VA manual underwriting and second looks
When a VA loan gets manually underwritten, what the underwriter looks at, and how a second look can help if another lender said no.
Written by the FLO Mortgage team · Licensed mortgage broker, NMLS #1835856 · Updated October 2026
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At a glance
- Used when automated approval isn't possible
- No VA minimum credit score
- Residual income carries real weight
- Lender guidelines vary
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Manual underwriting
Most VA loans are approved with the help of an automated underwriting system. When that system can't give an approval, for example because of thin credit, past credit problems or a higher debt-to-income ratio, a VA loan can sometimes still be approved through manual underwriting, where an experienced underwriter reviews the whole file.
When manual underwriting is used
- The automated system returns a 'Refer' instead of an approval
- You have little or no traditional credit history
- Recent credit events need a closer look, such as a past bankruptcy
- The file needs explanations an automated system can't weigh
What the underwriter looks at
A manual review looks at the full picture: how you've handled payments over the past year, stability of income, cash reserves, and especially residual income. When the debt-to-income ratio is above 41%, the VA generally wants residual income to exceed the minimum by about 20%, along with other strengths like reserves, long job history or a minimal increase in housing payment.
If you don't have credit scores, lenders can sometimes build a nontraditional credit history from rent, utility and insurance payments.
Why a second look matters
The VA sets the program rules, but each lender adds its own requirements, called overlays. One lender may have a higher credit score floor or may not manually underwrite at all, while another will. As a mortgage broker, FLO Mortgage can look for a VA-approved wholesale lender whose guidelines fit your file.
Questions, answered
Is there a minimum credit score for a VA loan?
The VA does not set one. Lenders set their own minimums, and they vary, which is why a second look can help.
What is VA manual underwriting?
It's a full review of your file by an underwriter when automated approval isn't available. It weighs payment history, income stability, reserves and residual income.
Can I get a VA loan with a high debt-to-income ratio?
Possibly. The VA has no maximum DTI. Above 41%, lenders look for strong residual income and other compensating factors.
Can I get a VA loan with no credit score?
Some lenders can build nontraditional credit from rent, utilities and other payment history and manually underwrite the loan.
Does manual underwriting take longer?
Usually a bit, because more documentation is reviewed. Getting documents in quickly helps.
More answers in the VA Answer Center.
More VA loan guides
- VA home loans overview
- VA loan questions, answered
- VA loan tools and calculators
- VA home buying roadmap
- VA loans for first-time buyers
- VA loans for active duty
- VA loans for Guard and Reserve
- VA appraisals and property requirements
- VA closing costs and seller concessions
- VA occupancy rules
- VA entitlement and second VA loans
- Assumable VA loans
- VA condos and property types
- Disabled veteran property tax exemptions
- VA streamline refinance (IRRRL)
- VA cash-out refinance
- VA funding fee exemption
- VA loans for surviving spouses
- VA residual income explained
- VA loans after bankruptcy or foreclosure
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Every FLO loan officer helps veterans, service members and military families with VA loans. Have a question these guides don't answer? Ask our team.
This is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines, property eligibility and program availability. Lender requirements may be stricter than the program guidelines described here. Not all applicants will qualify. Figures reflect 2026 VA guidelines and may change without notice. FLO Mortgage is licensed in Florida, Georgia, Michigan, North Carolina, Tennessee and Texas. Company NMLS #1835856. Equal Housing Opportunity. FLO Mortgage is not affiliated with or endorsed by the U.S. Department of Veterans Affairs or any government agency. Licensing & Disclosures.
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