Consumer complaint received 2018-12-05 00:00:00
Product: Mortgage — VA mortgage
Issue: Applying for a mortgage or refinancing an existing mortgage — 
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: NV

Complaint narrative:
XX/XX/2018 I walked-in to the Regional VA Loan Center in XXXX and received my Certificate of Eligibility concerning my VA loan guarantee benefits. They told me that the minimum VA purchase price had to be at least {$140000.00} to be within the VA guidelines. 
I applied for loan through USAA on XX/XX/2018 for a home that I am purchasing with my VA entitlements. The home is a for-sale-by-owner in which I am doing all the work and repairs. USAA advertised no origination fees for their VA loan. and this is why I went them. Ms. XXXX was the loan officer who helped me throughout the process and took my application over the phone, she was very helpful and thorough with all the questions that I had while taking the application. ( Please see attached 1st pre-approval letter VA over {$140000.00} purchase. ) I asked Ms XXXX what could I include in the loan ( I.E. appliances, flooring, solar, pool repairs etc. ), that would help me get above the minimum {$140000.00} the VA required guaranteed amount, " she stated none of the items that I mentioned could be included on a used home purchase, the home had to be in good condition to get the loan. '' I told Ms XXXX that I would go to work on getting the purchase agreement and documents she needed for the loan as well as finish the repairs needed for appraisal. 
In early XX/XX/XXXX, I applied for a loan to consolidate my credit cards which I had used to for fixing up the house as well as lower my debt to income and finish ratio. repairs, I was denied, not for bad credit they said my credit was good USAA said my credit was too new. 
XX/XX/2018 the repairs and title paperwork on the home took longer than expected so the pre-approval expired on XX/XX/2018. 
I spoke to Ms XXXX a week before the expiration and she advised me to, " just reapply for the loan when everything was ready and at that time she also stated that " USAA could do a loan for under the VA guarantee amount of {$140000.00}. '' At the expiration of the first pre-approval I explain to Ms. XXXX that my mother was in the beginning stages of XXXX 's and she possibly would be moving in with me. ( I explained that we needed a quick close ), so that I could finish before my mother 's arrival. 
XX/XX/2018 I reapplied for a VA loan for the same house at the purchase price of {$100000.00} with just the 4 % fees paid by the seller ( see 2nd attached pre-approval letter for {$110000.00}. ) Ms XXXX submits all the paperwork this time all the documents are in as well as the {$600.00} appraisal fee. 
( See attached similar complaint against USAA, number XXXX that was supposed to be an isolated incident, dated XX/XX/2018 ) VA under  {$140000.00}. 
XX/XX/XXXX USAA underwriting contact me by phone stating that the loan had to be over {$140.00}, XXXX for me to qualify. 
A man called me from underwriting who didn't go through the normal protocol that I was accustom to concerning the verification and privacy of the call for USAA. Example being, " this call is being recorded for quality assurance. '' He said that he would check with underwriting and VA with other options. He never said that I had been denied the loan. 
Someone had dropped the ball at USAA Mortgage Department to the Underwriting Department because my approval based on the two things underwriting stated should have never made it to underwriting at all? 
I feel that I was mislead. Nearly two weeks had gone by and no one had called me before with this two challenges? 
I left a voice message with Ms XXXX for the gentleman to send me a written statement of the discussion we had over the phone ( see attachment 4. ) It was strange for me to go through all of the paperwork and almost at the end of the loan process and I am supposed to close on house by XX/XX/2018 and I am just now finding out that my net income versus gross income is a challenge? 
Mr. XXXX was the underwriter ( see attachment 5 ) that I spoke with and said that my taxes were in order and but it was the {$140000.00} minimum that was the problem. I feel that this was the escape clause for them to not do the VA loan. Mr XXXX offered to switch my loan over to a conventional FHA loan where my fees and USAA 's money made was significantly greater. ( I feel like there was a bait and switch going on with my loan and USAA procedures need to be revamped immediately. ) Mr. XXXX states in the letter that because I am self employed that underwriting could consider some the {$75000.00} gross income and someone would get back with me, ( no one ever did contact me back. ) I am not sure but I don't think that gross or net was specified on the application. I think the question ask for your monthly income which could be gross or net. 
XX/XX/2018 Contacted Mr XXXX by email concerning determination. ( No response, I checked my bank and USAA returned my {$600.00} appraisal fee. ) ( See attachment They didn't bother to let me know if underwriting would be considered any of my gross income. 
USAA should not be allowed to have any loans make it to underwriting with these basic oversights that need pointing out at the beginning of the loan process. This throw it against the wall to see if it stick I definitely not acceptable for veterans and their personal affairs! 
I feel that I wasted time and money by going through the process with USAA. 
My credit has been affected with all the inquiries and considerable time wasted and money not to be giving the loan. 
I would like all inquiries from this USAA debacle be removed from my credit reports and would like to know what recourse that I can take via an investigation through the VA Inspector Generals Office or Attorney  General for my state regarding bate and switch tactics concerning Veterans Benefits? 
In the other complaint that are similar to my complaint, USAA mentioned that the incident was isolated, I don't feel this is an isolated incident.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation