I had a similar disappointing experience except they initially gave me the preapproval. I told the loan officer that I received a 1099 from my employer, I provided all requested documents, as well as additional documents. They allowed me to go through to entire home buying process. I found a house, entered in a purchase contract, and had the VA appraisal conducted. Once everything went to the underwriter, they decided to make my loan inelgibile stating that the VA would require 2 years of 1099 income; however, in my case, this isn't true. VA has an exemption written into their policy (VA Pamphlet 26-7, Topic 2, Section J) that allows people with related work experience, extensive specialized training, and proof of ability to generate finances for future needs to not have 2 years of 1099 income. I even called the VA Regional Office to confirm I was on the right path. They later stated they denied my loan due to being unable to verify my income. VA reached out to them to inquire on my behalf and USAA left out that they told me the VA would require 2 years of 1099 income and proved false information to the VA to substantiate their claim. I am HIGHLY disappointed in USAA because they had all my information from the start. If my loan was going to be ineligbile, they should have never given me the preapproval and allowed me to spend money on inspections. When I reached out to them for further clarification, no one returned my emails or my phone calls. I am beyond DISAPPOINTED that an entity that prides themselves on serving veterans and their families would handle my situation the way that they did.