VA Home Loan, how do we look?

samy2576 · ‎05-17-2016

Hello,

My husband and I are interested in a 250k VA home loan. He is a veteran, 70% disability. Currently employed and makes 43k a year plus 12k a year in retirement benefits. His credit score is 615. He has no car payment, maybe $150/ month in other payments.

My income is around 24k a year, 650 credit score. I have about $350/ month in payments like for my car and things. Neither of us have owned a home before.

We are looking to buy in the next 2 years with a 10k down payment. What should we do to improve our chances, interest rate, etc?

Anonymous · ‎05-17-2016

Hello here is my senerio I am looking to close on my new home using the VA home loan on May 31st I got my commitment letter yesterday just waiting on my CTC I also may have them run my credit to get a lower intrest rate I am at 3.875% on 175,990 mortage no money down all closing paid except move in is $1...my LO told me if my scores improve to 680 or better b4 closing we can do it and I am waiting for equifax to update my recent scores are in my siggy..now that I got that out the way this is how I applied.....

I went with Veterans United got my fico scores EQ at that time was 654 TU 659 EX 638 they went with EQ 654 I was fresh from rebuilding no real credit except for being an AU on my ex cc. and co-signer on my current vehicle which the payment is $565 and the credit card balance at that time was $1396 with a $34 monthly payment I had 3 baddies that have falling off since applying. I am 100% disabled so I'm just collecting my military disability which they rounded up to $3750 they did not include my GI bill money I was pre approved for 200k by myself I started this process April 11th put an went under contract on April 19th and on track to close May 31st I think you guys are pretty good to go I think with the VA long as your scores are 620 and above and your debt to income ratio is good and you have a stable income u will have no problem getting approve so hubby has to get that 615 to at least 620......hope that help and if u have any other questions feel free to ask

Anonymous · ‎05-17-2016

Your debt to income ratio seems fine and you could get a loan now even with your husbands score at 615. The rate won't be as good but it is still possible. If he can get his score to a 640 then the rate would improve. What is the reason for the down payment? You don't need one with VA and since your husband is disabled the funding fee would be waived. I know you said you all would be looking to buy in a couple years but VA has a great refinance program you all could to get your rate down as soon as his score got to a 640 or higher. Just something to keep in mind. If you can work in the seller to pay closing costs in your contract you all wouldn't have to bring any money to closing. Also when you have your credit pulled by a lender they will be able to tell if there is anything that can be done easily to get your husbands score up quickly. If you have any questions let me know.

Anonymous · ‎05-17-2016

@samy2576 wrote:
Hello,
My husband and I are interested in a 250k VA home loan. He is a veteran, 70% disability. Currently employed and makes 43k a year plus 12k a year in retirement benefits. His credit score is 615. He has no car payment, maybe $150/ month in other payments.
My income is around 24k a year, 650 credit score. I have about $350/ month in payments like for my car and things. Neither of us have owned a home before.

We are looking to buy in the next 2 years with a 10k down payment. What should we do to improve our chances, interest rate, etc?

It would be hard to say since we don't know what all is in your credit report that may be keeping your scores down.

But since you're 2 years away from buying you have plenty of time to bring your scores up.

Best of luck!