Really

[Kimberly68]

We were told we need to put 10% down for our VA loan. This isn't our first time purchasing a home both my husband and I are veterans with clear benefits. But this is ridiculous. Never heard of this before yes we had credit challenges but we are clearing them up. My husband's mid-score is 625 and mines 586 (just paid down credit card and added 2 new ones) WOW is all I can say

[cartwrna]

Go to a different lender.

[StartingOver10]

Could be due to your credit profile and that is why the lender wants to see more money down. Remember they are using the lowest mid score to determine credit worthyness and your score is 586.  

Could be a DTI issue. What are your ratios?

Or it could be just this lender.

Find out the details before you start shopping for another lender.

[Kimberly68]

When question he stated that's what VA required. But, I added 2 cards and paid down my current credit card.

[iv]

Take a look at the VA Lenders Handbook, to see if the lender is following VA guidelines, or their own.

Because VA loans can be for the full reasonable value of the property, no downpayment is required by VA except in the following circumstances:

• If the purchase price exceeds the reasonable value of the property, a downpayment in the amount of the difference must be made in cash from the borrower’s own resources, and
• VA requires a downpayment on all GPMs.

If a veteran has less than full entitlement available, a lender may require a downpayment in order to make the veteran a loan that meets GNMA or other secondary market requirements. The “rule of thumb” for GNMA is that the VA guaranty, or a combination of VA guaranty plus downpayment and/or equity, must cover at least 25 percent of the loan.