VA loan question

[Anonymous]

I am getting ready to buy a house for the first time and wanted to see what you all think. I am active duty in the Army with a transunion credit score of 642. My income is right around 85k a year. When I was in college, I messed up my credit, but since then have been in the process of fixing it. I have seen my credit score go from a 505 up to a 642 over the last couple of years. I never had any judgements or repos on my record. I have had and still do have some collections.

Is there anyone out there who, that might be able to give me a little insight on how much I might be able to get for a VA Loan? The houses I am looking at are between 250k and 300k. Between my income and my wife's (who 's credit is about like mine) our gross monthly income is around 125k. If my credit report was pulled it would show that I am current on my payments the past year on about 85% of my stuff.

With that credit score and income, what is the average amount the VA usually gives out (along with interest rate for that criteria? THANKS!! 

[Anonymous]

Hello yu12bme

Welcome to the forum. Active duty Marine here wishing you well. A very common misconception about the VA is that they give or grant loans. They do not . They do however guarantee them to the financial institution to which you apply. If you are a member of one of the credit unions that work with the military i.e. USAA or Penfed, go speak with someone in their loan department. This is not to say that they are the only institutions that offer "VA home loans". Bank of America, Wells Fargo, and the like can and do work with VA borrowers. The advantage of the "military institutions" is the frequency in which they process these transactions. I realize my post answers none of your questions, sorry about that, but I just wanted to give you a place to start. Best of luck Brother.

[Anonymous]

Hey Thanks!! I am just getting my feet wet in this and any info given will help right now. Be safe!

[gpeach]

Now there may have been people who are exceptions to the rules but below is some basic rules that most banks insist on.

Most important thing is you need to have no late payments for the last 12mths. You said 85% is current? Can you elaborate?

Generally you must have a 620 middle score. So they ignore your highest and lowest score.

Next income wise you would qualify for a loan of that amount no problem.

[gpeach]

Our interest rate was 5% on 250K. Our income is half yours but we have no other bills.

Do you have alot of debt? Student loans, car payments, credit card.............

[MarineVietVet]

Even though you are in the ARMY!!!! I will add a comment.   

I'm just giving you a hard time. I thank you for your service.

Not every lender does VA loans. I would do a search in your local area for those particular lenders and talk to them about how the process works. Then if you want to go with a national lender you'll know going in what you need.

Here in Texas the Texas Veterans Land Board finances homes and has excellent rates. I've gone through them before. You might see if your state has such a service.

Good luck to you.

From a BK years ago to:
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802
3/10 EQ- 800

You can do the same thing with hard work

Credit Scoring 101
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Credit Problems Which Is Worse?
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[MonkeyMan17]

I am currently doing a VA Loan

1) No lates last 12 months with explaination (I had a student loan late payment)

2) Debt to Income -  125k income is great unless you are paying out 70% in credit cards and car payments

3) the higher your credit scores the more the lender will let you surpass the 41% DTI by using residual income

[Anonymous]

Marinevietvet-

Very pleased, but not at all surprised TX would offer an alternative/ enhancement to the current VA home loan guarantee program. I will be returning to Texas when I retire, and will most assuredly look into this Texas Veterans Land Board option. Thanks for sharing this information.

Semper Fidelis

[MarineVietVet]

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@Anonymous wrote:

Marinevietvet-

Very pleased, but not at all surprised TX would offer an alternative/ enhancement to the current VA home loan guarantee program. I will be returning to Texas when I retire, and will most assuredly look into this Texas Veterans Land Board option. Thanks for sharing this information.

Semper Fidelis

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Glad to help. If you want to get an early start with information about the Land Board here is their site: Texas Veterans Land Board.

Semper Fi!!!

[FIRECOURAGE]

Mississippi offers something similiar through The Veterans Home Purchase Board (VHPB). Crazy rates in the 4.0 area! 

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@MarineVietVet wrote:

Even though you are in the ARMY!!!! I will add a comment.   

I'm just giving you a hard time. I thank you for your service.

Not every lender does VA loans. I would do a search in your local area for those particular lenders and talk to them about how the process works. Then if you want to go with a national lender you'll know going in what you need.

Here in Texas the Texas Veterans Land Board finances homes and has excellent rates. I've gone through them before. You might see if your state has such a service.

Good luck to you.

From a BK years ago to:
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802
3/10 EQ- 800

You can do the same thing with hard work

Credit Scoring 101
Common Abbreviations
Frequently Requested Threads
Credit Problems Which Is Worse?
Whats In Your FICO Score

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