I have poor credit and am a 10 year Navy veteran. I am tired of paying almost $1200 a month in rent and having nothing to show for it. I do make almost $70K a year and I am able to sustain a mortgage payment. At these rental rates I have been unable to save any money for a down payment and am looking to find out if I can secure a VA home loan with 0 down and poor credit. Any suggestions/recommendation are greatly appreciated.
Yes. The VA loan will cover 100% of the purchase price and the seller can pay the closing costs for you making it where you have nothing out of pocket to buy a house. When you say poor credit exactly what do you mean? VA has a lot of flexibility when it comes to credit but there are some things that VA won't let go without prior resolution.
Originally posted by semptech: I have poor credit and am a 10 year Navy veteran. I am tired of paying almost $1200 a month in rent and having nothing to show for it. I do make almost $70K a year and I am able to sustain a mortgage payment. At these rental rates I have been unable to save any money for a down payment and am looking to find out if I can secure a VA home loan with 0 down and poor credit. Any suggestions/recommendation are greatly appreciated.
I had poor credit now cause i am disably I had work hard all my wife. I lost my wife in 2000 I work till 2005 went they lay me off for health reason, so i got behide i had no income this credit card company willnot work with, well i findaly got on ssd i only made $1315 monthly i want to had a 27 ft. trailor and truck i want to travel some
Financing a truck and trailer is not an option for the VA loan. You may want to talk to the dealership and see if they have a lender that they can get you financed with.
I have pretty poor credit, but my husbands credit is spotless. If we use a VA loan to buy a home, can it only be put in his name to save us some on the interest rate? I'm a SAHM, so all the income is his, anyway. please advise!
If he is the veteran then yes. Your monthly liabilities will be considered in the debt to income ratio but the derogatory accounts will not be held against you.
I am an active duty E6 in the Army. I made some bad mistakes in the past which really affected my credit. I have been doing good working on improving my credit for the last three years but still have ways to go. My credit rating is in the mid 500's, but what really hurts me is all the collection accounts that I have. I have been thinking about the possibility of buying a home since I would end up saving money when compared to paying rent. Do you think that I would be able to qualify for a loan. If not, can you give me some guidance as to what steps I should take to put me in a position where I can buy a home. Thank you.
Obviously the biggest thing is getting the collections cleared up and making sure that all of your open and active tradelines stay current. With older collection accounts you have a little bit of wiggle room but not a lot. How much do they total?
My wife and I are looking to purchase a home at Ft. Hood using my VA loan. The problem comes with my poor credit. Her credit is pretty much perfect. Will my poor credit negatively affect use in terms of being approved for a loan. My credit issues were mainly from late credit cards payments and collections of which have since been paid off. We each make around $45,000 and are looking to purchase a home around %150,000. Please let me know what you think. Thanks.
You might be ok if you've already paid everything off. It may take a few days of getting your credit report updated but aside from that it doesn't sound like it would be difficult.
I have been talking to some lenders about how my poor credit (score in low/mid 500) will work with a VA loan. I have some older collection accounts from when i got divorced (3-4 yrs old, some older) that were joint accounts that should have been paid by my ex. after getting out of the navy in 06 money has been tight, and i could not pay any more on accounts he was supposed to pay off. subsiquently they are collections. the lender told me i shouldnt bother trying to pay the old ones now, as the negative effect is not going to really change my credit score much. he said i should save my money and just write a letter explaining the issues with the old collections, and proof of my income now. i only have 4 collection accounts all of which are from 03/04 or later. i am 70% disabled and me and my fiance 100% disabled want to buy a home together. (he has same issues with late payments/charge offs as he was med discharged in july 07 and has only just started recieving VA disability, so alot of the Credit cards became delinquent and were turned in as charge offs all together he has 3 accounts one is being paid by disability insurance, one was a charge off for 550.00 and one has late payment history since sept 07 and he owes 3,000 visa card account) since everything has happened (my divorce/ his disability) we have not opened any new credit accounts, and have filed disability payment claims on the accounts that are covered (the ones that are not for him are the ones that were turned in as charge offs) so we are really wondering if the info is correct. should we pay the old collections/charge off accounts off, or do what the lender said and write a letter explaining the issues, and that it was a one time thing...just a little confused and really need the bottom line. we were hoping to get pre-approved and buy in the next 6-9 months..so no real rush thanks
No matter what, you will have to write a letter explaining what happened with each of the accounts. If your ex was responsible for them then you will need to also provide a copy of your divorce decree showing that to the underwriter. Medical reasons are, in general, acceptable for getting around on manually underwritten VA loans. Your husbands visa card is likely to be the one that gives you the most trouble. Is it in a collection status or is it just behind on payments? Get it caught up or paid off first then tackle everything else. Otherwise, it sounds like you are in good shape.
no we dont have the extra money to pay the account off. we have asked for a payment plan, but they dont want to work with us. as of right now the account is set to be charged off before we get the money from the va to pay it. (next 3-5 months) they have refused to negotiate late fees and intrest charges, concidering we explained it all in aug 07 when he was discharged and every month since. and wont accept anything but the full payments which are now 300.00 behind with min payments of 50 a month. so the account will deffinatly be charged off before we get the money to pay it. the card is through pacific marine credit union. should we still pay it off it they send it to charge off when we get the money? they have no plans to send it to an outside collection agency or to offer a settlement.
Keep paying on it because the amount will only go up if you stop paying. Just do what you can to get it taken care of. The account going to a collection agency is the last thing you want.
I join the California National Guard last month and going to BCT next year of 2009. I'm thinking of buying a home. do I have to be in BCT before I qualify for the VA program. I make like 70,000 a year in my regular job. credit score in the 690's and I live here in Los Angeles.
