Hello,
Hoping for some helpful advice. I live in California (Sacramento area) and applied for a VA home loan last year. I was approved but only for $300,000. My credit score was in the 560s and my husband's in the very low 600s. The amount of loan I requested was $394,000. My overall credit is/was considered "poor" and there were at least 4 main debts totaling approx $20,000 that were the most questionable. I decided to clean up those debts first and try to request a home loan again this year.
My husband is a vet and will more than likely leave again for a 15 month tour by this August.

The home I was interested in has since then come down to $355,000. While I still have some outstanding debts (six credit cards of which 3 are very low balances in the $200-300 and one paid off) I am making my monthly payments and consider myself "good" overall. I've held a steady job for over 10 years now and make approx $44,000 annually. On a average year (non active duty status), my husband's income is approx $30,000. annually on average, although his jobs are random, at best.
This year I was told by First Mortgage Trust (throught the VA loan application on military.com) that I do not qualify. I'm confused as to how I was able to qualify last year for $300,000 and this year with approx $25,000 debt paid off, I do not qualify.

Sorry to be long winded but any point of direction you can provide would be a tremendous help.

thank you

Did they say why you didn't qualify for it this time?

Paul
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In the email they said it was "due to issues with my credit" and they passed me on to Correct Credit Solutions with a phone number and email. I've contacted them as well but have not heard back from either the company or the First National Mortgage people. I asked for specifics but nothing so far.

Do you have a copy of your credit report? Do you have any open collection accounts, judgements, or currently late on anything?

Paul
See my profile for contact information

Hi Paul,
No I don't have a copy of a current credit report. I went by last year's credit report and cleaned it up. I shouldn't have anything outstanding except what I owe on a truck and car (monthly payments are made and the truck will be paid off this December). I will be meeting with the realtors/brokers (of the home I'm interested in) tomorrow to discuss my interest in the home. Perhaps I should see what they say first? Like last year they did print out a copy of my credit report also.

Hi Paul,
I just heard back from First National Mortgage and they said they were willing to work with me through Credit Solutions. This company, they said, would charge me $395 total to help me clear up whatever they considered important to clear up. In the meantime, I ran my husband's and my credit report to see what exactly was still out there and there are two outstanding debts one is approx $300 and the other $168. The only other outstanding loans we have are student loans and the realtors say they don't take that into consideration. What do you think about working with a credit solution group for the amount above? Thank you again for your time and effort in this.

Save the $395 and pay the 2 collections yourself. 99% of the credit repair places are pretty much worthless. I wouldn't spend a dime on them. The only other thing you would need to pay attention to is your debt to income ratio. Also, student loans ARE counted in the debt ratio unless they are deferred for at minimum 1 year. The main problem with that is that no one can get a deferrment for a full year and being enrolled in school is no guarantee that they will be deferred for that long.

Paul
See my profile for contact information

I disagree with Paul completely. I've worked in the mortgage industry and the credit industry both.

You know nothing about your credit, and Paul is suggesting this client that knows nothing about her credit run off and pay off a couple of collection accounts. By doing this it re-ages the accounts to a current status, and this could possibly affect her score negatively and then she certainly will not qualify for a loan.
There is nothing wrong with using a credit repair company that is legitimate. Ask the right questions and make sure they are bonded.

Chances are if you were referred to this company they have a good reputation.

It's very possible that the credit repair company could have some of this negative information removed which in effect would raise your score and you could very possibly qualify for the home loan.

You will have different people offer you different advice, but if you pay off these collections your scores could drop. The thing about credit is everyone has it but no one does the research on how it works. If you have some credit issues go to the professional to help, it could save you thousonads in the end.

There are many non-profit credit counseling services. My community (Cincinnati) has a non-profit CCC. The United Way maintains a referral service.

quote:

Originally posted by judd2020:
I disagree with Paul completely. I've worked in the mortgage industry and the credit industry both.

You know nothing about your credit, and Paul is suggesting this client that knows nothing about her credit run off and pay off a couple of collection accounts. By doing this it re-ages the accounts to a current status, and this could possibly affect her score negatively and then she certainly will not qualify for a loan.
There is nothing wrong with using a credit repair company that is legitimate. Ask the right questions and make sure they are bonded.

