LUKE AIR FORCE BASE REAL ESTATE VA LOANS WITH CREDIT CHALLENGES
Many Americans today are facing some sort of credit challenges and the banks are looking at peoples FICO scores more closely. They want to know your credit history in more detail. They want you to explain late payments along with other negative items on the credit report. VA will review a borrower's past credit performance in determining the loan for approval. They are looking for borrowers who have made payments on time for the last twelve months. That is the magic number. This shows that this person is worthy of having a mortgage to pay future debts. However, people with negative credit such as judgments, liens and charge offs is not a great candidate for a VA loan.
Here is a list of areas on one's credit report:
I HAVE LATE MORTGAGE PAYMENTS
My parents instilled in me to pay my bills on time with no questions asked. So, I pay my bills on time. I am teaching my children to do the same. I never miss a mortgage payment. There are no exceptions on this payments. A person showing great mortgage payments is a great mortgage candidate in great standing. However, an underwrite will look over the file in more details when there has been a mortgage late payment. However, the underwriter is looking for twelve consecutive payments after the deragatory date. We all have periods of our life when we have credit challenges. I believe it is called life and the underwriter understands at times if explained the correct way.
I HAVE A CHAPTER 7 BANKRUPTCY
A borrower is elegible for a VA loan after two years of the discharge date and not the filing date. We had a borrower call the VA loan with this same scenario. He will be fully approved after 3/12/2010 under these guidelines. The borrower will have to explain in detail about the bankruptcy.
I HAVE NO CREDIT SCORE
A borrower will need to provide payment history on rent, utilities, cell phone bills etc. The underwriter wants a history of on time payments to show credit worthiness to repay back the loan.
I HAVE A CHAPTER 7 BANKRUPTCY
The VA guidelines state that a minimum of two years must elapse since the discharge date of the borrower and / or spouse's Chapter 7 bankruptcy, not the filing date. 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.
I HAVE A CHAPTER 13 BANKRUPTCY
Yes, one can still obtain a VA loan as long as the borrower is still paying on time for one year or more. One cannot be late with payments. Yes, you will have to explain the bankruptcy at this time. Plus, the borrower must have establised trade lines to obtain approval.
I HAVE A FORECLOSURE
One must wait two years before they purchase a primary residence under the VA loan.
I HAVE COLLECTIONS AND JUDGMENTS
This is up to the underwrite when it comes to this section. Some collections and judgements must be paid off.
We have formed a strategic partnership with Praxis Credit Consulting to assist people in restoring their credit score to be in position to obtain conventional financing. Yes, one can do it yourself. However, there are times when it is best to hire a professional. Just tell them Harry sent you and they will take care of you. They are people that want you to be successful. Real estate is a team sport.
PLEASE VISIT OUR WEB SITED WHEN IT COMES TO LUKE AIR FORCE BASE REAL ESTATE AT WWW.LUKEAFBREALESTATE.COM
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