When you apply for home financing with a VA loan, you’re increasing your chances of being able to get into a great house. While most qualified veterans are able to qualify for financing, some will end up having their loan application denied. Though it’s relatively rare, there are a few things that can influence the success of your VA loan application. Here’s what you need to know.
Your Income Matters
Whether you’re applying for home financing with traditional mortgages or VA loans, your income matters a lot. You need to be able to prove to the lender that you can afford the loan payments each month. If your VA loan application was denied, it could be because your income levels are too low. The best thing you can do is ask your lender for clarification. They’ll be able to tell you if your income was too low. If so, look for ways to increase your income if at all possible. This will increase your chances of qualifying in the future.
The Property Might Not Meet Standards
If you’re using a VA loan, the property you buy must meet certain requirements. At a minimum, the property should be in livable condition with functioning electrical and plumbing systems. If the property doesn’t pass inspection, you won’t be able to buy it. You must also be willing to use the property as your primary residence. If you’re trying to buy an investment property with a VA loan, the application will be denied.
Different Lenders Have Different Standards
VA loans are issued by individual lenders, not the VA. This means each lender is able to impose specific requirements for each borrower. If your personal credit score is too low for one lender or they deem your income too low, they’ll deny your application, but that doesn’t mean you won’t qualify for home financing at all. Try getting quotes with different lenders. They may have more flexible requirements and may be willing to issue you a loan even when your first lender denies your application.
Get Help Now
If you’re struggling to get the home financing you deserve and your VA loan applications have been denied, don’t give up hope. Reach out to our experienced home loan professionals and let us help you navigate the application process. At Mortgage Solutions Financial, we believe that everyone deserves to be able to get into the home of their dreams.