Chances are if you were referred to this company they have a good reputation.

It's very possible that the credit repair company could have some of this negative information removed which in effect would raise your score and you could very possibly qualify for the home loan.

You will have different people offer you different advice, but if you pay off these collections your scores could drop. The thing about credit is everyone has it but no one does the research on how it works. If you have some credit issues go to the professional to help, it could save you thousonads in the end.

If it re-ages the loan to a current status, one could simply close that account, after it's paid off.

BTW, you are not one of those people who work for a PROFITABLE credit repair company, do you?

quote:

Originally posted by judd2020:
I disagree with Paul completely. I've worked in the mortgage industry and the credit industry both.

You know nothing about your credit, and Paul is suggesting this client that knows nothing about her credit run off and pay off a couple of collection accounts. By doing this it re-ages the accounts to a current status, and this could possibly affect her score negatively and then she certainly will not qualify for a loan.
There is nothing wrong with using a credit repair company that is legitimate. Ask the right questions and make sure they are bonded.

Chances are if you were referred to this company they have a good reputation.

It's very possible that the credit repair company could have some of this negative information removed which in effect would raise your score and you could very possibly qualify for the home loan.

You will have different people offer you different advice, but if you pay off these collections your scores could drop. The thing about credit is everyone has it but no one does the research on how it works. If you have some credit issues go to the professional to help, it could save you thousonads in the end.

Paying your bills is the best way to have good credit. Being current is much better than being past due or in collections. If you pay your bills people want to give you credit. If you do not pay your bills, people do not want to give you credit. Simple.

Well Judd2020, I'm going to break this down Barney style for you. VA LOANS DON'T RELY ON CREDIT SCORES!!!! Look at the basics. If someone owes money to someone else then they should pay them. If it's not paid then it is outstanding. Just like Dave said, pay bills on time = Good credit, Pay bills late = bad credit.

It's just that simple.

Also, ANY form of consumer credit counseling program is bad. If you need to enter into a lower payment arangement on a great deal of debt then file bankruptcy.

Paul
See my profile for contact information

what you need to do in my opinion is go online and request a copy of your free credit report!

It is free in the states of colorado, california cnd a few other, then sit down with someone knowledgable and go through it so you can clean it all up!

But it does not make sense that you were awarded a VA home loan then the next year they turned you down?

ever hear of the "grand father" clause?

i believe that once you are approved, then they cannot un-approve you?

I may be wrong in this matter, i am no expert, but i do remember hearing of this clause?

hey there person in sacromento!!!


Go and Apply for a : here it is:

CAL-VET HOME LOAN!!!!

IT IS A va HOME LOAN BUT THROUGH THE STATE OF CALIFORNIA,,

BAKERSFIELD HAS AN OFFICE, AND THERE ARE A FEW MORE,

LOOK UP:

http://www.cdva.ca.gov/calvet/

quote:

Originally posted by j2048b:
what you need to do in my opinion is go online and request a copy of your free credit report!

It is free in the states of colorado, california cnd a few other, then sit down with someone knowledgable and go through it so you can clean it all up!

But it does not make sense that you were awarded a VA home loan then the next year they turned you down?

ever hear of the "grand father" clause?

i believe that once you are approved, then they cannot un-approve you?

I may be wrong in this matter, i am no expert, but i do remember hearing of this clause?

A grandfather clause is a clause in legislation that allows for a behavior that is now regulated or outlawed by someone who was previously allowed to do it. If you city passed a law requiring a 100 foot set back on property and you build your house 50 feet back, you would be grandfathered.

When someone offers you a loan, they can withdraw the offer up to the closing if they find information that changes if a person meets their criteria for a loan.

This has been happening often lately. Sometimes the rules change because the market will not buy a loan. There are a lot of very rich people having problems closing home loans right now.

Thanks for the correction and education on this subject!

appreciated (not beeing an arse,) really do appreciate it!

CalVet and the Texas Veterans Programs are the best state run programs that go along with VA loans. The loans are originated through particpating lenders.

Paul
See my profile for contact information

Are there any vet programs like Calvet in Nevada?

I just checked their website and it appears that Nevada only has a property tax exemption for veterans who served in theater.

Paul
See my profile for contact information