Will I qualify for a home loan with charge offs

[Anonymous]

I have quite a few negative marks on my credit report stemming from a bad divorce in 2010. I have about 6 charge offs with the last one being in 2012. And I have a vehicle repossession in 2012. I have paid all of my bills on time since then and have financed a vehicle with all payments on time since 2012. I reapplied for credit cards in 2013 and have paid them all on time. My credit scores are now 643-668 from all three bureaus. I would like to apply for a VA home this year, I am active duty with an annual income of 84,500.. I also work a second job that pays about 16,000 annually on top of that. Current debt: 30k car, 2500 credit cards, 32k student loans, total: 64,500
I am looking to finance a home around 200-225k
Would I have trouble qualifying with VA?

[Anonymous]

Most likely no. You have too much current debt  coupled with bad credit.   

[Anonymous]

What if you paid your credit cards off (only $2500) (could get you a score bump), and sold your car and paid cash for a oldie but goodie for like 4k or so....then you would eliminate those payments and just show owing only your student loan? Your ratios would be better.  Have you talked with a VA mortgage loan person? Don't get discouraged as there are many good VA loan options!

[Anonymous]

Also check out the Rebuilding forum and see how you can work on getting those charge offs removed from your credit report (I just got two off my reports by writing goodwill letters and asking).  Put a patriotic spin on your letter - seemed to work for me.

[Anonymous]

I agree with Hammer. Your debt is simply too high. You may be able to be approved if all the charge offs are 3+ years old and paid, but it doesn't sound like a good financial move.

If there is money owed on the charge offs, you probably wouldn't be approved. Paying off existing debt would be a good first step.

[Anonymous]

Don't get the mortgage now.  Work on the charge offs and get your debt down. As some have already said above, the rebuilding section has a wealth of info. to help you.

[cartwrna]

The answer to CAN YOU get a VA loan, technically probably so. Should you though, that's a question of whether or not you can financially afford it. I make 65k a year, have $3,700 in CC debt and 61k in vehicle debt between 2 cars and a motorcycle. I am currently getting a conventional mortgage and looks like I'll make it through. I am buying a substantially less priced home though at 100k. My credit only has one collection from 2013 paid in full, and one only on Experian for $68. My mid mortgage score was a 683.

[cartwrna]

My DTI comes in with all the payments at 35% back end. Front end is only 14%.

[cartwrna]

YMMV