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FACING EVICTION WITH A 566 score
Trying to get approved for VA LOAN. Need all help, assistance and solutions I can find. I have 30 days left on my 60 days to buy or vacate the home I am renting. My middle my mortgage middle score is 566 and is affected by multiple history of late payments in the past year due to financial hardship and military assignment away from home. I cannot loose the house due to an on going custody battle my family and I need to maintain this residence. Never been late on rent and currently working hard to fix my credit. I need all the help, assistance and advice I can get I this time.
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1 Reply
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Thanks for your service. You’re up against it at the moment with just 30 days to sort your home and the added stress of the custody issue.
The good news is that a 566 credit score won’t automatically bar you from getting a VA mortgage. The VA doesn’t set a minimum credit score for these loans at all. Some lenders will of course have their own requirements.
Your biggest problem may well be that 566 credit score rather than the late payments over the last year. That said, there are some things you can do immediately to improve your prospects.
Here are Five Urgent Steps You Can Take Right Now to Move Forward:
- Find a VA lender who does manual underwriting (i.e. they look at the full picture rather than just your credit score).
- Ask them to look at your full case and not just the numbers.
- Collect all the documentation relating to your military assignment and your financial problems.
- Write a letter explaining the reason for the late payments, when the problems arose, how they impacted your finances and what has changed since then.
- Attach your military orders and any other relevant documentation.
- Collect solid proof of your rent payments.
- A good rental history is a very important factor in the VA’s assessment of your ability to manage a mortgage.
- You should gather 12 to 24 months of bank statements, cancelled checks or rent books.
- The VA will also look at your take-home pay after you’ve deducted your outgoings and housing costs.
- A stable employment history, sufficient take-home pay and evidence that you’ve recovered from any previous financial difficulties can all help your application even if your credit is not ideal.
- Get in touch with your landlord as soon as possible and request a written extension of 30 to 60 days whilst your loan is being processed.
- You’ll already be living in the property so you may be able to expedite certain aspects of the purchase, you’ll still need to complete the appraisal, title work, loan approval and the closing.
Important Protection for Military Families on Active Duty
Contact your military legal assistance office immediately to have the notice relating to the purchase or move out reviewed. Service Members Civil Relief Act does provide some protection against eviction, but it does not automatically stop a lease from terminating or prevent the landlord from selling. What will happen in your particular case will be dependent on your individual circumstances and state law.
What I Need to Know to Help
Please Send Me These Details:
Property:
- What city and state is the property in, and what is the agreed purchase price?
Military Status:
- Are you active duty, retired or a veteran?
- Do you have your VA Certificate of Eligibility? Income:
- What is your approximate gross monthly income (including any military pay you’re receiving)?
- Credit: How many 30-day, 60-day and 90-day late payments have you had in the past 12 months?
- When was your most recent late payment?
Rent:
- What’s your monthly rent, and how long have you been at your current address?
Financing:
- Have you applied for a VA loan and been turned down already or are you just starting out?
- My suggestion would be to take two actions: get a fast tracked VA mortgage review from a lender that does manual underwriting and is familiar with the current credit situation and to formally request a written extension from the property owner.
It’s a difficult situation, but don’t give up just yet. With a 566 credit score, documented military hardship, and a solid rental history, there may yet be a way, depending on your full credit picture, your income, and the lender’s requirements. Your number one priority at the moment is to find out whether an underwriter can approve your application in time to keep your family’s home safe.
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