topic Re: VA Loan in Mortgage Loans

VA Loan

Anonymous — Mon, 01 Apr 2013 15:51:48 GMT

So my finance is a Veteran (Vietnam) and he is completing the paper work (online) for approval for this type of loan because of the overall benefits...mainly NO PMI...

My question is my Fico TU score is 653 and my FICO Equifax is 651 and his overall CS is in the 740 range. My bankruptcy is no longer showing on "public records" however I have 2 collection's items and have been paying all bills ontime and just recently paid off two major CC's. Will this mean we would get denied?

We will be putting down over 125K from our saving's. He is self employed and I am working for a new company for over 7 months now, but I have been in the same industry for over 10, prior employer I was with for 5 yrs and 5 months. My salary is 80K with 5K bonus paid out quarterly, his salary ranges anywhere from 60K to over 100K annual. I am just nervous my mistake's will hurst us in the long run. Again all my debt with the exception of the two CA is on time...

Thanks!

Re: VA Loan

Anonymous — Mon, 01 Apr 2013 18:46:57 GMT

VA doesnt have a minimum credit score, however the lender may have their own. More then likely the lender will require the collections to be paid and proof of them being paid. As long as your credit history has been clean for 2 years, and the employment is verified I dont think you will have a problem.

Thats not the hard part with VA, the appraisals you will find are so low balled its not even funny. They also require a Septic/Well/WDI inspection as well.

Re: VA Loan

Anonymous — Mon, 01 Apr 2013 20:01:18 GMT

I already cleared the one collection and will be receiving in the mail this week from the CA indicating PIF along with it stating they submitting to all credit agencies to have it removed, and working on the other collection as I type. As far as my credit history, it's ok, not perfect, meaning it shows onee credit card being 30 days late and I have utility bill that shows a few late payments...other then that nothing else of great consequence.

As for the appraisal part....we are looking at new construction do you foresee that as being low balled too....the area we are looking to buy in is a very highly sought after location....lots of new development going on and houses can't be built fast enough....Any additional insight you have is greatly appreciated.

Thanks again!

Re: VA Loan

Anonymous — Mon, 01 Apr 2013 21:04:05 GMT

The VA loans are primarily structured to be 0 down. You can pay any allowed closing costs in cash rather than have them rolled into the loan. When I bought my house under VA I don't believe the appraisal was any different because it was a VA loan rather than another funding source. The appraiser was assigned from a list of VA approved appraisers and I didn't have a choice, neither did the bank. The VA rules do state that there are only certain costs that can be charged to / paid by the veteran and the seller has to pay the others. And the housing development must also be approved by VA beforehand. Have you checked with the builder representative to be sure that the homes are VA eligible? I don't know what the process is for approval. Mine was an existing complex built in 1977.

Re: VA Loan

Anonymous — Tue, 02 Apr 2013 02:40:23 GMT

VA requirement is 12 months of clean history. When was the 30 day late? Also when did the account go into collection? You may have to do a LOE for the collection account and the 30 day late. I wouldn't recommend paying off the other collection until after speaking with a loan officer because you may be able to pay that off right before closing.

Re: VA Loan

Anonymous — Tue, 02 Apr 2013 02:41:56 GMT

also you can google VA underwriting guidelines for a clearer understanding

Re: VA Loan

Anonymous — Tue, 02 Apr 2013 15:34:53 GMT

Anything that would have been "late paying" was back in 2008 & 2011. And the account went into collection in 2011, as mentioned I did pay the one collection off and have the letter to prove that they submitted to the Credit Agencies requesting to have it removed.

Overall, I am curious based on what I have described where do I sit on the line for getting approved for loan or not. Like I said ran my fico scoring and TU was 653 and Equifax was 651 and wonder if I should even bother? Thanks!

Re: VA Loan

Anonymous — Tue, 02 Apr 2013 15:53:38 GMT

seems to be you have a good chance for approval. you can either wait for the collection to be removed or go ahead and apply now.