VA loan source

Many brokers charge an origination fee, while most banks will not. Could result in a savings to you in closing costs, or using those dollars to buy down your interest rate to save on your monthly payment.

I am assuming that you are doing a VA cash out refinance. There are lenders out there that will do a VA refinance up to 100% LTV on either a cash out or no-cash out refi, allowing you to save the $11,000, or use it in a more efficient way, such as buying down the rate, etc. Hope it works out for you, and Thanks for your service. Steve

Yes, the FHA 203 K streamline is available as a no cash out refi.

It would look like you are in pretty good shape. I would not use savings to pay off collections at this point. The funds in savings can sometimes help tilt the Automated Underwriting Systems to an approval, rather than paying off debt that may not be an issue. With rates as good as they are now, i would say go for it! Good Luck! Steve

While VA does not have a required credit score to qualify, many lenders do. Typically with a 620, you should be fine. Same with the collections and charge offs. Some require them to be paid off prior to funding as an overlay to VA guidelines. Typically, isolated collection accounts do not need to be paid off, and special consideration is given to medical collections. And, of course, recent re-established credit since collections helps. It is really hard to say without specifics. Overall, VA is most flexible loan product out there with respect to credit, down payment, debt to income, and use of seller contributions. Hope this helps, and Thanks to your husband (and you) for his service. Steve

Hi there...typically there are three things that must be done with a payment plan on a tax lien: 1) provide a copy of the agreement (as you mentioned) 2) minimum of three months of scheduled payments made prior to credit approval, to establish a payment pattern 3) negotiated payment must be included in the borrower's Debt-to-Income ratio. Hope this helps, and will work for you. You should really check with the mortgage originator to make sure their guidelines are the same as the ones I have included. Steve

As long as your wife has been on title for 24 months prior to the funding of the new refinance, she would be eligible. Sounds like it would put you in a much better position... Hope this helps, Steve

This isn't true if it is a conventional loan unless something has changed in the last 2 years. We live in Texas and our mortgage is just in my wife's name. My credit, income, & debts were not used but my name is on the title. You are correct...I was assuming an FHA sitaution due to the DTI situation. Should have been more complete in the post. Also should not have been working on other things while posting!

Are you buying a property in a community property state? That can have an impact, as your debts would need to be included regardless of you being on the loan or not if a community property state. If not, her income as outlined in your post, should work for the purchase. Good luck! Steve

Sounds to me that you should bein good shape on an FHA purchase. When you were told that "lenders may not like your low scores" with that income you have, I am not sure what they are talking about as your loan would most likely be approved on an Automated Underwriting System with those low DTI ratios. The underwriter would only have to verify the findings of the AUS. It is true that if you have a number of credit pulls in a short period of time that does not have the negative impact on your scores that the same number of pulls over a longer period of time would. This shows you are shopping for a particular item. Do you have a downpayment saved? You did not mention assets either. With the information you have given, you should be in good shape. Good luck. Steve

Many lenders are overlaying their own guidelines on top of VA guidelines, or Automated Underwriting findings. I have seen a few that will not approve a VA loan, regardless of the AUS approval. It is important to find a broker that has access to lenders that will underwrite according to AUS findings. They are out there. Hope this helps, and good luck to you and your renter. Steve

I would add one question you should ask your loan officer, and that is "Does the lender underwrite to AUS findings?" There are some lenders that I have seen out there that have guidelines on their loans that they underwrite to, no matter what the AUS findings are. Good luck...sounds like you should be in good shape. Steve

VA guidelines are ambiguous on collections and charge offs...."Isolated collection accounts do not necessarily have to be paid off as a condition for loan approval". Most automated underwriting systems will approve loans wiht collections and charge offs if the rest of the file is strong. Most lenders will still underwrite in accordance wiht the findings of the AUS also, so there may be some opportunities there. Hope this helps, and as always Thanks for Serving Steve

Sorry to hear it is working out this way for you. If I can ask, how much was the application deposit? Will you be able to get that back due to the appraisal coming in low or is it non-refundable? The earnest money definitely should come back to you based on low appraisal. Good luck and Thanks for serving Steve

There are some lenders that will issue a credit approval on property that is TBD (to be determined). In your market area, and several others, that can be very important to get into the game. Good luck and Thanks for serving. Steve