Approval chances

[Gettingitright22]

Current scores all just around the 620 mark, last 30 day late was 02/13 and Sallie Mae problems from years ago. Current income $3200 monthly, no credit card bills, $520 car payment.

Looking to get a VA loan in about 10 months from now. Any advice very welcome!!!

[foofighter74]

If you dont' mind me asking, why are your scores in the "620's" if you have no credit card debt? i see that you have a late payment but it was nearly a year ago.  What's holding your scores down? How many credit cards do you have and how much is the available credit?

[MorToProducer]

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@Gettingitright22 wrote:

Current scores all just around the 620 mark, last 30 day late was 02/13 and Sallie Mae problems from years ago. Current income $3200 monthly, no credit card bills, $520 car payment.

Looking to get a VA loan in about 10 months from now. Any advice very welcome!!!

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First off, thanks for your service. You may be ok, some lenders will provide a VA loan with a 620 middle Fico, but many, including us, require a 640+.  You can put $0 down and roll the VA funding fee into the loan.  If you don't have any credit cards, you need to open 2-3 now. You may find it difficult to open them, and if so, get secured credit cards (where you provide the $ for the credit line), but just make sure the company reports the data to the bureaus.  Keep the balances very low versus the limits (this is approx 30% of your Fico score model).  Other than that, keep payments on time.  You probably will be ok in 10 months, but would be better to have a lender pull your credit and review in more detail, just to be safe, make sure there are not charge offs or other issues that could be a problem.

[Gettingitright22]

I have a late from this year, Feb. Student loan is in default (just found out) will take care of ASAP and there are a couple of 60 day lates from 2009 for which I am writing GW letters, debt to income is currently high, we have credit cards with low limits but I anticipate that by Aug 2014 my credit will have greatly improved if I keep working on it. I can only hope!

[MorToProducer]

Sounds good. Reach out if you want when ready to have an application done. Happy to help.

[klondike]

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@Gettingitright22 wrote:

I have a late from this year, Feb. Student loan is in default (just found out) will take care of ASAP and there are a couple of 60 day lates from 2009 for which I am writing GW letters, debt to income is currently high, we have credit cards with low limits but I anticipate that by Aug 2014 my credit will have greatly improved if I keep working on it. I can only hope!

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Rehab the loan if you cannot pay it off or you will not be able to get pre-approved for any mortgage. Student loan issues are probably one of the biggest issues in getting a mortgage because the federal government can garnish wages or go after any property you own to settle the debt. If you rehab, it takes 9 months of payments to get out of the program and have your loan resold.

[basballguy]

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@klondike wrote:

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@Gettingitright22 wrote:

I have a late from this year, Feb. Student loan is in default (just found out) will take care of ASAP and there are a couple of 60 day lates from 2009 for which I am writing GW letters, debt to income is currently high, we have credit cards with low limits but I anticipate that by Aug 2014 my credit will have greatly improved if I keep working on it. I can only hope!

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Rehab the loan if you cannot pay it off or you will not be able to get pre-approved for any mortgage. Student loan issues are probably one of the biggest issues in getting a mortgage because the federal government can garnish wages or go after any property you own to settle the debt. If you rehab, it takes 9 months of payments to get out of the program and have your loan resold.

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Can confirm.

Sallie Mae is a $%#$% when she doesn't get her money.

[MorToProducer]

a 30 day student loan late payment will not prevent you from getting a mortgage.

[klondike]

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@MorToProducer wrote:

a 30 day student loan late payment will not prevent you from getting a mortgage.

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OP mentioned it is in default which will prevent you from getting a mortgage.

[MorToProducer]

Depends on the meaning of "default". If just a month behind and he catches up that is fine. If further than thereby be issues ..