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Do I even have a chance for a VA or FHA loan?

I'm looking to buy a home in October with a VA loan.  Here are my issues:

1.  Chapter 7 bankruptcy discharged in June 2010
2.  Two 30-day lates on a credit card (June 2012/Dec 2012) - still disputing with bank
3.  Will my student loans be included in my DTI ratio if they are deferred until Dec 2014?

My mid-score is 645.

Do I even have a chance for a VA loan?

Thanks.

  • August 02 2013 - US
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Answers (5)

Student Loans (12 months) and credit score will not stop you. The only thing I can see is the two 30 day lates after the BK. These must be out of dispute before getting the mortgage. Hopefully you can get them to take the lates off, otherwise you'll be hard pressed to find someone who can do the loan for you.
  • August 05 2013
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Yes, student loans that are deferred more than 12 months form the date of funding can be excluded from DTI for FHA & VA:

FHA & VA loans do not *include* the deferred student loans in your debt to income ratio as long as they'll be deferred for the first 12 months of the mortgage - this means you need something in writing from the creditor stating when the repayment date beings/deferment date ends. It can't be ambiguous like "6 months after graduation", etc. http://www.trulia.com/blog
  • August 05 2013
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We look at two years out on student loans...
  • August 02 2013
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I thought that student loans were not included in DTI if they were deferred pfor more than 12 months after closing. I'm just trying to navigate this confusing process!
  • August 02 2013
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Yes, you have a chance.
Yes, your student loans will be included in your DTI ratio if they are deferred until Dec 2014.

Please feel free to contact me directly if you have any further questions, I'd be glad to help. 

All the best,  
Ros  

Roswell Moore, CMPS  
Certified Mortgage Planner  
  • August 02 2013
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