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VA home loan in Arizona

Hello, I have a couple questions I wondered if I could get answered, my husband and I are thinking of buying a home, we have never bought before. I've been at the same job for about 16 years, he's been at his for 3 years. Being a veteran and the benefits of the V.A loan I'm sure that's the option he will want. We have payed $144,000 dollars in rent the last 8 years at the same home and its becoming very tiresome. We both looked at our fico scores yesterday and I know two of his were 742 and 777....Mine were low 700's. My question is, I had a wage garnishment that is no longer on my credit report from 8 years ago,but I am still paying on it. I know information like this must be disclosed but I don't know if having that ruins any chance of a home loan or not. Together our income is about 94,000..we would need both of us I believe to qualify for a home we wanted..any advice would be great Thanks
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June 05 - Peoria
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Answers (7)

Hi again,

It looks like you have posted some more information, so I wanted to reach out to discuss. With $7,900 a month in income and $1,500 in total obligations (other than home), you should easily qualify for a $330,000 VA loan. At 45% DTI (I have gotten approvals for VA loans with 55+% DTI ratios), you would have $3,555 to cover all debts, including the new housing payment. Subtract your $1,500 in other obligations and you have $2,000 left for a housing payment. A $330,000 loan at 4.25% on a 30 year fixed loan is a principal and interest payment of $1623.40. As long as your taxes, HOA and insurance are less than $350-400, you would be fine. Please feel free to contact me directly to run your exact numbers. I can analyze your situation and run your loan through an automated approval system within a day at no charge. Don't give up on your goal of home ownership if someone gave you bad advice. 
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June 09
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Thank you for everyone who answered, I've been doing some research and think we need to get our DTI down, From my understanding we make about 7900 a month and pay out 1500 in cars,students loans and credit cards, which I believe could only produce an approval of about $1500 a month in mortgage payments and we were looking in the $330,000 range..I think we'll have to wait and pay off...I think our DTI is about 18 to 20% but from what I understand that would only be for a home about $220,000..and that just won't work...and I see interest rates are rising..that sucks!! Thank you everyone for your advice
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June 07

Hello sealt73.  Thanks for the question!

The answers provided here on Zillow by these helpful lenders are correct; you appear to be in a wonderful position to buy a home and get a VA loan provided your debt-to-income ratio meets the VA requirements.

Your next step is to contact some of these lenders (or another lender of your choosing) and compare rates and fees and determine how much home you can afford.  This is called the 'pre-approval process' which is critical before you start shopping for a home.

One thing to remember, you'll need about 3% of the purchase price of your new home to cover your buyer's closing costs, which are items such as title/escrow fees, inspection fees, lender fees, appraisal fees, etc.  It's important to note that these costs cannot be financed into the loan; only the VA funding fee is financed into the loan.  These costs must be paid at closing from your own personal funds or they can be 'gifted' to you from a family member. 

Once you speak with a lender, make sure you ask them about the closing costs associated with the purchase that are your responsibility.  (Occasionally, the seller might also be willing to contribute some if not all of those funds to you IF your offer to purchase their home is a strong, competitive offer.  It can be negotiated into the purchase contract.)

Once you find a good lender that you're comfortable working with & have your loan pre-approval in-hand, your set to meet a Realtor to assist you with the process of finding a home, writing & negotiating the offer, entering escrow, scheduling inspections & repairs (if necessary) and helping you all the way through the closing.

I'd love the opportunity to assist you with that important step.  Please feel free to contact me through my Zillow profile - you can email me or give me a quick call.  I have several useful handouts for first-time buyers that I can send you as well.

Thanks again for the question!  I hope to hear from you soon!

Jim Mitchell
Realty ONE Group

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June 05
Being a person that rented for many year I yesterday what your talking about. I must have paid $150,000 in rent in my life time that I will never see again. With that been say not everyone should buy a home, but I think you would be in a great position to purchase a home and start building equity and have a tax write off( I'm not a CPA so please talk to your tax professional). Based on the information provide I would highly recommend you use your VA loan which is a 100% financing. Please know if you want a free One on one I'm available to talk.
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June 05
As scary as the mortgage world may seem, based on your scenario you're in great shape to qualify for a loan. Do some research on a great local lender and interview a few loan officers to feel comfortable with making your first purchase. Good luck and enjoy your home buying experience! Jake
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June 05
First and foremost thanks for you service to our nation from one Veteran to another. As a Veteran  i would recommend the VA home loan as you can get financing at 100% with no mortgage insurance and even roll some of your closing cost in the loan. As for the judgement that you are paying on we would count it as part of the overall debt to income. But don't let that discourage you as with great scores as yours the DTI can be as much as 55%. Its way past time that we work together to get you in your dream home. I look forward to making your dream a reality.  
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June 05
Hey there,

I'm a local lender here in Scottsdale. Your loan is a no-brainer (assuming you are otherwise qualified). Wage garnishment will factor into your debt-to-income ratio, but it should not be a detriment to getting a new home loan, especially if the judgment is that old. VA loans offer a variety of benefits, which you have appear to have figured out already.
 
Your credit is great, should not be a concern. Job history doesn't appear to be an issue either. Income is strong, but that will depend on your other debts and the purchase price you are shooting for. 

Feel free to reach out to me directly to discuss options, but based on the info provided, you shouldn't have any hurdles to getting a new home with 100% VA financing. 
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June 05
 
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