Profile picture for shark9810

Frustrated-need some guidance on a VA loan

I'm looking for a traditional "$0" down VA loan and can't seem to find the answers I'm looking for. I'm a first time home buyer, and Credit is an issue, as I have a 647 median score. No bankruptcy, no foreclosures, just went through a period of unemployment about 6 years ago which led to two auto repo's and some credit card charge-offs. I've settled or paid off the majority of the debt. Annual income is about $120K and current debt is $29K (car loan), no late payments on anything for the past 5-6 years. I got approved for a VA loan, but with 5% down. My question is, do you think I can get a VA loan with $0 down? I live in the Seattle area and the houses we are looking at are between $300-450k. 5% would be a stretch for me.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 15 - South Sound
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (24)

The VA 0% down program is only available through certain lenders. The goal is to find one that will do it with your situation. Be sure to get multiple quotes... if you are able to get a VA loan don't let anyone talk you out of it, not everyone is certified to give VA loans! Keep searching.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 11
2/10/14
Shark - I am following up to see if you are still in need of any assistance for the VA loan you were looking for ?
thanks 
Dave Skow
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
February 10
You should be able to find a VA lender without a required down payment with your credit and income. There are lenders that can give out VA loans with scores as 580, so 647 should be good to go. The one thing you should remember is that not all lenders are the same. Each lender can have different rates, services, requirements, etc. So I would recommend looking at multiple lenders for your situation. The best thing for you to do is to speak with another lender such as myself to see if you can get started on financing a new home. If you have any further questions or if you would like a loan, feel free to contact me.

Good Luck!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 17
We can do 100% LTV on that credit score.  Also the fact he told you 417K was the max WITH a 5% down payment is also wrong. 

Find a new lender.

Might I recommend myself :)

No matter who you choose though, there are plenty of good lenders in WA on this board, just ditch whoever you're working with.  If they are giving you poor advice at the beginning, it's not going to get any better as the transaction goes forward.  
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 17
Shouldn't need any down payment with your current credit scores for a VA loan. 

I have done thousands of VA loans nationwide, and your situation seems good enough so far to me.

Contact me through my profile to help. 

Thank you.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
Shark,

It's not the VA that won't approve 100% financing. It is the lenders that your broker deals with. It is an overlay situation like I mentioned yesterday. Our 620 credit score is an overlay as well since the VA does not require a minimum credit score. Below 620 you are less likely to get an approval but I have seen as low as 580 allowed by some lenders. 

You need to work with one of the reputable lenders that have answered your posts. Check out our reviews and contact one of us via email or phone. 

Best of luck to you,

Doug
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
find another lender
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
Profile picture for shark9810
Thank you everyone for the answers and advice.  I went back and read some of the emails from the broker that I dealt with and he stated that the VA would only approve 100% down if my credit score was over 680. With a score of 647, they would require 5% down.  He also said I was approved for $417,000.000 with 5% down, which was the maximum.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
I've been doing VA loans for over 25 years and have yet to have an Underwriter require 5% down unless the sales price exceeded the VA loan limits for that area. We do manual underwriting for VA loans down 620 everyday, case by case down to 580. As long as you don't have a bunch of unpaid collections and charge-offs, you should be good to go. I know VA loans like the back of hand as I am a Vet myself. Please feel free to contact me by clicking on my Profile as I don't follow all questions I answer. We are approved to lend in WA.

Best of Luck!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
Credit score is one part of the matrix. When a person applies for a VA loan your credit is ran through an automated underwriting system (AUS).  VA set the parameters for the AUS. If they AUS says you don't have strong enough credit history for 100% financing then it does not matter what your score is. Find out from your lender if it was the AUS or a "bank overlay" he will know what this means. If he says AUS you need to find a bank that manually underwrites VA loans or wait until you do have more positive history on your credit report. If it was an overlay try the next bank.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
Shark, I'm in Bellingham and my employer is a community bank throughout the state of Washington. Based on the information in your post, it sounds like a 0 down VA loan is something we could help you with.

There's no way to know for sure without having an application and more information, but pre-qualifications are free and with in house underwriting, I can generally get them done in the same day with a high degree of accuracy.

Click on my profile and feel free to get in contact if you are interested.

Thanks!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16

This scenario should be fine .....we have 2 different VA loan programs ...one has a 600 middle score  min. and the other has a min mid score of 620

If you would like to begin a pre-approval click on my profile and send me an email with any questions or needs . .... we can work on file via phone and email.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
I agree with the others who posted regarding the lender overlay requiring 5% down.  Getting a few other lender quotes is your best bet to see if you can get the 100% VA financing you are looking for.

