Want to get a mortgage/current car loan poor apr/ REFI OR TRADE CAR?/ mortgage chances?

[jseymour32]

Hello, I am permanent disabled vet with guaranteed income from VA & Social Security. I want to get into a home before I'm too old (39) to use my VA cert, its worth aprox 80k I think. So my choices are slim & I know that. My credit took some serious hits from the 2+ years it took to get my VA case through all the red tape & start getting paid what I should be getting paid. Im at aprox 620 by one reporting agency. VA home loan needed is a 630, So I know I can have it up the ten points I need within 6-8 month window. I am using Lexington law firm to work over my credit & it has been a big help. Nov 2012 I was a 540. I have a car that I want to get out from under because of its issues & high apr & payments. I have about 18 months left on it. Also ill be getting the car in California. My intention of moving is out of state, cars are cheaper was a thought there. So my big question is will trading in this car hurt my chances on getting into a home within the next 6-8 months? OR Should I refinance it, deal with the car ( its not a bad car, just not what we need ) trade it in on a different vehicle out of state after I get into a home????? I have a trade or refi offer from a very good place here locally. I am very new to house buying so I dont know the acronyms for a lot the buying process so please try not to throw those around too much. Thank you in advance for your help.

[webhopper]

If purchasing a new car will get your payment lower, then that would be the best option. If you will have less than 10 payments remaining on the car by the time you apply then the car payment will not count against you in your LTV.  You may be able to refi and lower the rate.  DCU is giving out awesome rates right now, so if you can try to get the interest rate into the single digits with a local credit union or DCU that would be a great place to start.

[jseymour32]

1st thank you for responding to my question. I am a neewb as the video game refernce goes when it comes to this home buying process. Can you tell me what is LTV ? & DCU is? And so I understand you correctly, I go ahead & trade this car in & get a lower APR this is a good point **** Now I have the vehicle I want with a lower apr & payments , another good point **** BUT what about the fact I am now in for longer payments since I just got out of the old car & now I am in the new one? I have approximately 18 payments currently but after I do the trade that will change. Is this a bad point or no? I am thinking since I am already in a car loan when I apply for the home loan a new/newer one with lower apr wont change much of the decision process. Ether way, new car loan or old loan I will have a loan when I apply for my home loan. Am I close to correct on this thinking? If so can you help elaborate it out for me. I have a slight TBI. Tramatic Brain Injury, causes memory & understanding issues where I really have to break stuff down some times. ........................................ After question, who would be say top lenders for home loans for someone who doesnt have best credit & is on set fixed income? Ive only heard that there is a type of loan & I thinnk its called a FHA? Thank you for your time. You have no idea how much help you are with this process for this Vet & his kids.