VA qualification question

[Anonymous]

Here is the deal, my credit scores are 740, 701 and 687.  I have one  30 day late from July 2009 and that is the only bad item on my credit report that is real.  I do have a bogus foreclosed mortgage on TU that I cannot get removed. I have filed an attoryney general complaint, police report and have a stack of documents from the lender that validate that account is not mine. I did hire an attorney and she is filing a law suite early next week. The foreclosure is from 2006. Every letter I send the creditor they claim to have never heard from me and the whole process starts over with them.  Hopefully the law suit will get their attention, but my fear this will drag out for more months.

I have zero credit card debt, a student loan with a perfect payment history and the house I am interested in my total dti would be around 27% (including student loan).  I have applied for a mortgage a couple of times this spring and was turned down so I am relucant to have someone pull my credit unless there is a good change it will go through.  I have spoken to my local credit union and usaa and they both say even with my  credit score they cannot do anything with the mortgage still on there. 

This is brutal. Is there something I have missed or will I need to wait until the case goes to court and the account is removed?  Thanks

[ShanetheMortgageMan]

You will have to disclose the lawsuit to the mortgage lender - but since you are a plaintiff and not defendant, and if there is little chance of a counter-suit, then it shouldn't become an issue.

If the only legit late is from a year ago your credit should be fine, and your DTI (including the new mortgage payment) at 27% is excellent as well.

Some lenders will have problems with the foreclosed mortgage on there, but since it was ~4 years ago, and even if the lenders don't believe it's not yours, then you should still be able to qualify for VA financing since VA just requires 2 years from a foreclosures.  Credit unions typically have more stringent mortgage requirements, not sure about USAA, thought they were very VA friendly so they would go by VA guidelines.  In either case, there are lenders out there that should be OK with this.