Shallow credit report is getting in the way of obtaining a mortgage?

sarah v: Shallow credit report is getting in the way of obtaining a mortgage?
My husband and I are currently in the market for a house. The bank pre-qualified us for $ 166,000 with the VA loan but the duplex we’ve found is $ 140,000. We submitted our loan application and were denied based on a “shallow credit history”, meaning we haven’t had credit long enough to be trusted by Navy Federal Credit Union. The credit we do have is very good. We currently have no debt. I am thinking of applying for a loan at a different bank, as advised by Navy Federal.

Would another bank approve us?

Answers and Views:

Answer by Common Sense
Probably not. VA loan qualifications are standard.

Answer by Karen
Try another Credit Union.

Answer by STEVEN F
The magic words are MANUAL UNDERWRITING. This is the old fashion method of actually LOOKING at your finances instead of just your FICO score. If your description of your credit history is accurate, you should be approved by anyone that actually applies THOUGHT to the approval process.

Note to Common Sense: Who said anything about a VA loan. Just because they applied at Navy Federal Credit Union does NOT mean they can only apply for a VA loan. Even if they qualify for a VA loan, that does not mean a VA loan is their best option.