Getting a VA loan approved with manual underwriting.

There are two ways to get a bad credit VA mortgage loans approved. Automated Underwriting and Manual Underwriting.  With AU,  your lender will run your income your credit and assets through a program called desktop underwriting.  From that, you will get back, an approval, denial or a refer. A refer means that the loan qualifies for a VA manual underwrite approval. When qualifying for a bad credit VA home loan manual approval, the VA will look for compensating factors to compensate for your low scores and past negative credit history.  the three main compensating factors that VA looks for is. Those are....

No Late Payments or

• No Late Payments or Collections for 1 year
• Low debt to income ratio (Below 45%)
• Long-term employment
• liquid assets (Stocks, Bonds, 401k, Savings)
• Sizable down payment
• Military benefits
• 1 Year Satisfactory home ownership experience
• High residual income
• Tax credits for child care
• Tax benefits of home ownership

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