If you’re using your well-earned VA home loan benefit, you may be wondering:
Can an underwriter deny a VA loan?
The short answer is yes — but don’t let that worry you. A denial typically happens only when certain requirements aren’t met, and many of those issues can be addressed early with the right guidance. That’s where working with an experienced VA lender (like us!) can make all the difference.
Let’s take a closer look at how VA loan underwriting works and how you can avoid common pitfalls.
What Does a VA Loan Underwriter Do?
An underwriter’s job is to carefully review your loan file and determine if it meets both VA loan guidelines and your lender’s internal policies. This includes verifying your:
They’re not looking for a reason to say “no” — quite the opposite. Underwriters want to say “yes,” but they need to confirm the loan is a good fit for both the borrower and the lender.
Can a VA Loan Be Denied in Underwriting?
Yes, a VA loan can be denied during the underwriting process, usually for one of the following reasons:
1. Credit Challenges
The VA doesn’t set a minimum credit score, but a low score, recent late payments, or collections can impact your approval.
2. Unstable or Insufficient Income
Lenders need to verify that your income is steady and sufficient to cover your new mortgage plus other monthly expenses. If it doesn’t meet the VA’s residual income guidelines, that could trigger a denial.
3. High Debt-to-Income (DTI) Ratio
Your debt-to-income ratio compares your monthly debt payments to your gross monthly income. A higher DTI can make it more challenging to qualify for a VA loan, especially if there aren’t strong compensating factors like additional income or savings. During underwriting, the DTI is reviewed alongside other parts of your financial profile to determine your ability to manage a mortgage responsibly.
4. Property Issues
The home must meet the VA’s Minimum Property Requirements (MPRs) for safety and livability. If the property fails the VA appraisal and required repairs aren’t completed, the loan may not move forward.
5. Documentation Problems
Missing or incomplete paperwork — like tax returns, pay stubs, or military service records — can stall or derail the underwriting process.
What If My VA Loan Gets Denied?
First, don’t panic. A denial isn’t the end of the road — and often, it’s just a temporary setback. Here’s what you can do:
Get clear answers: Your loan officer should explain exactly why the loan was denied.
Address the issue: Whether it’s providing more documents, paying down debt, or improving credit, many problems can be solved.
Work with a VA loan specialist: Not all lenders are equally familiar with VA loans. Our team has the experience to help you move forward confidently.
How to Avoid a VA Loan Denial
The best way to avoid a denial is to be proactive and partner with a knowledgeable lender from the start. Here are some quick tips:
We’re Here to Help
At First Savings Mortgage, we’re proud to serve those who’ve served. Our experienced team understands the unique benefits of VA loans and how to navigate the underwriting process smoothly.
Whether you’re just getting started or have questions about a recent denial, we’re here to help you take the next step toward homeownership with confidence.
Have questions about your VA loan eligibility or what to expect in underwriting?
👉 Contact us today to speak with one of our VA loan specialists.
