Need a Mortgage Loan, however I seem stuck....Any advice?

[firemartinez1980]

I will make this as short as possible and apprecite any advice and help....

My Credit Score is 600, I have 2 credit cards with super low limits and always paid in full, income is around $3500 a month, have a bankruptcy from 2012 on my credit and a charge-off for $20,000 from a car loan I didnt pay and it was a repo (Trying to settle that now).

I did 12 years in the Military so I should qualify for any military benefits and currently work as a Professional Firefighter.

Wife's credit score is 675, income is around $2000 a month and has 2 credit cards both with about $4800 owed.

We are first-time homebuyers and need a mortgage pretty fast as out current lease ends in September, However we don't have any funds for a downpayment. Do we have any options? Are there any Loans that roll downpayment into loan? Grants?

[homeloanexpert]

Hello my fellow Vet,

Based on your below scenario,  you would appear to be a perfect candidate for VA home loan. Your score are fine. FYI, my VA Underwriter would not require no open collection to be paid (like in the old days) unless they are government related, and your charge off would be totally disregarded.  Just need to write a good letter of explanation how you have recovered over the years and are now ready to take on the added responsibility of homeownership. Piece of cake!

[CreditInspired]

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@firemartinez1980 wrote:

I will make this as short as possible and apprecite any advice and help....

My Credit Score is 600, I have 2 credit cards with super low limits and always paid in full, income is around $3500 a month, have a bankruptcy from 2012 on my credit and a charge-off for $20,000 from a car loan I didnt pay and it was a repo (Trying to settle that now).

I did 12 years in the Military so I should qualify for any military benefits and currently work as a Professional Firefighter.

Wife's credit score is 675, income is around $2000 a month and has 2 credit cards both with about $4800 owed.

We are first-time homebuyers and need a mortgage pretty fast as out current lease ends in September, However we don't have any funds for a downpayment. Do we have any options? Are there any Loans that roll downpayment into loan? Grants?

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And in addition to @homeloanexpert advice, since you would go VA, there's $0 downpayment and when you submit a contract, you can ask Seller to contribute up to 6% of your closing cost. Also, because you're a firefighter, in my area there are incentives for policemen, teachers, and firefighters. That may be something to look into in your area.

On another note: It would be a good idea to submit a contract with at least $1K earnest money deposit (this shows good faith) with your contract. Amount depends on area you're in. In VA, I submitted my contract with a $3K EMD because after 2-3 contracts, I was fed up with striking out, so my last contract I made as strong as possible.

GL2U

EDIT: Found the link for firefighter, etc., homebuying assistance program

http://usehhaf.org/

[JVille]

Delete duplicate

[JVille]

You are going to need $3000 at least (minimum) to pay upfront Earnest Money, Appraisal fee and property inspections. So have a bit of money set aside so you are not caught off guard.

You WILL need your DD214 to make application.

[Anonymous]

Depending on the area you are looking at, you might try a USDA loan. It's only drawback is that it's limited to certain areas of the country to stimulate growth in those particular areas but you never know.

Ask a mortgage lender that deals with those. They are many.

[firemartinez1980]

From everything I have read though, I though you needed a Minimum of 640 score for a VA loan. Is this not correct??

[CreditInspired]

There are VA lenders who will accept 580 (and I think even lower).

[homeloanexpert]

VA does not have a minimum credit score, it's up to each lender to decide what level of risk they want to have.  My company goes down to 550 across the board on all FHA and VA, and down to 500 case by case. Other lenders may require a 620 or above.