Best way to get approved for a VA Home loan?
Me and my girlfriend want to get a home by September. We are planning to use the VA home loan, however, we keep hitting a few issues. Details:
Credit scores: Hers high 500, mine low 700s
Work History: Hers 7 years, mine 4 months
Debt: hers 15k, mine 18k
Marriage: we plan to get married to get both our income on the loan.
The issue is I went form the military to security to Emt. But i Have only been an emt-b for a few months. We are working on her credit score by paying off old bills.
I have already obtained my certificate of eligibility from the military.
Is there a good site our company to help with getting approved for a loan.
would our best bet be to wait one more year to improve credit scores, decrease debt, and re-establish work history? Thanks for all valid and appropriate responses.
- BobLv 68 years agoFavorite Answer
Even though they ask for your work history for the past two years on a mortgage application, there is NO requirement that you have two years on your current job for income to qualify. I have worked with many borrowers who have been approved with short time jobs after finishing school or simply changing to a better position. If the current employer will confirm that your employment is likely to continue the chances of approval are excellent.
Your credit balances are not an issue on a mortgage application but the amount of the payments in relation to your income is crucial. It is possible to be approved with payments that exceed 41% of your gross monthly income, but you probably want to keep your total debt payments to that amount or lower. If you need your girlfriend's income to qualify for the home you want, you probably need to work on improving her score. VA does not have a minimum score but every lender I am aware of requires at least 620 and will only approve lower scores on an exception basis. VA will not approve a loan if you are delinquent on any Federal debt such as a student loan or a tax lien. Talk to a loan officer or credit counselor about the best ways to improve your score in the shortest amount of time. Some things may not need to be paid, or even transferring balances can make a positive difference. Paying $500 on a maxed out $1000 credit card will improve your score, while using that $500 to pay a past due medical bill probably will not.Source(s): Licensed Loan Officer in Ohio
- SudzLv 58 years ago
Rent until you can improve her credit score, decrease debt and re-establish work history, not to mention have an 9 to 12 month emergency fund (which you'll need if you buy a house for certain) and savings for the down payment, and a housing fund (because no house is perfect and you may want to paint or put a deck on the house, buy appliances and stuff like that. So waiting 2 or 3 years more will allow her score to improve, you'll be debt free (throw $1000 a month at your debt for 33 months = $33K), you will have a suitable job history and savings ($500 x 33 months=$16,500). Best of luck!
- Go with the flowLv 78 years ago
If you only worked 4 months, only her income can be used.
You need to be employed for 2 full years for income to qualify.
Girlfriend has negative collection agencies after her.
She needs to clean this up before any lender will touch her.
Get a book on credit repair or ask here for help.
If she has any credit card balances, she needs to pay them in full each month.
Carrying balances can cause serious damage to credit scores.
The debt will directly reduce the amount of home you will qualify for.
Do not use websites to apply for any loan.
Google real banks and credit unions in your area.
Get two books: Credit Repair, and Buying Our First Home for Dummies
You are a long way from getting a home.
Added note: There are some advocates that sate that VA loans should be illegal.
0% down is a horrible idea.
Just because you can finance something with 0% doesn't mean you have to do it.
- GailLv 44 years ago
Yes. If you are now on regular duty (not active duty for training), you became eligible after having served 181 days.