If you’re a veteran or active-duty service member in Florida and have been told you don’t qualify for a VA loan because of a “Refer” finding or lack of credit history, don’t give up. At North Star Mortgage Network, we specialize in VA manual underwriting, which allows your file to be reviewed by a real underwriter—not just a computer.

Whether you’ve had past credit challenges or limited credit depth, we’re here to make homeownership possible.

What Is VA Manual Underwriting?

VA manual underwriting comes into play when:

  • The loan receives a “Refer” recommendation from AUS
  • You’ve had a recent bankruptcy, foreclosure, or short sale
  • There’s a lack of established credit history
  • You’ve been late on a mortgage or federal debt

Rather than letting a computer make the final decision, a knowledgeable underwriter reviews your income, assets, payment history, and compensating factors to determine your ability to repay the loan.

When Is Manual Underwriting Required for VA Loans?

A VA loan may require manual underwriting if:

  • Your DTI exceeds 41% and you don’t meet the automated residual income thresholds
  • There’s been a default on federal debt
  • You’ve had more than one late mortgage payment in the last 12 months
  • Rental history cannot be verified via credit report
  • You’re recovering from bankruptcy or foreclosure

Even with these factors, you may still qualify—and we can help.

Documentation for VA Manual Underwriting

Manual underwrite files require a bit more documentation, including:

  • 24-month rental history (via landlord or canceled checks)
  • Written explanations for derogatory credit
  • Proof of income via W-2s, paystubs, or tax returns
  • Verification of employment and assets
  • Details of alimony or child support, if applicable
  • For self-employed borrowers: 2 years of tax returns or IRS-verified income

At North Star, we help you gather, organize, and present this documentation clearly and effectively.

What Are Valid Compensating Factors?

To offset risk in a manual underwriting scenario, underwriters look for compensating factors—strengths that help balance out higher debt or limited credit history.

These include:

  • High residual income
  • Minimal consumer debt
  • Excellent or improving credit
  • Long-term employment stability
  • Significant liquid assets or savings
  • Military benefits or housing allowances
  • No increase in housing expense (if refinancing)

Note: Compensating factors can’t override poor credit—but they can help push a marginal file over the finish line.

VA Manual Underwriting DTI & Residual Income

  • Standard DTI limit is 41%, but you may still qualify with higher ratios if your residual income exceeds 120% of VA guidelines.
  • Residual income accounts for things like taxes, child care, housing, and family size.

At North Star, we walk through this calculation with you and ensure your file is built to meet VA’s strict—but fair—standards.

Who Benefits from VA Manual Underwriting?

Manual underwriting can help:

  • Veterans with little or no credit history
  • Borrowers who had a past bankruptcy, foreclosure, or late payments
  • Military families with non-traditional income sources
  • Veterans with a “Refer” AUS finding

Just because a computer said “no” doesn’t mean we will.

Why Work With North Star Mortgage Network?

You’ve served our country—now let us serve you.

With over 25 years of experience and a deep understanding of VA guidelines, we don’t just push paperwork. We listen, guide, and fight for every qualified veteran to access the benefits they’ve earned.

We’re based right here in Florida, and we’re proud to offer:

  • Fast responses—even after hours and on weekends
  • Personalized file reviews for complex cases
  • Respectful service rooted in integrity and transparency

Ready to Take the Next Step?

Let’s explore whether VA manual underwriting can get you to the closing table. You’ve done your part—now we’ll do ours.

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