HELP!! VA manual underwriting guidelines on ch 7, multiple lates after bankruptcy

[Anonymous]

Here is my scenario:

- loan pre-approved refer/eligible

- first time homebuyer VA loan

- credit score: 620 (middle score)

- DTI: 40%

- 100% LTV and sellers are covering 3% closings costs
- 4K in cash reserves left over after all bills and what the mortgage will be.

- assets: 20k in 401k and thrift savings plan

- VA disabled and funding fee exempt

- filed ch. 7 bk after being medically and honorably discharged in 2017

- 2018 car accident/hit by drunk driver and injured resulting in some late payments in 2018 but all are fully paid off accounts now see more info below:

**multiple 30 day lates on my auto loan in 2018, 1 60 day late. loan is now fully paid off and closed and I got a new car with the same lender which has all on time met payments for past 13 months.** 
- all credit cards are at 0 balance, no collections, judgements, or charge offs. 

- permanent federal employee for the army for past few years (no break in any employment for 13 years)

- I now make twice what I made in the military 
- I have earnest money in escrow on the house of our dreams as the seller accepted the offer and is waiting for the appraisal 

loan is going through Carrington mortgage... waiting for underwriter approval... hopefully. I'm nervous and I don't want to lose this house for my family. We were already denied by Caliber. 

[homeloanexpert]

Hello my fellow Veteran,

Under the circumstances you detailed out, as long as your file is properly documented and you have a good letter of explanation, your loan is VERY doable. I have personally closed dozens and dozens of loans with similar circumstances over my career. You should be in good hands at Carrington, as they are a make sense lender and take lower scores. If you get denied, don't give up!

Best of luck to you!

[JVille]

I agree this is a doable situation but the letter  and back up documentation needs to be extremely well written and presented.

[Anonymous]

Thank you both for the reply. I am still in underwriting and probably won't hear back until tomorrow about the loan. I'm not going to give up though. I have scoured the internet and found dozens of other veterans with pretty similar cases who were approved for their home loans. They each had to just keep trying different lenders. 

the next lender on the list is Deephaven if Carrington says no. The letter I wrote in explanation of the lates from a couple years ago is solid. I even asked two friends of mine, one that works for the VA housing department, and another who was the VP of mortgage departments for 5/3 bank. They both said my letter is great. 

we will just have to see... I'm scared because I was already denied by Caliber though and they seem pretty lenient.