VA Loans

Are There Any VA Lenders In Chicago With No VA Lender Overlays?

Need to qualify for VA Home Loan by disabled veteran?

Dear Gustan Cho Associates Team,

I am a veteran interested in obtaining a VA loan and would like to clarify a few aspects of my situation. I initially filed for Chapter 13 bankruptcy in March 2022, but after my separation from the Navy in May 2024, I converted to Chapter 7 in June 2024. Since the discharge, I have been working to rebuild my financial stability. My only current income comes from my 100% VA disability compensation and the BAH I receive from my GI Bill. I am actively searching for work but have not yet found a position that fits. Additionally, I am living in an apartment rented under my cousin’s name, with all utilities also in their name, so I don’t have any formal lease or utility bills in my name.

I’ve heard that your team specializes in helping clients with non-traditional cases, and I’m hoping you might be able to guide me through this process. Specifically, I have the following questions:

1. Do you have experience working with clients who have converted from Chapter 13 to Chapter 7 bankruptcy?
2. What is the earliest I might qualify for a VA loan given my conversion from Chapter 13 to Chapter 7?
3. What additional documentation will I need to provide to show my financial recovery and improve my chances?
4. How do you approach manual underwriting in cases like mine, and what factors are most important?
5. What kind of interest rates and loan terms could I expect based on my financial history?

Additionally, regarding my current living situation and income:

1. How does my current living arrangement, where I am not listed on the lease or utility accounts, impact the manual underwriting process for a VA loan?
2. Can I provide alternative documentation to verify my living situation, such as a rent-free letter or a notarized letter from my cousin who holds the lease? Would this be acceptable for meeting the requirements of rental verification?
3. Will the fact that my only income right now is from VA disability compensation and my BAH significantly affect my chances of qualifying for a VA loan? Are there compensating factors, such as savings or financial reserves, that could help offset this?

I appreciate any guidance you can provide and look forward to discussing how we can move forward with the loan process. Thank you for your time.

To clarify our previous discussion. Late PAYMENTS within the last 6 or 12 months isn’t a blanket guide in which we grant without valid reasoning behind the lates. In addition to other things that may paint a proper picture away from financial management, usually via the credit report.

example.

If the applicant clearly has been making effort to keep a clean nose for the prior year(s) leading up to the lates. But fell off the wagon in recent times with one or two lates (simultaneous or sequential). A proper LOX or even owning the mistake as they do happen, has a good chance of being sympathetic to this situation due to historical evidence that’s contrary to financial mismanagement.

If said applicant has a history of multiple lates leading up to recent lates that just so happen to lapse into 12-month guidelines. Highly likely, 12 months of clean credit history is going to be required. Financial mismanagement is established with past history which connects dots far too easily.

At any rate, we will certainly do all that’s possible and within reason to have a deal succeed. Otherwise, we have no business doing 500 fico manuals

@Gustan

This is for my son who is married to a gay man. They live in California together and been married 4 years in gay church. Antonio is a Navy Veteran and wants to buy a house with a VA LOAN. He told me that he needs a cosigner on his VA loan and wanted me to cosign for him. But the loan officer said VA loans does not allow cosigner except husband or wife. He told the loan officer that his husband will be cosigner. The Loan officer said gay people married people don’t count. Is this true?

I know HUD requires nonborrowing spouse’s debts to be counted on FHA home loans in community property states on FHA loans by mortgage lenders. Fannie Mae and Freddie Mac does not require NONBORROWING spouse’s debts to be counted on conventional loans on Conventional loans. What is the Veterans Administration (VA) requirements on NONBORROWING spouse’s debts on VA loans when a veteran applies for a VA LOAN? Does the NONBORROWING spouse’s debts count towards the debt to income ratio on VA loans in community property states.

Can anybody let me know where one can find the VA loans interest rate? Another thing, my score is significantly more than my husbands For Va loan can we use my score? Lender said she cant because I am new in the country and I am here just 1 year and 2 months/ But if my credit score is 768 why not. I think it discrimination because like if iam new and a foriegner. May be in my country I had good rating. They wanted me to be a co signer but then why dont use my credit score

I am a Disabled Veteran looking to make a home purchase in California, but unfortunately I have around a 50% DTI with a 675 credit score, and 100% payment history. This has been very problematic with getting a mortgage approved due to my DTI. I am under contract for the home I wish to purchase with 8/27/18 being the close date, and I would like use the VA loan to avoid a down payment. What are my options?

I am looking to use my VA Loan in California but I am having a hard time finding a lender with no or little overlays. My current credit score is 600 and my DTI is anywhere from 48-56% depending on the loan amount. I do not have any collections or late payments on my report. I have almost 3x the residual income required for a family of 3 in California. I wanted to see if you would be able to help me out. DONE

What are the guidelines on gift of equity on VA LOANS. What are the VA GUIDELINES on purchasing a home from a family member under market value.

