My VA loan

[docrod82]

 Well here is my situation. I am trying to apply for a VA loan in California (community property state). In November I got pre approved on the automated UW for 175k I started the process of looking for a home only to be told that it fell thru in underwriting. I am married and my wife had aDOE loan witch had been sent to collection. We have now been doing the rehab program and have made 6 payments. My question is should I try again or wait till we are done with the rehab program.

[llecs]

Welcome!

Was the denial due to the score or was is due to the collection? 6-months' time probably wouldn't move the score too much. But also lenders have their own rules on how recent a baddie can be.

[paulbrapp]

It was probably denied due to DOE being in default.  You can not owe or be in default to the gov't by any means to use the VA loan.

[paulbrapp]

Anything thing to consider is contacting the Ombudsman for the DOE loans.  I was able to have them remove (4) 120day lates from my student loans.

Here is the link:

https://studentaid.ed.gov/repay-loans/disputes/prepare/contact-ombudsman

[christian9144]

You may have to apply for another preapproval excluding your wife.  I strongly recommend talking to your LO about your situation so they can consider your DTI, credit score, etc. 

[paulbrapp]

Community Property state....can't exclude his wife

[docrod82]

The denial was because of the student loan that was in default. Ombudsman could not help us out because it was in default for such a long time. I can't get a loan excluding my wife's debts because we are in a community property state.

[paulbrapp]

You are going to have to wait until the loans are back in good standing.  Really no way around it

[docrod82]

I kind of figured that waiting it out till it goes back in to good standing would be the best a safest idea. I was just  checking to see if any body had any experience with this situation. Thank you guys for all the great input.