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Questions about VA loan declined by VA

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I had inquired about a VA loan to refinance my house 8 months ago and was told that the VA required a two year waiting period after a deed-in-lieu before I could get approved. I waited until the two years were up and applied through a local lender in November 2011. The VA review person notified my lender last week that they declined the loan because they now want a three year waiting period after the deed-in-lieu. All else, income, credit score, debt ratio is good. They also said that they will consider only a 75% loan for me, not the 90% they state.

Questions:

1. Can the VA arbitrarily make the three year waiting decision when they are stating a two year policy?

2. Can they decide to loan only 75%, not the 90% they state?

3. Can a VA reviewer/underwriter decision be appealed in any way?

Thanks for your help!!!

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I had inquired about a VA loan to refinance my house 8 months ago and was told that the VA required a two year waiting period after a deed-in-lieu before I could get approved. I waited until the two years were up and applied through a local lender in November 2011. The VA review person notified my lender last week that they declined the loan because they now want a three year waiting period after the deed-in-lieu. All else, income, credit score, debt ratio is good. They also said that they will consider only a 75% loan for me, not the 90% they state.

Questions:

1. Can the VA arbitrarily make the three year waiting decision when they are stating a two year policy?

2. Can they decide to loan only 75%, not the 90% they state?

3. Can a VA reviewer/underwriter decision be appealed in any way?

Thanks for your help!!!

Solution - go to a larger/different VA-approved lender = different underwriter...:). It is up to the lender to set their own guidelines.

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Thanks for the reply...

The lender tried to make me think that the VA made the conditions. I guess it is easier to blame a Govt agency than your own underwriter!

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I would talk to a VA approved lender. The VA direct loan program has a bunch of hoops to jump through. The guaranteed program is much simpler and after talking to the right people I'm sure you'll have more success.

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