According to an article in the Huffington Post, there is a growing trend in VA home loans being denied by banks. Some say that financial institutions are discriminating against veterans.
One of the benefits of VA home loans is that they do not require a down payment and typically have more lenient credit requirements than other loans. However requirements regarding necessary repairs are stricter than other types of loans. Specifically, repairs on a home need to be completed before escrow closes in a VA deal. A VA representative stated that sometimes banks do not want to cover the costs of a repair in order to meet the requirements of a VA loan, and deny VA-backed mortgages.
Critics of the banks say that VA loans have a lower failure rate than sub-prime, FHA-insured, and prime loans so there is no viable reason to deny the loans.
Additional housing benefits are available to disabled veterans which may be based on your disability rating. If you are a disabled veteran who is fighting the VA to receive disability compensation, contact the veterans disability rights law firm of Veterans Help Group.