Good Luck!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
Contact at least 2 mortgage brokers that do VA loans.  Good luck!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
Shark,

Although the VA does allow 100% financing, some lenders do not do them. Certain lender's will require different "overlays" and have more strict guidelines than the actual loan program allows for. Shop around until you find a good Loan Officer whose company offers 100% financing through the VA. they are out there! 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
Shark, you need a loan broker who is familiar with VA and different VA lenders.  A couple of years ago we had a buyer client who had an employment situation similar to yours that he did not disclose to us.  His lender was not familiar with VA loans and could not get the job done.  We went from the lender saying we would be able to close a week early to needing a two week delay.  At that point we had the client transfer to one of our preferred lenders, who pointed out the original lender's backup plan still wouldn't work even the employment history, but who did manage to close the sale.

About a year later I was previewing a home by the same listing agent and that agent called me up to ask me about that lender.  He was that impressed!  The right lender makes all the difference.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
For a VA home loan, as long as you have your eligibility you should be able to finance 100% of your purchase price, plus you can finance on top of that any funding fee if you are required to pay it.  If you have a service connected disability the funding fee from the VA is typically waived. 

When it comes to down payment and closing costs, on a purchase you cannot finance in the closing costs of the loan, so therefore you will still most likely need some money to be able to come to closing.  A lot of times sellers will provide a seller credit, however the difference between what you are getting as a seller credit and the total costs of the loan you would still need to be able to cover yourself.

With new mortgage laws in place, we as the lender have to go through and make sure that we can evidence you have the ability to repay the loan.  Sometimes if you have no housing or rental history the lender may require that you have liquid money in the bank as a cushion in case of payment shock, but have never heard that it is required to be used for a down payment. 

As far as credit goes, your score sounds perfectly fine.  Sometimes it is not the score it is what is still showing up on your credit report.  A lot of times it is hard to get a VA home loan if you have any outstanding collections, charge offs, judgments, etc. Usually they all have to be satisfied prior to obtaining VA financing. 

I am located on the east coast but am licensed in Washington state and would be more than glad to talk to you to see what you need to do in order to get approved for a VA home loan.  Feel free to contact me at your convenience.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
There is no reason for you to ut 5% for a down payemnt, this is clearly a "overlay".  Overlay means that the particular company you are working wtih has guidelines and restrictions that dont allow you to purchase with $0 Down.  As already mentioned, a 620 score wold be a minimum with most companies.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
"THanks for the post .....is the  647 your middle score ?  ( you say median  so I am double checking this ) ....."
-----------
Why would you need to double check it? 
The Median is the "middle number" in a sorted list of numbers.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
My guess is that they must have an additional "overlay" for credit scores below 660. An overlay is an additional requirement by the bank or broker that is more restrictive than standard guidelines for the loan program you are considering. (One of the main reasons I moved to HomeStreet from my last employer).

It could also be due to purchase price being higher than the VA County Loan Limit for the County that you are buying in but the 2014 Loan Limit for 0 down in Pierce County is $505,000.

HomeStreet has no overlays on LTV limits due to credit score. If you are 620 or higher you are good to go as long as the Automated Underwriting System issues an "Approve/Eligible" recommendation.

If you want to talk further and work on a pre-approval click on my profile and send me an email with a good time to talk. I am available tomorrow in the morning up until 9 and then after 4:30. My office is in Kirkland but we can do pretty much everything via phone and email.

Doug 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 15
Profile picture for shark9810
Doug-I was told by the bank that the VA would only approve if I put 5% down because of the middle credit score.  That was their reason.  I'm looking to buy in Pierce County.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 15
Flyingmyers,

Have you been told why you would need 5% down? What County are you looking to buy in? At HomeStreet we have 100% LTV VA Loans down to 620 FICO. Just click on my profile and shoot me an email and we will see what is up and what we can do for you.

Best regards,

Doug
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 15
THanks for the post .....is the  647 your middle score ?  ( you say median  so I am double checking this ) .....

if 647  VA Zero down loan should be possible

We are in  Seattle as well and  I would recommend  getting  pre approved asap ...Are you working with soemone on this now ?

Pre approval is  free and non obliging as well

My profile has our contact information.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 15
It would probably be beneficial for you to speak with a company like mine. We have access to multiple programs and finance options, as opposed to direct lenders. My profile has our contact information.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 15
 
Related Questions
Frustrated-need some guidance on a VA loan
Profile picture for Taylor Beattie
Latest answer by Taylor Beattie
February 11 | 24 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 113 Little St SW, Tumwater, WA Home For Sale
    113 Little St SW, Tumwater, WA 98512

     For Sale: $103,000

    • Beds: 2
    • Sqft: 901
    • Baths: 1.0
    • Lot: 3049
  2. 5447 57th Loop SE, Lacey, WA Home For Sale
    5447 57th Loop SE, Lacey, WA 98503

     For Sale: $135,000

    • Beds: 2
    • Sqft: 1235
    • Baths: 3.0
    • Lot: 2613
  3. 1530 Evergreen Park Ln SW, Olympia, WA Home For Sale
    1530 Evergreen Park Ln SW, Olympia, WA 98502

     For Sale: $423,500

    • Beds: 4
    • Sqft: 3306
    • Baths: 3.25
    • Lot: 17860