Odds of qualifying for a VA loan in early 2021

[Anonymous]

My fico score jumped 48 points this week, and I am pretty sure I will see a similar increase next week. I am hoping to get pre-approval for a VA loan early next year. If anyone can comment on getting approved after a foreclosure, I'd love to hear from you! As with most rebuilding after a financial crash, I have negative tradelines that only time and better habits will heal.

The good

- my fico mortgage mid-score is 632

- I have an income of $210,000 a year between two different full-time permanent roles

- I have three decades of experience in my field of IT

- I should have $12,000 in savings by the end of January

The bad

- I had a foreclosure just over two years ago

- I have two charge-offs from 5 years ago - Barclays for $3,200 and NFCU  for $15,050

Other obstacles include a few months of employment gaps over the past two years while working as an  IT contractor - this is the very reason I chose a permanent role. 

So with all of these factors, do I stand a chance of getting qualified in North Carolina for a VA loan? Thanks in advance for any guidance or input.

[Anonymous]

Take your saving and try to do a pay for delete on those charge offs. VA doesnt require much of a down payment although some will be needed for inspection, closing cost, and appraisal. The mortgage scores are significantly impacted by charged off credit cards that are reporting. 

[Anonymous]

Thank you! I will see if I can settle with NFCU and pay full on the Barclays. 

[RobertEG]

VA has loan approval criteria that apply to all applicants that can vary over time, and also provides for discretionary criteria that can vary depending upon the specific lendor to which you apply.

Thus, the absolute best and most reliable advice you can get is from the actual, prospective creditor that apply with.

I would begin by having an initial consultation with the lendor who you will likely apply to, and get their solid advice on what you will actually face when you do apply, and thus allow you to prepare in advance.

[OmarGB9]

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@Anonymous wrote:

Take your saving and try to do a pay for delete on those charge offs. VA doesnt require much of a down payment although some will be needed for inspection, closing cost, and appraisal. The mortgage scores are significantly impacted by charged off credit cards that are reporting. 

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I wouldn't advise OP to spend *ALL* of their savings to pay debt. Maybe half of what they have. Having a rainy day fund is always good.