One item on my credit score, what can I do to get qualified for my VA loan?

Dondon, yes we can do a VA loan with a 630 middle score. What did the local bank say? I really wish we could have a conversation as I do loans like this all day long.

Unfortunately a $8000 repossession/collection will keep you from being approved in all traditional lending programs. You will need to address this derogatory account. I would also check the reporting balances on all other credit accounts, and make sure they are below at 40% of the maximum credit limit, this will at least help you maximize your credit score while the repossession still shows.

i do work ci iI do have a very good realtionship with a underwriter in your state.. please email me at yourloanpartnerforlife@live.com linda she is the best in the business!!!

Paying off the repo will have little immediate affect in your favor on your credit score. Also, most lenders will not allow an unpaid judgment at the time you close your new purchase loan. Short answer: pay it off (at discount, if possible), and wait.

When you co-sign for a loan, you are agreeing to take on the financial oblations of the loan. So, unfortunately, regardless of the agreement you had with the person you co-signed for, the bank views you as responsible for making the payments if they cannot. With your current credit score it will be very difficult to get financing for a mortgage. Your best option is to pay off the outstanding debt of the car loan - or get the person you co-signed for to pay off this debt - to help build your credit back up. Good luck!

Unfortunately, you've just experienced the danger of co-signing. You are 100% responsible for the loan. The repo in and of itself, you may be able to get around down the line without paying it off, but the credit score is going to prevent you from getting financing on a VA loan until the middle score gets to at least 620. www.VA-IRRRL-Loan-MN.com

Hi Dondon,I'm sorry to hear about your circumstances. Unfortunately, you probably won't like my answer. When you cosign for a loan, you are taking as much responsibility for that loan as the other person is and in the case of a derogatory item, just as much blame. I don't know of any lenders right now who are actually lending down to 591. FHA has some guidelines that state credit is OK down to 580, but no lender will actually write that loan. I haven't seen anything below 620 get approved in years, so that is the number to shoot for. Now a little good news. When a car is repossessed, the car is sold at auction and the proceeds are used to pay the loan balance. If the proceeds were enough, you may not owe anything. If they were not, you owe the difference, known as a deficiency balance (unless the $8,000 you refer to is the deficiency balance, not the loan amount)You, or better yet, the person who actually needed the loan, will have to settle any deficiency to get your credit headed back in the right direction. The item will still be on your credit for 7 years, but it won't actively be harming you and the 7 year clock will start when you settle the item completely. Here is a good article on dealing with the effects of a repossession:http://www.nolo.com/legal-encyclopedia/deficiency-balances-after-repossession.html

Hello Dondon,It is unfortunate that you co-signed for someone who could not follow through with the idea of acquiring a loan and then the obligation of paying it back. Hopefully this is the last person you try to help in this manner.There is a possibility that you can get a VA Loan with this on your credit as a repo but that possibility is at least 3-4 years down the road if it is not settled. You may want to speak to the creditor and see if they would be willing to do a settlement form much less than the $8000.Keep in mind that if a settlement takes place it will not erase the recent late payment and you would really need one year without any late payments to be eligible for a VA loan. I have done many VA loans in NC nad SC for people with less than perfect credit. The key is to make sure you have open lines of credit that report to all three bureaus and make sure the credit is used conservatively.Please call with any questions.Ken Baltes704-684-2117