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The loan officer told us no, there arent any cash-reserve requirements for VA loans. We moved forward based on that. Both borrowers had excellent credit scores above 800. They also had a flawless, ten-year history of paying their debts on time. They had more than sufficient funds to cover their closing costs and down payment. They were, by most standards, well-qualified borrowers. Five days before their scheduled closing date, the loan underwriter raised a red flag and put the process on hold.
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