Many veterans fear that one collection or a past credit issue will automatically kill their VA loan. It won't — here's why. 🇺🇸
First, your loan runs through an automated underwriting system (like DU or LPA). It checks your credit, debt, income, and history. If it comes back "refer" instead of "approve," don't panic — that's actually your chance to shine. It means a human underwriter now reviews your full story.
This is where a deployment, divorce, or temporary job loss gets a chance to be explained. Put it in writing. Show that those setbacks were temporary — not a pattern of careless spending. A strong letter of explanation, backed by proof (military orders, pay stubs), can make all the difference.
Underwriters are human. They know life happens. Give them a reason to see your current stability against past hiccups.
And if the lender still won't budge? Ask for your file to be reviewed further. It's not a guaranteed win — but don't let fear of a past credit issue stop you. You may still get approved. 💪
📲 Download my VA Loan Educator app — link in bio
Richard Sarey | NMLS #291309 | Alliance Mortgage Group NMLS #292257