How can I qualify for a VA loan as a veteran or service member?

Hello all,

Last year, I purchased my house with a VA loan, and even though I am happy with it, I have been hearing a lot about the benefits of refinancing. I’m wondering when I’m allowed to refinance my VA loan and if there are certain stipulations that would have to be observed. Also, since buying the house, my financial situation has shifted somewhat, so that makes me curious whether that would also alter some of the options I have. Thanks!

I am considering taking out a VA loan, but I need to know how to go about this. I understand that I have to meet certain requirements to qualify, but I’m not sure what they all are, especially when it comes to getting the VA Certificate of Eligibility (COE). Would someone be kind enough to explain it to me and take me through all the procedures for obtaining the COE?

How Are Student Loans Calculated On VA Loans?

Can I Qualify For VA Loan With 589 Credit Score?

IS IT TRUE VA LOANS DO NOT HAVE A CREDIT SCORE REQUIREMENT? WHAT ARE VA REQUIREMENTS ON CREDIT SCORES. THERE IS A LOT OF LENDER THAT HAVE DIFFERENT CREDIT SCORE REQUIREMENTS.

I’m a veteran interested in using a VA loan to buy my first home, but I’ve heard that the process can be complicated. What should I know about VA loans to get started, and how can I ensure I’m prepared?

What is the difference between FHA AMENDATORY CLAUSE and VA AMENDATORY CLAUSE?

• This discussion was modified 5 months, 1 week ago by  Sapna Sharma.

How does VA HOME LOANS work?

Veterans who are looking to purchase a home often wonder whether VA loans are worth it. If you have a down payment and enough income to qualify for virtually all of the available mortgage options, is a VA loan still the best choice?

Can you buy a home from a relative using a VA loan?

There are mortgage lenders that have no overlays on VA loans. Lender overlays are higher lending requirements set by individual mortgage lenders above the minimum agency guidelines from the Veterans Administration on VA loans.

Eligible active duty, retired, and eligible spouses of eligible deceased members of the United States Military can qualify for VA loans with bad credit. Getting approved for a VA loan with bad credit can be challenging, but it is possible under certain circumstances. Here are some key points regarding VA loans and bad credit:

1. Credit Score Requirements:
2. The VA does not have a minimum credit score requirement, but most VA-approved lenders typically require a credit score of at least 620.
3. Some lenders may consider applicants with scores as low as 580, but they will likely require compensating factors.
4. Compensating Factors:
5. VA lenders may be more flexible if you have compensating factors that offset the risk associated with a lower credit score.
6. Compensating factors can include a higher residual income, significant assets or cash reserves, or a strong employment history.
7. Credit History Analysis:
8. VA lenders will closely review your credit report to understand the reasons behind any derogatory items or late payments.
9. They may be more lenient if the negative items are due to extenuating circumstances, such as job loss, medical issues, or divorce.
10. Waiting Periods:
11. If you have previous derogatory events like bankruptcies, foreclosures, or short sales, there are mandatory waiting periods before you can qualify for a VA loan.
12. For Chapter 7 bankruptcy, the waiting period is usually 2 years.
13. For Chapter 13 bankruptcy, you may be eligible after 12 months of on-time payments.
14. For foreclosures and short sales, the waiting period is typically 2 years.
15. Debt-to-Income Ratio:
16. VA loans have more flexible debt-to-income ratio requirements compared to conventional loans.
17. Generally, your total monthly debt payments (including the new mortgage) should not exceed 41% of your gross monthly income.
18. Documentation:
19. Be prepared to provide documentation explaining any derogatory credit events, such as letters of explanation, proof of extenuating circumstances, and evidence of re-established credit.

It’s important to note that while the VA does not have strict credit score requirements, individual lenders may have their own overlays or stricter guidelines. Working with an experienced VA lender or mortgage broker can help you navigate the process and understand your specific eligibility based on your credit situation.

Additionally, taking steps to improve your credit score, reduce outstanding debts, and increase your cash reserves can significantly improve your chances of qualifying for a VA loan with bad credit.

• This discussion was modified 3 days, 16 hours ago by  Sapna Sharma.

How does borrower paid compensation on VA loans work? Why is the borrower paid compensation limited to 1% and cannot be somewhere in between 2.75% and 1.0%?

Can you qualify for VA loans with bad credit? Do you have to pay outstanding collections and charge-off accounts to qualify for VA loans?

What is the credit score guidelines on VA loans. What is it that Veterans United says their minimum credit score requirements is 620 and CrossCountry Mortgage says their credit score requirements is 580? Yet other lenders want a 640 credit score on VA loans. I read a blog on GCA MORTGAGE GROUP And it says that Gustan Cho Associates can do VA loans with credit scores down to 500 FICO. SO what is the skinny and the minimum credit score for VA LOANS?