joint VA Loan - Veteran plus a non-veteran (not spouse). We allow these, call for details.
- 2-4 unit home - we allow these up to the full $1.5m limit. Most banks and VA Lenders do not.
We have helped many Veterans Purchase and Refinance homes that were turned down by other Lenders and Banks. Please don't give up, give us a call to see if we can help. 866-900-2342, ask for Brian Skaar.
If you have questions about your particular scenario, please do not hesitate to give us a call, we are here to help - 866-900-2342 toll free.
This is part 11 of our VA FAQ series for Frequently Asked VA Loan Questions. FAQ = Frequently Asked Questions, and when it comes to VA & VA Jumbo Loans, we get plenty of questions and we have the answers for you. We have been making VA Loans since 1987 and are a Direct Lender offering both VA Loans and VA Jumbo Loans for the Purchase or Refinance of your Primary Home. Please give us a call to get help with your VA Loan or VA Jumbo Loan questions, and see if you qualify for a VA Home Mortgage - 866-900-2342 toll free direct, or contact us online at VanDykFunding.com. We offer VA Loans, VA Jumbo Loans (aka VA High Balance Loans) for purchase, refinance and VA IRRRL streamline thoughout our service area: California, Georgia, Indiana, Massachusetts, Michigan, Virginia, Washington and Wyoming. Give us a call to get started today - 760-752-4480