VA Loan Underwriting Question

[VAConfusion]

I have a question about VA loans for any underwriters or lenders familiar with the process.

 

I see that VA guidelines require 12 months history on where you live. My husband has been in the military for a little over a year, so we have been on base housing and they simply take our BAH. If they need 24 months of history he lived in a house that is mortgaged by me before that.

 

I have a house in my name, and my name only. It's where we lived before he enlisted and it's currently a rental property. About 3 years ago we had an unexpected child. I had to stop working and I got behind on my mortgage (I was putting my husband through an internship he ended up having to abandon). I repeatedly tried to modify my loan, and my husband had quit his unpaid internship and got a new job. They refused to work with me to modify my loan until we were 3 months behind on payments. As a result we ended up constantly being about 1.5 months behind while we tried to save up to actually catch up. We had finally gotten to only about 3 weeks behind on payments when my husband's new company started going under and laying off everyone.

 

He ended up getting a new job while he worked on enlisting, but we ended up 3 months behind. They sent me a foreclosure notice, and we were able to fix it immediately due to his new job.

 

There has not been a late payment since October 2012 (18 months ago), when we finally caught up and stopped the foreclosure. It was not actually foreclosed on, just the proceedings started. He is not on the mortgage in any way, shape or form. He is the one applying for the VA loan, and I am not a co-signer.

 

I know VA loans require two years since an actual foreclosure, but the house was never foreclosed on and I still have it.

 

How will this affect the underwriting process? It does not affect his credit as it is not in his name.

 

Thanks for the help!

 

[Brian B The Loan Professor]

It will depend on the state - if you are in a community property state it may keep you from buying until 2 years out - if not ina community property state it shouldnt impact his ability to get a loan.

Only in a community property state is the spouses debt considered when they are not on the loan

As long as it is just in his name you should be fine

 

B

[VAConfusion]

Neither the house I own or the house he's buying are in a community property state. Thanks!