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VA Mortgage Loan Uncertainty

Posted on: 29th Sep, 2008 03:19 pm
My husband is a U.S. Navy Veteran, and we have started the process of buying our first home through VA lending. Our loan package will be reviewed by underwriters this week, and we're so stressed that we will be rejected in the wake of the credit crisis. We don't have the world's greatest credit, but always pay our bills on time and we CAN afford this mortgage.

It's hard to make heads or tails about how the current economics will affect our situation. We're all hearing about how it's nearly impossible to get a mortgage without stellar credit these days. But, is this different for VA mortgages that are backed by the government? Do we still stand a chance?

Your advice and opinion is greatly appreciated.

Laura

Loan amount: $163,000
Credit scores: 710/610 (me/husband)
DTI Ratio: 65%
Liquid Assets: $17000
Gross Monthly Income: $6000/mo
Monthly Debts: $900
Hi quizpeeple !

Welcome to Forums!

As far as your credit scores are concerned they are pretty good. Lenders generally prefer people with good credit score. Moreover you have stated that you were are never late on payments which will also go in your favor. Giving loans may vary from one lender to another but I feel that you have a good chance of getting VA loans.

Feel free to ask if you have further queries.

Sussane
Posted on: 29th Sep, 2008 08:40 pm
Hi quizpeeple !

Speak to a lender and I think they will ready to offer you VA loans with the credit score both of you have. Moreover, as you have said that you were never late on payments, I think you have a chance of getting loans.

Thanks,

Jerry
Posted on: 30th Sep, 2008 04:05 am
laura, you show your debt to income ratio at 65%. that won't be acceptable to any underwriter this year.

has your loan officer given you encouragement? i would hope not, if that is the correct ratio. did you perhaps misstate it? i hope so.
Posted on: 01st Oct, 2008 07:02 am
Laura, your Debt to Income ratio is very high. Even if you recieve automated approval, the underwriter might still reject the loan.

You show you have liquid assets of $17000, and VA loans are generally 100% financing. Is there anything that you can payoff?

Propose that question to the lender before you go and pay anything off, if they come back with a denial.

VA is a great type of loan to get into. You might also want to consider removing one of you from the loan to lower the DTI. Just be careful though when considering these options, you want to make sure that you are able to handle this mortgage payment.

If you have been consistantly paying rent around the same as the mortgage that is a good sign that you can handle it.

Email me if you have any other questions.
Posted on: 01st Oct, 2008 10:13 am
tsk tsk...bad habits die hard elnora
Posted on: 01st Oct, 2008 10:15 am
I meant email me through this forum.

nothing more.
Posted on: 01st Oct, 2008 10:18 am
ok...looked suspicious...sorry.
Posted on: 01st Oct, 2008 10:44 am
The credit crisis is overblown. Even so, this has not affected VA or FHA loans since the gov't is the one lending. You should not have a problem getting approved for you loan based on the information you have provided.
Posted on: 04th Oct, 2008 09:56 pm
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