VA loan question for First Time home buyer

Anonymous · ‎07-08-2008

Here's the scenario- DH - EX 759 TU 688 EQ 740 Makes 39500K yearly plus 6200 yearly VA benefits. Mine- EX 670 TU 610 EQ 633., make 49500K He has one old medical collection from 2001. I have collections totaling 5500k. They are all old credit cards DOLA 12/03 and 03/04. Of course the original Cl's were nowhere close what they are reporting as due, but such is life. The OC's are reporting zero balances/ chargeoff, but CA's have just started reporting so it looks like they are recent collections even though the original debt is over 4 years old. I have been fighting since December and have made a lot of progress, but some CA's don't participate! Perfect payment history since 06/2004 (minus the fat lot of collections reporting) No balances for me on open trade lines . Have several open accounts with good history.

I have worked my way up at the same hospitality company for the past 7 years, he has been with usps for 1 year, same field for 3 years before that, and army for 3 years before that.

Debt:

3k student loan- DH 50 min payment

16k car loan- DH 380 monthly payment

500 care credit- DH 25 monthly payment

Rent 750 per month

We'd like to do a VA loan for 170K no money down. We have 17k savings 13k in a 401k

Suntrust (local SC) says they can not approve bc of over 5K in collections, otherwise they don't care if collections are paid or not. They want me to pay "one collection" to get it below 5K. I'd rather not. ( I have accepted that I'm taking the crappy way out for not paying what I owed. ) But I would rather use the money for something more productive since the OC has written if off years ago anyway.

Countrywide prequaled us today for $175K even after seeing our CRs. The LO says his automated system tells him that "no explanations will be required for derogatory accounts" but is that for sure ? We are sending in docs for pre approval so it goes through underwriting now, but that takes up to 2 weeks apparently.

What other options do you think we have?

Thanks for your input!

Message Edited by teamllovern on 07-08-2008 02:19 PM

DallasLoanGuy · ‎07-09-2008

teamllovern wrote:

Here's the scenario- DH - EX 759 TU 688 EQ 740 Makes 39500K yearly plus 6200 yearly VA benefits. Mine- EX 670 TU 610 EQ 633., make 49500K He has one old medical collection from 2001. I have collections totaling 5500k. They are all old credit cards DOLA 12/03 and 03/04. Of course the original Cl's were nowhere close what they are reporting as due, but such is life. The OC's are reporting zero balances/ chargeoff, but CA's have just started reporting so it looks like they are recent collections even though the original debt is over 4 years old. I have been fighting since December and have made a lot of progress, but some CA's don't participate! Perfect payment history since 06/2004 (minus the fat lot of collections reporting) No balances for me on open trade lines . Have several open accounts with good history.

I have worked my way up at the same hospitality company for the past 7 years, he has been with usps for 1 year, same field for 3 years before that, and army for 3 years before that.

Debt:
3k student loan- DH 50 min payment
16k car loan- DH 380 monthly payment
500 care credit- DH 25 monthly payment

Rent 750 per month

We'd like to do a VA loan for 170K no money down. We have 17k savings 13k in a 401k

Suntrust (local SC) says they can not approve bc of over 5K in collections, otherwise they don't care if collections are paid or not. They want me to pay "one collection" to get it below 5K. I'd rather not. ( I have accepted that I'm taking the crappy way out for not paying what I owed. ) But I would rather use the money for something more productive since the OC has written if off years ago anyway.

Countrywide prequaled us today for $175K even after seeing our CRs. The LO says his automated system tells him that "no explanations will be required for derogatory accounts" but is that for sure ? We are sending in docs for pre approval so it goes through underwriting now, but that takes up to 2 weeks apparently.

What other options do you think we have?

Thanks for your input!

Message Edited by teamllovern on 07-08-2008 02:19 PM

get at least one other opinion besides countrywide.... they are notorious for coming back and changing their minds after pre-approval.

i recommend that you seek a 'mortgage banker' that can lend in your state. try to avoid 'mortgage broker' unless you can get a strong referral to one or they go into great depths why they can do your deal. do NOT go with a 'yes man'..... times are a changing and not every loan officer/lender is giving the same deal right now.

bottom line: you should NOT pay ANYTHING until after you get the mortgage. it can hurt you.

Retired Lender

Anonymous · ‎07-10-2008

Thanks. It looks like we'll be okay. I had to write a letter of explanation for BOA military, but we are checking some other options too.

Anonymous · ‎07-10-2008

hey rn,

This is OT, but what is your DH doing with USPS, and what military background did he have when he was hired? My DH's retirement date is fast approaching & he is in such a highly specialized field, there are really no job opportunities in the area he wants to retire to. I am trying to talk him into working at USPS, but he's worried he won't make enough $$.

Anonymous · ‎07-11-2008

DH was in the Army for three years and was a fuel transporter. We got lucky and he was picked off the registry for USPS after only a couple weeks. The schedule is worse than the pay, he is still on the over night stift. And you have to bid on jobs based on senority. You have to take a test and then they call you in for open jobs based on your scores. It's unionized. I think Vets with a disability get a 10 point "bonus" or preference added to their scores. So that helped too. He works in automation at the post office, processing and sorting mail for specific zip codes. He doesn't LOVE it, but it's doable and the pay is good and the benefits are GREAT.