Expert Answers to Your VA Home Loan Questions & The Power of Manual Underwriting

Are you a Veteran or active-duty service member looking to use your home loan benefit in 2025? Whether you’re in Texas, Florida, California, or anywhere across the U.S., the rules for VA home loans are more flexible than many realize.

At Access Capital Group, Inc., we receive daily questions from borrowers nationwide who have been told “no” by big banks. Here are the top questions and the solutions offered by VA manual underwriting.

1. Can I get a VA loan with a 500 credit score?

Yes. While you can be approved for a VA loan with a 500 credit score, many lenders “overlay” their own strict rules requiring a 620 score. However, at LoanGoal, we specialize in VA loan manual underwriting for scores down to 500.

A manual underwrite means a human expert—not a computer—reviews your file to see if you are a responsible borrower despite a lower score.

2. What is VA Manual Underwriting and how does it work?

Manual underwriting is a secondary review process for borrowers who don’t get an “automated approval” from standard software. It is a “common-sense” approach that looks at your whole financial picture.

• Who it’s for: Veterans with lower credit (500–619), limited credit history, or resolved financial setbacks like bankruptcy.
• The Goal: To prove your ability to pay through “compensating factors” rather than just a number.

3. What are the VA manual underwriting requirements?

To qualify for a manually underwritten loan at LoanGoal.com, you generally need to meet these key benchmarks:

• 12 Months of Clean Credit: No new late payments in the last year.
• Stable Housing History: 24 months of on-time rent or mortgage payments.
• Residual Income: You must meet the VA’s region-specific residual income requirements to ensure you have enough money left over for daily life after bills.

4. How can I strengthen my VA loan application?

Underwriters look for compensating factors to offset a lower credit score:

• High Residual Income: Having significantly more leftover cash than the VA minimum.
• Cash Reserves: Having 2+ months of mortgage payments in a savings account.
• Minimal “Payment Shock”: Showing that your new mortgage payment is similar to your current rent.
• Job Stability: Two years or more of steady employment in the same field.

5. Can I use a VA loan for a fixer-upper or a manufactured home?

Borrowers frequently ask about unique properties. The VA has increased flexibility for VA loans on manufactured homes, though the home must meet Minimum Property Requirements (MPRs) for safety and habitability.

6. Is the VA loan a one-time benefit?

No. Your VA loan benefit is a lifetime entitlement. You can use it multiple times, and in some cases, you can even have two VA loans at once if you have remaining entitlement.

Nationwide Lending: Why LoanGoal?

Whether you are stationed at Fort Liberty, NC, or retiring in Scottsdale, AZ, LoanGoal provides nationwide expertise in the nuances of VA lending. We believe every Veteran deserves a fair look at their application.

Ready to see if you qualify?
Explore our VA Manual Underwriting Checklist or Apply Now to speak with a VA loan specialist today.