The builder’s lender told him he had to go FHA. 🚫
This veteran and police officer, with a 90% disability rating, was building a brand-new home. The builder’s in-house lender couldn’t get his VA loan approved because his debt-to-income ratio was in the 50s, so they pushed him to FHA instead.
FHA would have meant:
❌ Monthly mortgage insurance
❌ A higher interest rate
❌ A higher monthly payment
He didn’t want that, and he shouldn’t have had to settle for it.
So we stepped in. 🇺🇸
✅ We recalculated his income correctly, because their numbers were off
✅ He met the VA residual income requirement
✅ He got approved with the VA loan he earned
The house got built, he closed at the end of September, and he’s in his home today. Next we’ll see whether a VA streamline refinance (IRRRL) makes sense to lower his rate, with no requalifying needed.
👉 A high DTI doesn’t automatically mean no on a VA loan. VA looks at residual income too, and not every lender knows how to use it.
If a builder’s lender told you “you have to go FHA or Conventional,” get a second opinion first. DM me “VA” or call 214-872-2188.
Richard Sarey | Modern Loan Advisor
Alliance Mortgage Group | NMLS #291309 | Company NMLS #292257
Equal Housing Opportunity
#VALoan #VeteranHomeBuyer #HelpingHeroesBecomeHomeowners #NewConstruction #FriscoTX #DFWRealEstate #MilitaryHomeBuyer #VAHomeLoan #FirstResponders #ResidualIncome
