Thank you for all your advice as well as thanks for my service. It is greatly appreciated. At this time I have been in contact with a local lender that has given me more hope with one phone call than all the time I spent with the other two. There is a reason to be optimistic, but obviously I will not get my hopes up until a deal can be consummated. I promise that I will contact those who have offered help should this try fail. If nothing else, what it have learned in the last few days is that I should not have given up when I ran into the early roadblocks. Thank you all again.
I went through two lenders, Quicken Loans and a savings bank that specializes in VA. In both instances, they gave me pre-qualifying, the latter squashed it after all paperwork was in and submitted to underwriting after we found a home, agreed on price and had appraisal. To say the least, we were crushed because the reason for the last minute denial was DTI. With a fixed income, breaking down DTI is a slow process. We try to do the right thing and get all the wrong answers. Thanks everyone.
I have a service connected disability (60%) and a Vietnam veteran who has never used his VA Loan benefit. My credit score hovers around 700 and have not missed a payment to any of my creditors in more than a decade. I had to short sale my home two years ago because of medical reasons and was never late on that either. I moved to a different state and we don't seem to have an issue with lenders with the short sale, but the move cost us a small fortune. We have worked on knocking down our debt, consolidated a lot of it at dramatically lower interest rates, unfortunately the only road block seems to be our DTI. My wife and I pay $1300 for rent and the house we nearly purchased would have knocked $450 off that but our overall DTI squashed the deal. We are responsible people with a track record of good behavior, credit wise, but lenders don't seem to take that into consideration. My question is, is there any program out there that would help a disabled vet with a disabled wife with guaranteed income get a VA Loan? Thanks.
Russ, my previous (and only) mortgage was NOT via the VA. I have never used my benefit so this will be a first time application. It seems my biggest problem is finding a lender who understands that I can apply now which would help me greatly because I would like to buy the house I live in and do it before the market here surges. This area is not only rebounding quite nicely but will take a major leap because of major corporations moving here. Philip, thanks again.
Philip, greatly appreciated.
Philip, thanks for the response. Unfortunately, I have run into the two-year answer from each of the lending companies I have contacted. I was up to date on my mortgage at time of short sale and have been current on my bills for 140 consecutive months so it is a case of lenders not knowing that they can offer me a mortgage? I am stumped. Again, thanks for the info and I will check into this further.
Marcy, I contacted two local lenders and was told of the two year 'cooling off' period, however I have read that that it could be shorter - for a VA - under certain circumstances like hardship, health, etc. and if you were current on all bills at least 12 months prior to the short sale. That is why I am so confused. Any help would be appreciated?
I have received conflicting answers to securing a VA loan after a short sale, some say two years while others say less under certain circumstances. We were forced to sell our 2 story Florida condo because my wife could no longer climb stairs. We a free of that mortgage and moved to South Carolina. NOTE: We were current on mortgage at time of short sale. Our credit scores range from 640-680+ and we have had more than 140 consecutive months of on-time payments to creditors. However, our debt to income ratio is about 75% due in part to upgrades we made on our condo (which we no longer own) and the cost of a major move. Combined we are in excess of $60K income, pay approximately $1300 in rent and know our mortgage payments would be dramatically less with a mortgage. The house we live in can be bought from the owner. I am a disabled veteran, my wife is on permanent disability and the house we live in would be the perfect property for us. Can this happen?