VA loan denied by one bank, but auto approval with another

[Kimberly68]

Good morning,

I have multiple situations going on here.  I was contract before the April 30deadline and scheduled to close May 26.  The LO at a Major Bank said all was good, but right before closing I was told my 30 day late with Cap 1 was an issue. He was aware of this , since I advised him and sent documents relating to this.  Also,  I was not 30 day late with Cap 1, we have 2 vehicles with them and they applied the payments to the wrong account.  1 acct was over paid and the other was under paid.  I was not aware of this until the next month.  So, I after constant back and forth with the back Acct Manager and my Lo, I was told to wait until Aug to re-qualify.  I was told prior to moving forward with the bank , that if I receive an AA, I will be able to close, well, I advise the LO, that we may need a manual per VA, since we had a foreclosure in 2006 due to situation beyond our control.  Everything is great now and we are stable with interest.  My realtor told me that I have lost my earnest money, even though myself, her and the seller's agent have been in constant contact with the bank, and was advise ALL was good until the week prior to closing.  She said I had 8-10 days to get my money back.

Second part, I was contact by a LO from another bank and he AA me for FHA, the only problem is I will have to put 3.5% down, I rather utilize my VA but I will need a 640, and my score is now 635.  I spoke with the Acct Executive that underwrites, she advise me to send her a letter and documents related to Cap 1, which I did.  She stated as long as I am current with Cap 1 and is making payments, I am ok.(here is the false hope again) 

The other issue is, the new bank says they must count my vehicle which I owe less than 7 mths in payments.  I am looking to close mid July-early August, I will have only 4-5 mths left on my vehicle.  The same one in questioned with Cap 1. 

Finally, now I do not qualify for the tax credit, which no longer matter, but I am subject to lose my earnest money, because, I could bot qualify because of Cap 1.  All the long, we were advise everything is ok.  I did ask for a denial letter to get my money back, will this satisfy anything.  HELP IN GEORGIA

[Kimberly68]

WOW, after 72 views NO one has an opinion.  Please some one chime in.

[Anonymous]

Kimberly, we are going VA through Bank of America.  Mid score was only 623 at their last CR pull and the bottom score had fallen below 600.  We close on Tuesday.  It has been a long road, but in looking back, it was really only the frustration of re-sending bank statements, etc.  You might try them.  I think they only require a 620 for mid score.  Hopefully, one of the experts will chime in after the week end.  Best of luck to you!

[cxp2001]

I would also recommend BofA. I closed on my VA loan last week and everything went very well. I had a great Loan Processor that communicated with me all the way and my realtor was great as well. Everything came together at the end. I'm soo happy....My middle score was 650 at the last CR  pull. I read a post from Shane about Fannie Mae making changes starting June 1st, "Lenders pulling CR at Closing"..Don't know how soon this will be rolled out..Good Luck..

[Anonymous]

Did you get any documentation on the payment for the car loan being applied to the wrong account? Also, not every bank requires a 640 credit score for VA. The car loan most likely would be considered, even with a few months payments left, if it is considered a "significant" debt.

Documentation is key. I have a borrower that has a foreclosure and a judgment afterward. We were able to document the judgment was on a debt that was his ex-wifes, and he had piad a large sum to be relieved of his part of it. He is now approved.

Good luck and Thanks for Serving.

[Kimberly68]

Thanks for the response, the only documents I have are my bank statements and cancelled checks.  I pay all my bills with Bill Pay through my bank account.  I have cancelled checks from 2006 becuause this happened before with them.  This time it was 2009-Aug and Sept.  I was able to catch the Sept, but have been fighting since then to correct the Aug problem.  I have sent everything.  The other bank, that I was qualified with pre-approved me for an FHA loan, but says that I need 5 pts for VA.  The first bank gave me a pre-qual me VA with 629, now I'm at 635.