Vet with short sale needs VA loan.....no luck

[Vet_with_MS]

I am  60 year old Navy vet who just can't seem to get a VA loan. My scores are TU603 EX618 and EQ587. Due to fracturing my spine, I had to do a short sale almost 3 years ago on my home so I could get to the hospital in town every day. The short sale went well but I had to retire from the federal government early which left me in a much lower income bracket. I also had a repo in 2010 and the creditor keeps reporting it like it was last month. I was much to my surprise pre-qualified by Waterstone Mtg. for 130000. After looking at homes, I found a great one for $102500. Now that a contract was signed a month ago, Waterdtone says they can't get me a VA loan. I am on a government pension of $3200 a month and I now pay $850 a month for rent. I called around and all the other brokers said the repo and sub 620 score was killing me.......although their high score was 647 and the low score was lower than FICO reported. I am 60 years old and have multiple sclerosis as well as having a spine that looks like a science project. I know that this will be the last home I live in, so I want to get moving. What can I do?

exfed2011@gmail.com

[Anonymous]

Hi Vet, First off, thank you for serving our country! As far as your credit score, it seems like you are not too far off from where you need to be. Do you have any credit cards with high balances that can be paid down? That is the quickest way to boost a credit score. For the repo, what does it show on the credit report? Paid in full? Deficiency balance (meaning that it was sold for less than you owed)?

[Vet_with_MS]

My credit report shows that my credit cards are being over used, yet my two cards have a zero balance on  them. The repo is still a repo and they report it as such every month since they took it in 2009. I am hoping they update soon. They car that was reposessed is still accruing intrest and is now $4200 vice $2400

[Anonymous]

Are there any other derogatory items besides the short sale and repo? And you are saying both credit cards are at 0% utilization, but report being "over used"? Did you just pay them down recently?

[Vet_with_MS]

They are paid the day the purchase is made. There was a balance 2 weeks ago, but now there is nothing. I sent copies of my statements to the broker, but the underwriter did not care. Other than the short sale and repo, I have no issues.

[Anonymous]

In regards to credit, you could get a small boost by letting one of your cards report at 1-9% utilization and the other left at zero. As far as the repo, you have three options: 1. Ask your lender if they can move forward if you pay off the repo....... 2. Call around to other lenders and see if they'd be able to help even with the unpaid repo....... 3. Let the repo fall off your credit report (supposed to be 7 years from the original date of delinquency, but I've seen credit reports misbehave plenty of times).