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VA Manual Underwriting - Credit Reporting Errors

VA Manual Underwriting – Credit Reporting Errors

VA Experience

This is another great example of VA manual underwriting heroics.

As part of our series on VA manual underwriting success stories, this story by Erick Shank really stands out as showing that Erick and his team take helping their clients very seriously.

A pattern you may have recognized through Mia’s and Jim’s stories, is that these Veterans were denied their home loan guarantee benefit by several different loan officers.  That’s a pretty crappy way to treat someone that has served.

While there are lenders that choose to not offer manual underwriting on a VA loan, the biggest hurdle is whether or not your loan officer knows how to structure the loan so that it can be approved.

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Your loan officer is either working for you, or against you.  Experience counts.  Without the experience, your loan officer will not recognize that the challenges you are having can be overcome.

Credit Reporting Errors

This story from Erick Shank is a glaring example of the shocking number of loan officers out there that do not know how to do their job.  Luckily for this Veteran, he didn’t give up.

“I recently had the opportunity to help out a Veteran who was having a very hard time getting approved for a mortgage loan.

This Veteran went to multiple lending institutions and was denied by all of them.

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The problem he was having, was that he had a foreclosure a little over two years ago, but his credit report was showing that the foreclosure was finalized less than a year and a half ago.

So, whenever he applied with a lender and explained the situation, they all turned him down because they go off of the credit report findings. I asked our Veteran to supply proof of the foreclosure dates and the transfer of ownership date, and he gladly obliged.

I took those findings to one of my lenders and had them do a manual underwrite ignoring all the findings from AUS, and they approved the loan.

Then I took those same findings to his credit reporting agencies, Experian, Equifax and TransUnion, and had the foreclosure dates updated on the bureau level so this wouldn’t happen again.

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Needless to say, our Veteran is a brand new homeowner, and in an ironic twist, he moved into his new home over memorial day weekend.”

VA Manual Underwriting Solution

Besides requiring no down payment, the ability to manually underwrite a VA loan is makes this one of the most flexible home loans available in the market to day.

When an eligible Veteran is trying to take advantage of their home loan guarantee benefit, you should not have to gamble with whether or not your loan officer has the experience to help if an issue comes up.

Even if you receive an automated underwriting approval, the requirements of that approval may require that you have to downgrade the loan to a manual underwrite.

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Hopefully you’re reading this before everting the market, and actively shopping for a lender.  If you are talking to loan officers for the first time, be sure to ask about their experience, specifically with VA manual underwriting.

If you sound like the Veteran in the story, and have been told “no”, you’re probably just looking for answers?  We can help with that too.

Getting Your Questions Answered

All lenders are not created equal.  Most of the readers that find this site because they’ve been researching solutions to challenges, and have been told 10 different things by 10 different loan officers.

We’ve created this resource to help you sift through the endless opinions and articles that may, or may not directly answer your question correctly.

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There are several ways to ask questions, and get expert opinions on this website.

  • Submit a Question:  On the bottom of this page, you’ll see a prompt that allows you to ask questions.  These questions come directly to me and are answered very quickly.
  • Leave a Comment:  Below every article is the option to leave a comment or question.  We see these comments and questions in real-time and the always answered, usually pretty quickly.

In addition to researching your questions and providing you with expert advice, I can also introduce you to a lender friend that I know has experience with your specific situation and can help.


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About the Author

Scott Schang

A 20 year veteran of the Mortgage and Real Estate industry, I am passionate about educating and empowering consumers. I have been writing about consumer protection issues, and making sense of complicated real estate and mortgage topics on this website since 2007

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