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VA Loan in Arizona
I am trying to buy a home so that I can move from Knoxville to Tucson. From the video I saw the only thing that might be hinderance to my mortgage loan approval is that I have only technically had a place to live for six months of the last 24 months because 18 months before I was homeless living in hotels because the place that I rented and lived for 12 years after discharge from the Marine Corps got sold and I had to move.
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1 Reply
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You’re in a tough situation, but it is not hopeless. Let’s look at how a complicated housing history could affect your chances of getting a mortgage and the workarounds available to you.
A 24-month housing history is a requirement to get a mortgage. Lenders might still be able to work with your situation.
Here’s What You Need to Know:
Most lenders want a stable housing history over the previous 24 months as evidence of financial stability. Although your situation of living in a hotel for 18 months could raise a few concerns, the key is that you had no choice. It was due to the sale of your residence, which you had lived in for the last 12 years.
Helpful Documents, Letter of Explanation: Start with a Letter That Includes the Most Important Details Below:
- Sale of your residence
- Your 12-year tenancy
- Circumstances of your hotel living
- Any efforts to secure permanent housing
- Proof of your 12-year residence: Include documents demonstrating a stable housing history.
- Proof of your 6-month current rental history: Include rent receipts or bank statements showing timely payments.
- Some lenders may want more history before approving a mortgage.
- Marine Corps Documentation: Include your military service and discharge documents to add stability and character.
Potential Lender Options
- VA loans: As a veteran of the Marine Corps, you have the option of the more flexible VA loans.
- FHA loans: FHA loans tend to accept non-traditional housing options more easily.
- Manual underwriting: Compensating factors such as good credit, good income, and a good down payment may lead a lender to manually underwrite your loan with less reliance on automated systems, depending on lender standards.
Steps to strengthen your application
- Try to wait until you have a full 12 months of current rental history, if that matches lender standards.
- Try to increase your credit score.
- Save for a larger down payment.
- Get pre-qualified with as many lenders as possible, including VA loan lenders.
- Consider using a mortgage broker to help you find lenders that work with special circumstances.
Your status as a veteran may assist you in your current situation. There are programs that directly serve the veteran population and help them overcome some of the housing issues they face. Contact a VA loan lender or mortgage broker to discuss your options and next steps.
https://gustancho.com/va-mortgage-loans/
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This reply was modified 2 weeks, 4 days ago by
Sapna Sharma.
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