Originally Posted by
gr8vu
I guess honesty is not the best policy.
Even with a credit score north of 800 and ability to put 20% down and a net worth 3x greater than the loan amount, Pentagon Federal Credit Union denied my mortgage loan application.
This happened when I was asked to produce military orders for my move and I responded that I was retiring to my home of record. When they ran the new numbers, my retirement pay didn't meet their 43% debt ratio based on "current" income so despite my strong credit history, no unsecured/credit debt, and ability to pay the loan for the next 30 years, they said I didn't meet their criteria.
They couldn't even consider the fact that I had written job offers this summer since they required at least 2 pay stubs to include the income in the calculations.
Should be able to get a loan from someone else but was very surprised that an organization so closely tied to the military couldn't make an exception to a situation that could impact many future vets.
Same thing happened to me with Navy Federal CU except I was trying to refinance. Same credit score and financials but they wouldn't even consider the loan without pay stubs that I couldn't get for another six months. I went as far as getting a letter from the pay department endorsed by my CO saying I was retiring honorably and stating my projected monthly pay. Still a nonstarter.
I spoke to a person that sits on their loan approval board or the like and he said their hands are tied. What really blew their mind was when I explained that the refi would lower my payment by $1K/month. They owned the existing loan so not approving the loan put me at a greater risk of not paying than approving the refi. No change in the situation but it was funny to hear him try to tap dance around that fact.
Ended up selling the house and moving. I used the Texas Veterans Land Board for my next house. Any vet buying in Texas needs to check the program out if you aren't familiar. It's a VA program that accesses different pots on money. I financed my next house 100% at 2.53%.