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VA loan with poor credit

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VA loan with poor credit

Our credit is in the mid 500's right now, but we are closing escrow next week, and will be able to pay off the overdue credit cards.   We hope to buy a new home soon, and we would like to use my husbands VA to buy a home.   We would be able to put about 40%down.   Are there VA lenders that would accept us?

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Valued Contributor

Re: VA loan with poor credit


@startallover wrote:

Our credit is in the mid 500's right now, but we are closing escrow next week, and will be able to pay off the overdue credit cards.   We hope to buy a new home soon, and we would like to use my husbands VA to buy a home.   We would be able to put about 40%down.   Are there VA lenders that would accept us?


Hi Startallover,

 

It sounds like you are selling a home, right? If so, did you have a mortgage on it & were you late on the mortgage payment in the last 12-24 months?

The reason why this question is so important is because VA recently updated their guidelines & lenders are now required to do a 24 month verification of housing history on a manual underwrite.

Now there is a good chance that we could get an approval through an automated underwriting system with that high of a down payment but the payment history on the mortgage could still cause your loan application to be denied.

 

The other possible option is if you can show the past credit issues were the result of circumstances outside of your control & that they are not likely to reoccur.

 

VA Mortgage Expert. Mortgage Banker lending in All 50 States.
VA, FHA, USDA. Jumbo, Conventional.
CAIVRS Expert.
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Community Leader
Super Contributor

Re: VA loan with poor credit


@startallover wrote:

Our credit is in the mid 500's right now, but we are closing escrow next week, and will be able to pay off the overdue credit cards.   We hope to buy a new home soon, and we would like to use my husbands VA to buy a home.   We would be able to put about 40%down.   Are there VA lenders that would accept us?


Hi and welcome to MyFICO

 

What does closing escrow next week mean? Are you selling a home and preparing to buy another one?

 

What are your and DH's 3 mortgage FICO scores?

 

When was your last late? Lenders like previous 12 months of no lates.

 

 

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