These people have good credit, but may not be able to prove they have enough income to handle the mortgage payment even though they do. The man is no longer in the military. He’s older, retired and he and his wife are on a fixed income.
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Over here, I’m the wacko that DOESN’T look the other way.

You are a mortgage person’s nightmare.
These are the situations that a helpful person says I CAN DO THAT LOAN, and 4 weeks later is “hemming and hawing” about why they can’t get it done, then everybody gets pissed off.

Loans don’t get funded by what people think they can afford. (any more!)
Even with good credit, YOU NEED TO HAVE A JOB.

Lender’s don’t lend on assets, they lend on income.
Usually VERIFIED income.

In whose opinion do they have enough money to “handle the mortgage payment” yours, theirs or the lender’s ??
Do they have any assets ?

A good credit score and $5 will get you some coffee at Starbucks.

IF they can verify their fixed income and can qualify, they can get a loan. They have passive income. It’s probably going to need to be FULL DOC.

They may need to PROVE that they have been getting their income for at laest 2 years and that it is “expected” to continue for at least 3 more years.

If any part of their income is tax free, they may get more credit for that income by “grossing it up”
Do you in fact KNOW that they don’t qualify full doc ?

And the last question that I like to ask an “agent” who tells me that they can afford the payment, even though they cannot prove it is…
Are YOU willing to be responsible for their “wacko, look-the-other-way, no down payment loan” if they cannot pay the lender OR do you just want the commission that comes from this transaction with no other obligation ????

VA may offer something. A vet deserves the help, (but ONLY if they can REALLY afford it)