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VA- Decent Credit- Help!

Husband and I are in the market to buy a home.  My husband recently solely applied for a $310,000 VA mortgage from Navy Federal with $60,000 income and was denied but was told "it was close."  His late pays are whats hurting him.

Here are our details:
-Husband credit score: 655
-My credit score: 648
-I have 3 years of clean payments, no lates (2 student loans, 2 car payments)
-Husband has 1.5 years of clean payments on 3 student loans, 1 car payment and 1 credit card EXCEPT he had one late payment in october on a student loan because he was deployed and I was locked out of his account online and wasn't authorized to speak to them on the phone.

Navy Federal told him that if he didn't have that late payment in October he would probably be ok. I'm currently trying to dispute it but Sallie Mae is being difficult. 

Main question, if we lower the amount of the loan we are requesting to $280,000 and add my credit and income of $40,000, will we be more likely to be approved?

Do we go back to Navy Federal or do we find another VA lender?  And how would we know where to find a credible VA lender who will work with us??

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April 05 2012 - US
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Answers (14)

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We currently live in Georgia but will be moving to Pennsylvania in 2 weeks and that is where we are looking for a home.
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April 15 2012
Agree with Norm and all others.  You should not have a problem and I would also recommend applying elsewhere.  What state are you in?
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April 11 2012
You will not pass going through Caivers which is a check to see if there are any lates out there 
======================
NO it is not, it will never tell you if there are "any lates out there".  CAIVRS is a search for defaulted government debt and is also a search to see if any government claims were paid (i.e. a FHA foreclosure).

VA has absolutely no restriction on a "late on a student loan".





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April 11 2012
I would not be applying any where else, they VA or any other government program will not allow a late on a student loan. You will not pass going through Caivers which is a check to see if there are any lates out there. You will have to wait until October to be able to get past it unless you can get in touch with Sallie Mae and see if they will remove the late considering he was away and protecting our Country!
Good Luck.

-Pam
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April 11 2012
On that late to Sallie Mae, I wouldn't necessarilly "dispute" it as much as ask for some good will. I would write an emai, AND a letter, AND call as many people as I could there saying exactly what happened...that he was deployed and there were difficulties back home accessing the money, would they PLEASE remove the late as it is affecting your ability to buy a hew home. All you need is just the right person to have a little compassion and delete it. You might go to the forums at www.myfico.com and ask if anyone has had success with a contact at SM. Sounds like a lot of work, but really you are just writng one note and sending it to a lot of people.

What state are you in? That might help someone suggest a lender.
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April 11 2012
I would try another VA lender.
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April 10 2012
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Bump!
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April 10 2012
You have at least a 30 day window where the additional credit pulls really aren't going to hurt you, so you might consider just applying with a couple and seeing what they say. Even though they are all VA loans, the lender's overlays (rules in addition to what the VA requires) can make a big difference.

And thank you, I am thrilled you found some of my posts helpful. I have had to learn everything the hard way, and have gotten some great advice and support here. So it pleases me to no end to be able to help others.
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April 06 2012
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We didn't include my on the application at first because we weren't 100% where my credit was at...but then I pulled my report and score so we know mine is fine. 

Thank you all for your advice!  Would big banks like Wells Fargo or Bank of America be just as "tight" with their rules?  Should we look to a smaller bank?
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April 06 2012
You should check with another lender. You have a strong explanation for your late and you should be fine. And why are you off the current loan application?  You credit score is fine and your income will make your file even stronger.  I have also closed plenty of VA loans with the borrowers with current late payments.  Your current lender seems to be tight with their rules. 
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April 06 2012
You really should check with another VA lender as one late payment like you are describing shouldn't be an issue.  I have closed plenty of VA mortgages with late payments in the last 12 months with explanations so definitely check it out elsewhere.
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April 06 2012
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Thank you Cindy!  I first want to thank you as over the past couple of days I have found many of your posts and answers to other people's questions very very informative!
Second, my husband spoke to Navy Federal before and claims they didn't really give him a chance to explain the late payment.  Like I said there were lates two years previously, but my understanding is that the VA only requires 12 months (24 preferably) of paid as agreed payments.  If we submit an explanation with our next application, would most lenders take that into consideration and possibly excuse it?
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April 05 2012
Wow, one late payment while DEPLOYED and that's an issue? I sure hope you guys can find a loan officer/broker that will try to work around that, and tell your husband thank you for his service to our country.

Lenders who post here are often more active during regular business hours, so if you don't get an answer, bump it in the morning.
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April 05 2012
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And just an update...other than the 10/11 late pay...all his other late pays are from 2+ years ago..problem is there are a decent amount.....How bad does this hurt us with essentially 1.5 years of good payments for him and 3 years for me?
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April 05 2012
 
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