VA Loan Disqualifiers: What Can Prevent You from Getting Approved?

You served. You followed the rules. You thought qualifying for a VA loan would be simple. But then came the dreaded denial—and no one warned you about the fine print.

This story happens more than you think. VA loan disqualifiers can sneak up on even the most qualified veterans. That’s why we’re breaking down everything that can disqualify you—and what to do about it.

Key Takeaways:

• Many VA loan denials are preventable with the right guidance.
• Common disqualifiers include credit scores, COE issues, and occupancy misunderstandings.
• Getting denied doesn’t mean you’re out of options: there are solutions and alternatives.

Reality Check: VA Loan Denials Happen (But Most Are Fixable)

A lot of VA loan applications are denied. That means thousands of veterans each year get turned away for reasons that could have been prevented.

The most common reasons:

• Your credit score is too low
• Income too inconsistent
• Issues with the Certificate of Eligibility (COE)
• Ineligible property type
• Occupancy misunderstandings

Let’s break these down.

Common VA Loan Disqualifiers (And What to Do About Them?)

1. Low Credit Score

What’s considered "too low"? While the VA itself has no minimum score, most lenders require at least a 580-620 FICO score. Some stricter lenders may demand 640+.

Pro Tip: If you’re at 580+, Be My Neighbour may still work with you. They have a flexible underwriting process that honors your unique financial story.

2. Inconsistent Income or Gig Work

You need to show a stable income for at least 2 years, especially if self-employed. Gig workers or commission-based veterans often get penalized.

Heads up: You may qualify by showing consistent deposits or contracts. A skilled VA lender can help document this properly.

3. COE Confusion

The Certificate of Eligibility (COE) is your ticket to the VA loan world. But if you:

• Have a dishonorable discharge,
• Are still on active duty without proper time served,
• Or applied with errors,

your COE could be denied or delayed.

Fix it: Use VA.gov's COE tool or let Be My Neighbour retrieve it for you.

4. Past Bankruptcy or Foreclosure

A past financial hardship isn’t always a dealbreaker. The VA typically requires:

• 2 years since Chapter 7 bankruptcy
• 12 months clean record for Chapter 13
• 2 years after foreclosure

Work with a lender who understands VA guidelines (not just overlays).

5. Ineligible Property Types

VA loans are meant for primary residences. That means:

• No vacation homes
  
• No Airbnb-only properties
• Condos must be VA-approved
  

Surprising fact: Some 2-4 unit homes do qualify—if you live in one unit.

Be My Neighbour can help you navigate this gray area.

6. Non-Occupancy Intent

VA loans require owner occupancy within 60 days. Saying you plan to rent it out or buy it for a relative can cause a quick denial.

But here's a workaround: If you plan to house hack or eventually convert to a rental after living in it, you're often safe.

From Denied to Approved: Your VA Loan Comeback

Did you get denied a VA loan because of a low credit score? You're not out of options.

With Be My Neighbour, you can:

• Boost your credit score (35+ points in just 3 months is possible)
• Get a personalized approval strategy tailored to your situation
• Close on a home—maybe even a duplex, so you can live in one unit and rent the other.

Loan denial isn’t the end. It’s just a delay. Let’s turn it around.

Not Ready to Buy a Home? Get Prepared with reAlpha—Commission-Free

Can’t qualify for a VA loan yet? You don’t have to wait on the sidelines.

reAlpha helps veterans prepare for homeownership with a commission-free buying experience when you’re ready.

• No pressure while you build credit or savings
• Skip the typical real estate agent fees
• Get expert guidance every step of the way

Start planning now, and when it’s time to buy, reAlpha makes it smoother and more affordable.

VA Loan Myths vs. Truths

What If You Got Approved Tomorrow?

Picture the moment you get the call: "You’re approved."

You sign. You get the keys. You move in. Your service is finally rewarded with a place to call home.

Don’t let red tape stop you. Be My Neighbour simplifies the VA journey.

Still not ready? Build real estate wealth the smart way with reAlpha.

FAQs

What will disqualify you from a VA loan?

‍Low credit, income instability, COE issues, non-occupancy, and ineligible property types are top disqualifiers.

Can you get a VA loan with bad credit?

Yes. Many lenders approve with scores as low as 580. The VA has no minimum credit requirement.

Can bankruptcy or foreclosure affect VA loan eligibility?

Yes, but not forever. Wait periods apply—2 years after a foreclosure or Chapter 7 bankruptcy.

Why would the VA deny a loan?

Most denials stem from lender overlays, not VA itself. Work with VA-focused lenders.

What is the easiest way to qualify for a VA loan?

Get your COE, check your credit, and work with an expert broker like Be My Neighbour.

Final Word: You’re Closer Than You Think

Most VA loan denials aren’t dead ends—they’re detours. With the right help, you can course-correct and move forward.

Talk to a VA Loan Expert – Be My Neighbour, NMLS #1743790
Explore Passive Income Options – reAlpha (Commission-Free Home-Buying)

Required Disclosures:

• This content is for educational purposes only and does not constitute financial advice.
• reAlpha is a commission-free platform for real estate investment and is not a mortgage lender.
• Be My Neighbour is a VA-approved mortgage lender. NMLS #1743790.
• All loan terms, qualifications, and conditions are subject to change and dependent on individual borrower profiles.
• Rates and programs vary by state and lender. Consult with a licensed mortgage advisor for personalized guidance.

Eligibility for VA loan benefits is determined by the U.S. Department of Veterans Affairs.