Permission to cheer

I had written a long post earlier this week, and my computer crashed just before I posted. I just wanted to let anybody who was following know that my husband and I got approved for a VA home loan. We close at the end of the month! I'm so excited.

If you'll recall, we were first offered two loans-a 90/10, with rates at close to 11% and 13% Outrageous, I know, and we were definitely going to reject. We were waiting forever for the bank that does VA loans to make a decision on us. We got the thumbs up this week: 7.625% (2 points, though--but builder is paying almost all of the closing costs)

I'm just ecstatic that we were able to work through all our credit issues (thanks to this board), and get a prime rate. I know the VA eligibility of course helped us a great deal, but it was still a credit decision that the bank had to make. Now, I really believe there is a home loan out there for everybody, so hang in there.

CC

 

Cheers!

Cheers!

And now being a homeowner will help you get better credit cards as well...

 

I had a question for you CC, you must have great credit now if the VA is willing to back you. We have that option to use the VA backing system, but were told that you have to have pretty good credit, no lates or anything over the past 24 months for the VA to be willing to back you, was this true in your case? I see that you are building a house too, which is what we want to do. We already own the land, I had no idea you could still get VA backing when building.

 

RE: Cheers!

Oh yes, as soon as we're in, I figure I'll be in a better position to wheel and deal. I'm tired of looking in my wallet and seeing the subprime crap!

 

RE: Congratulations!!!

Amen to that! If it were not for the VA, I can say for sure we'd not be in a position to get a home.

 

Well, I think we are still far from having "great" credit. The good news is we don't have any open collections/charge-offs. By working this board, I was able to get a lot of stuff deleted, and we paid off a lot of stuff. But my score is still suffering from all those "paid collections/charge-offs."

The VA-option, honestly, is slightly more relaxed on credit issues so that's why it's a Godsend for those who have it. There can't be any open delinquents, and they all say they want to see a clean history for the last two years. We have an "okay-to-good" 2-year history, but certainly not spotless. My husband was paying off stuff right up to a couple days before our apps were submitted. If there are minor blemishes, you have to correct them, but it is not likely they will outright reject you because of a little slip up. My guess is that in the underwriting process for people with not-so-great-credit, there is still a human being making a decision and that's a good thing.

Yes, the VA does back home construction, but we're not doing custom building. We're just buying in a new development. I have read on the VA's website though that they will still guarantee construction. Just be sure when the house is close to done you put in for a VA-ordered appraisal as early as possible--they won't accept anybody's but their own. But the process is all the same. I think you should go for it. On the VA's website, you'll find a number you can call for questions about the process. (The number varies by where you live). Best of luck; I'm sure you'll get it.

CC

 

Thanks. I'm feeling so giddy. I know you are in a much better credit situation than I am, so I was really curious as to why you were waiting to start applying. I know you said that was one of your credit goals as well.

CC

 

Thank you CC

I appreciate the time you took to answer my questions, rather well too. I just joined junum and am going to do everything I can do get things taken care of. Our scores suck, 550 and 580. Our biggest problem is cards maxed out, I plan to remedy that asap and then give it 6 months before we try to build on our land. I'm hoping that these factors (junum, payind down cards and being VERY careful) will help us to get a loan and be able to start building around fall time. I kind of doubt it, but it will help me get through the time if I believe it! Haha!

 

Oh tell me about it. We actually changed brokers; we got one who was much more knowledgeable about the VA process, and he got us approved in a couple days, whereas our other one was really trying push us into that 90/10. We would have been up to our eyeballs in debt, and I just know we would have defaulted under those terms (since I'll be on maternity leave for several months). The payments would have been more than $400 extra a month! And that's even with the option of not paying taxes and insurance in the monthly payment. The subprime market apparently big business even in mortgages, but with FHA and VA out there, almost no one should accept those kinds of terms.