Me and my husband were planning on buying a house maybe next year. I've been working on our credit for some time now. I know my credit score and his...Mine is in the high 500's and his in he high 400's (low i know) I'm hoping for my credit score to get to at least 630 by Dec. My husband makes more money than me so i was wondering if they would be able to use my credit and his income to qualify for a VA loan? Also i have another question...is it toughter now to get a VA home loan now than it has before or did it change due to the current economy? When we do decide to try and get a house is it better to go to a bank or a company that only does morgages?

Hi Bunza, it's great that you are planning ahead and already thinking about your credit. You mentioned where your scores are and that you're working on improving your credit. Do you know whats negatively impacting your scores now? Things like unpaid collections, high balances on credit cards, late payments are some examples.

Also, you may want to talk with a lending specialist ahead of time as well to have your expectations set appropriately. If you are a member with USAA, give them a call and talk to someone about this. The nice thing about USAA is that they won't sell you on something that doesn't make sense right now but they can spend time to help you prepare.
~Jenn

With the credit scores where they are at tells me right off the bat that there are open collection accounts as well as delinquent open accounts if any at all. You are going to be better off getting things paid off and current prior to trying to buy a house. As for what kind of lender to deal with, speak to a loan officer who understands VA lending guidelines. You will need to deal with someone who really knows what they are doing because in all likelyhood your loan will have to be maunally underwritten which means the loan officer will need to know how to assemble your file and demonstrate it easily to get it approved.

Paul
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