paid off HELOC, now is it time to buy a home? VA eligible

[Anonymous]

11 years ago I took out a Home Equity Line of Credit to pay off my stepmother's bills.  I was not on the deed but was the primary borrower.  Facing bankruptcy due to a 2016 gambling binge, I told her I could no longer make the payments which I had been doing since 2006.  She got the message and started making payments. Yesterday I checked my creditwise credit report.  Balance on loan: 0.  Paid on May 9th.  I have had no contact with her, so I don't know whether she sold the property or took out a 30 year mortgage.  Either way, I no longer have a $108,000 debt reporting.  It shows a closed account with a 0 balance.  My FAKO score dropped from 737 to 718.  FICO went up from 693 to 700 on Experien.  Other scores are 711 (May 2017 EQ FICO 9) and 702 (May 2017 TU FICO 8).  I hold 6 credit cards with a total of $60,000 credit line.  My most recent addition is a $6000 USAA American Legion American Express Card I obtained last week.  I wanted to support the cause and rejoined the Legion.  I really didn't need another card.   My other cards are NFCU cash rewards ($20,500), AMEX Blue Cash Everyday ($15,000), Chase Sapphire Reserve ($10,000), Chase Freedom ($5200) and Discover ($5000).  Maybe I should close some of them to make borrowing for a house more amenable to a creditor.

I stopped gambling on 2/21 and entered treatment for the second time in March.  I have returned to Oregon and am renting a room in someone's house.  My rental history is excellent-I just needed to find a temporary place to get me back from Arizona to Oregon.  I have a $591 car payment ($38000 balance), $215 personal loan payment ($5000 balance), no credit card debt, $7000 in my checking account, $4000 in rare coins, $4200 in net monthly disability income (VA and Social Security).  I'm 56 and never had a VA loan before.  I am eligible.  

I'm thinking about getting a manufactured home in a 55+ community in Oregon.  I'm single but have a lady friend who's interested in sharing a home with me.  We're like brother and sister.  Her income is limited and our relationship is platonic.  For now I will "rough it" as a roommate but hope to find my own place by winter.

I am a member of gamblers anonymous and AA (23 years).  I have good support here in Oregon.

Thanks for reading.  Advice welcomed.

[Revelate]

I know nothing really about VA loans and there's better people than me to answer mortgage specific questions anyway.

Couple things from your post:

• Don't close any of your cards, it's irrelevant to mortgage lending as long as you have sufficient tradelines on your report (you do).
• The rare coins I don't think count at all beyond face value unless you convert them to cash; can't advise you there and I could be wrong.
• Post how much home you're looking to buy, affordability is critical.
• The scores you list unfortunately don't have any bearing on a mortgage: the ones used there are just different; however, VA is a friendly loan product and not sure that the rate is score dependant there.

Beyond that if you have any negatives share that since some loan products will kick you out on them.

Mucho props on your progress and it sounds like you're in pretty good shape: cut extraneous expenses where you can and hoard cash for the mortgage shot... cash in hand is always a valuable asset when chasing a mortgage.

[Anonymous]

Hi Revelate,

Thanks for the response.  I learned that manufactured homes are not VA eligible, so I'm looking for a 2BD 2BA home in the 200-250K range here in Oregon where property values are skyrocketing.  I will try to sell my coins to get cash.  Coins are going up with gold but go down when interest rates go up, and they about to go up again any minute now.

I'm going to get a realtor to help me.

Thanks.

[VALoanMaster]

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@Anonymous wrote:

Hi Revelate,

Thanks for the response.  I learned that manufactured homes are not VA eligible, so I'm looking for a 2BD 2BA home in the 200-250K range here in Oregon where property values are skyrocketing.  I will try to sell my coins to get cash.  Coins are going up with gold but go down when interest rates go up, and they about to go up again any minute now.

I'm going to get a realtor to help me.

Thanks.

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Hi Buffet1193,

Congrats.

Manufactured homes ARE eligible for VA financing but there are several caveats so if you really want to go with a manufactured home, it is an option.

Most VA lenders only require a 620 or better score & typically VA is not asset driven but in some cases having 2 months mortgage payments in reserves can make a difference.

It is a good idea to have some money available to cover out of pocket expenses like your inspection, appraisal & earnest money deposit.

Based on the info you've provided, you shouldn't have any problems qualifying for a VA mortgage.

[Anonymous]

Preapproved for a $200K loan.  0% down, no funding fee.  I'm looking at a house in the morning.  It's really possible for me to own a home now.  Am I ready?  We shall see.