There are many potential VA home loan borrowers out there that have had significant credit card debt and have entered into what is called “debt counseling “to help manage their credit card debt and get it paid off in a timely manner. These programs can also sometimes be referred to credit counseling or debt consolidation programs. Often what happens is debt counseling company will work with a person to combine all their credit cards into one payment that is set up with the goal of getting all the cards paid off over a certain time period. This article discusses how VA home loan lenders in California consider VA home loan borrowers who have debt counseling appear on their VA loan credit reports.
When a person goes into debt counseling, their credit report will show a notation under each account that is in debt counseling. This is how the VA loan underwriter will see that the potential VA borrower has accounts in debt counseling. The VA home loan requirements for borrowers in debt counseling are the following:
- Borrower must have been in debt counseling at least 12 months
- Borrower must have not missed any payments in the last 12 months in debt counseling
The VA borrower will have to provide documentation that they have complied with the above VA loan requirements regarding account in debt counseling in order to qualify for a VA home loan in California. Additionally as in all VA loans, the payments on the accounts in debt counseling will be included as debt in the calculations for VA loan approval.
I hope this article helps give you clarity on getting approved for a VA loan in California if you are currently in debt counseling. Please send me an email at homeloan8@gmail.com or call 858-922-7899 if you would like to be approved for a VA loan in California or if you have any questions.
Here are some of the latest up to date highlights of VA home loans in California:
- VA home loan rates are still near sixty year lows
- VA loan limits for 100% financing in California go up to $1 million in San Francisco, San Jose and the general Bay Area. VA loan limits in Los Angeles and Orange County go up to $697,000. VA loan limits in San Diego go up to $537,750. VA home loan borrowers can go above the VA loan limit by putting down 25% of the difference between purchase price and the county VA loan limit
- VA home loans are 100% financing and require NO down payments
- VA home loans do not have monthly mortgage insurance like conventional or FHA loans
- VA lenders waive the VA funding fee for veterans that receive disability pay
- VA loan credit scores do not have to perfect, VA lenders can sometimes lend down to a 600 credit score. Call us if you think you have bad credit and we can assist helping you raise it as we are experts
So feel free to send us an email at homeloan8@gmail.com or call at 858-922-7899 if you would like to discuss getting approved for a VA home loan in California.
Rob Chomentowski
858-922-7899
Sr. Loan Officer (and VA specialist)
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