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Have you served in the military for
more than 90 days? Whether you are active
duty or not, you are probably qualified to enjoy the
benefits of a VA guaranteed mortgage loan. Let the
mortgage brokers at One Stop Homes & Loans guide you
through the complex VA mortgage loan process, find you a
qualifying property, and make you a homeowner. We
work in the Greater Seattle area, from Ft. Lewis all the
way to Everett and beyond.
How does it work? The VA will analyze a borrower's past
credit performance in determining the loan for approval.
A borrower who has made timely payments for the last 12
months serves as a guide and demonstrates their
willingness to repay future credit obligations. On the
opposite side, a borrower who reflects continuous slow
payments, judgments and delinquent accounts is not a
good candidate for loan approval. We can help
determine the amount of mortgage payment you qualify
for, and set an upper limit of the home value VA is
likely to approve.
Once you have loan pre-approval, our real estate agents
can help you find the property that's just right for
you. Not every seller will accept a VA
offer. Not every property is a good candidate for
VA approval. Our experienced real estate agents
can save you time and trouble by eliminating properties
that won't sell or won't qualify for a VA loan.
Here is a list of items concerning the borrower's
credit.
LATE PAYMENTS
In circumstances not involving bankruptcy, satisfactory
credit is generally considered to be reestablished after
the veteran, or veteran and spouse, have made
satisfactory payments for 12 months after the date of
the last derogatory tradeline.
When the underwriter analyzes the borrowers credit; they
will review the overall pattern of credit behavior. A
period of past financial difficulty does not disqualify
the borrower if a good payment pattern has been
maintained since then.
Account balances reduced to judgment by a court must
either be paid in full or subject to a repayment plan
with a history of timely payments.
NO CREDIT HISTORY
In the area of credit, the lack of an established credit
history should not be a deterrent to loan approval. As
provided in the credit standards, a satisfactory payment
history on items such as rent, utilities, phone bills,
etc., may be used to establish a satisfactory credit
history.
CHAPTER 7 BANKRUPTCY
VA guidelines say you need a minimum of two years since
the discharge date of a Chapter 7 bankruptcy. A full
explanation of the bankruptcy will be required. The
borrower must also have re-established good credit,
qualify financially and have good job stability.
CHAPTER 13 BANKRUPTCY
The VA will consider a borrower still paying on a
Chapter 13 Bankruptcy if the payments to the court have
been satisfactorily made and verified for a period of
one year. In addition, the court trustee will need to
give written approval to proceed. A full explanation of
the bankruptcy will be required. The borrower must also
have re-established good credit, qualify financially and
have good job stability.
COLLECTIONS, JUDGMENTS AND
FEDERAL DEBTS
VA guidelines say that if a collection is minor in
nature, it may not need to be paid off as a condition
for loan approval. Judgments must be paid in full prior
to closing. A borrower is not eligible for the loan if
they are delinquent on any federal debt. This can
include tax liens, student loans, etc. Payment
arrangements that would bring the borrower up to date
may be considered for loan approval.
FORECLOSURE
A borrower whose previous residence or other real
property was foreclosed on or given a deed-in-lieu of
foreclosure within the previous two years since the
disposition date is generally not eligible for a VA
insured mortgage. If the foreclosure was on a VA loan,
the applicant may not have full entitlement available
for the new loan.
CONSUMER CREDIT COUNSELING
PLAN
If you as a veteran have
had adverse credit and are participating in a Consumer
Credit Counseling Plan, you may still be determined a
satisfactory credit risk if you can demonstrate 12
months' satisfactory payments and the counseling agency
approves the new credit.
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