Chances of being approved for a VA LOAN

[RustyRico]

I've been working on my credit since march 2010. I went from scores in the low 400's to an FICO EQ 585 FICO EX 644 and a FICO TU 648. 100% of my bad debts are paid. I make 80k yearly. I have two cc's with no balance and a small installment loan that I'm current on. I do have a few old paid collections that's keepin my score down and they won't fall off until 2014. So what are my chances of being approved for a 225K VA loan

[YHWHUDAH]

Hey,

I think your chances are really good.  Your loan will be base on your mid score of 644, which is well above VA standards.  Your yearly income is good, so 225K is well within your means.  You have 3 open trade lines so that's good.  All your collections are paid off, so you are good to go on that.  I would suggest USAA if you have an account with them.  There current rate is 3.75 with .125 points for VA loan.  There minimum score is 620 and you can't have any unpaid collections.  However, each collection would have to have a letter of explanation. I am currently doing a VA loan with USAA my mid score was 665 and I was approved up to 250000.  My income was 58000. I had 1 open collection with a zero balance, and I had to write a letter of explanation.

I would suggest you to go ahead and get all your info together (bank statements, tax return,.Etc), and write letters of explanation for derogatory accounts and take the plunge. USAA has a program call movers advantage were they find a qualified real estate agent for you and when you close they will cut you a check.  If you purchase price is under 250K you check will be $950 and over 250K your check will be $1250.  I will get $950 deposited in my account 3 weeks after my closing.

I think your chances are above 90%

[RustyRico]

Thanks for ur reply. One more thing. I've been reading stuff about VA loans requiring 12mos clean credit history after last derogatory. My last collection/derogatory was in 2010. However I didnt pay that off until about a month ago. Should I still be worried.

[YHWHUDAH]

No, you should'nt be worried.

[RustyRico]

I got pre-approved for 230K....

thanks,,,

[YHWHUDAH]

You are welcome. Who did you choose for your lender?

[RustyRico]

Was disapproved today!!! Not really happy about it. Basically I got disapproved for a VA loan because of a current debt that I haven't paid.  Was told that VA requires one year from the last negative activity.  So I'm working to get this account completely removed from my profile. 

[IOBA]

No means "Not yet".

Keep working on your credit.   Approval will happen.