Need-to-Know Credit

Questions VA Lenders Ask

For veterans and active duty

service members, the VA

guaranteed home loan program

offers many advantages.

These loans have been

designed to put home

ownership within the range of

all those individuals who are

now serving their country or

have served in the past.

Although some features of VA

guaranteed loans are different than

conventional loans, such as not

requiring a down payment, other

features, such as credit

considerations are similar to

standard mortgage loans.

Credit Considerations

Just like traditional home loans,

VA guaranteed loans require

applicants to provide information

about their credit histories.

VA mortgages do not require a

minimum credit score, nor

is a maximum debt ratio

to be considered.

Instead, the VA encourages

lenders to consider the overall

lending profile to make

decisions about loans.

Although the VA states no

maximum amount for a loan, the

amount covered under the

guarantee is limited.

In most parts of the country,

loan amounts up to $417,000 do

not require a down payment.

What Is Your Credit Score?

Generally, a credit score above

620 is favorable to you. The

credit score that consumers see

is not the same one that lenders

have available.

Under lending criteria, you may

have a different score, which

may not be as favorable to your

loan application.

Lenders also must receive

scores from two or three

different credit agencies, and

their choice of score may put

you below the minimum

620 number.

If you have questions about

your credit score, asking for

pre-qualification or pre-approval

will help you to determine your

likelihood of success in

securing a VA guaranteed loan.

Do You Have Any Old

Collections or Judgments on

Your Record?

The VA Lenders Handbook

recognizes that old collections

or judgments on an applicant’s

record can indicate that the

individual may be a poor risk

for a loan.

However, the size of the unpaid

amount may have a bearing on

whether the lender will

approve a loan.

Generally, lenders have a cap on

these debts, and if the amount

is above their limit, the loan will

be denied.

If any of the unpaid debt is to

the federal government, the loan

will be denied. Setting up a

payment plan to manage the

debt can often satisfy their

requirements for approval

of a loan.

Do You Have A Bankruptcy or

Foreclosure on Your Record?

A bankruptcy or foreclosure will

cause the lender to impose a

waiting period after the event

before considering your

application for a home loan.

After a foreclosure or short sale,

you will be required to wait 24 to

36 months after the completion

of the proceeding.

For a Chapter 7 bankruptcy, the

waiting period is 24 to 36

months. For a Chapter 11

bankruptcy, the waiting period

is 12 to 36 months.

The strength of your overall

credit will be considered in the

amount of time you are required

to wait to get a loan.

Is Your Income Stable?

The lender will require you to

prove that your current income

is stable and sufficient to cover

the loan payments on

a regular basis.

They will calculate your ability

to pay the mortgage amount

plus ordinary living expenses.

Some types of income will not

be considered in regard to home

loans for veterans, such as

part-time work you have only

done for a short period

or alimony payments.

Our VA Loan Specialist helps

veterans obtain the loans they

are entitled to.

He served in the United States

Marine Corps, and now devotes

himself to the Veteran home

buyer in the Phoenix area,

fulfilling a passion of his while

at the same time helping others

achieve home ownership.

Be a proud homeowner today.

For more details call 480-351-

5904 or visit the site

www.valoansforvets.com

VA Loans for Vets7702 E. Doubletree Ranch Road, Suite 220

Scottsdale, AZ 85258

Phone: (480) 351-5904

Email: jimmyv@fcbmtg.com