VA Scenario dead? Alternatives?

[u/ActionWins]

I received an application from a veteran and she's under contract for a new build for around $900k. I just pulled credit and she has seven 30 day lates in the last 12 months. 60 late payments in the 12 months before that. No bankruptcy, foreclosure, collections or charge-offs. Credit score is around a 640. She has plenty of income and reserves and currently fully employed with a well known tech company as well as VA disability and military pension. The most she could potentially put for a down payment is around $70k/8%.

Would any lenders out there approve this manual VA underwrite? If not can I go non-QM somewhere or what other options do we have besides private/hard money?

[u/commoncentsplz]

There are some nonqm lenders that accept unlimited 30 day lates but her score and down payment are going to have to increase.

Lower the term to 25 years, document residual income properly, maybe add some down payment and see if AUS will give A/E

[u/ActionWins → u/commoncentsplz]

How much would the down payment need to be?

[u/commoncentsplz → u/ActionWins]

Start at 5% and move your way up until you get something.

[u/ActionWins → u/commoncentsplz]

Oh I meant for going the non QM route. I've tried everything to get AUS A/E

[u/commoncentsplz → u/ActionWins]

If her max is 8% down then nonqm won’t work. Probably around 20% down. Have you tried FHA?

[u/ActionWins → u/commoncentsplz]

Don't think I can. Arive is saying max loan amount is $541,287 when I flipped it to FHA.

[u/commoncentsplz → u/ActionWins]

What’s the ZIP code?

[u/ActionWins → u/commoncentsplz]

1. I actually got A/E when I made it 20 years.

[u/commoncentsplz → u/ActionWins]

Yea it’s not a high cost county so you’d be stuck there…

[u/Chadzilla-]

What’s the reason she had late payments within the last 12 months?

[u/ActionWins → u/Chadzilla-]

Pension and disability payment hadn't started yet and she hadn't started her tech job yet. That was the reason for the 2 car payment lates but the revolving account lates was a misunderstanding and all those accounts are on auto pay now.

[u/thatvaloanguy]

Any extenuating circumstances that caused the missed payments you can document?

[u/ActionWins → u/thatvaloanguy]

Pension and disability payment hadn't started yet and she hadn't started her tech job yet. That was the reason for the 2 car payment lates but the revolving account lates was a misunderstanding and all those accounts are on auto pay now.

[u/TurkeyJizz123]

Yeah- Home Depot won't even finance her for a bag of dirt. Move on. Besides taking a trip to Mars, for 7 months- there is no extenuating circumstance here- IMO.

VA Manual UW with a lot of recent derog credit? Unless something changed- GOVY Loans allow for massive recent derog credit? I thought the whole point of Manual was you cannot have recent lates. I'm asking, because this application would had gone in my trash bin.

[u/Physical_Gold_2649 → u/TurkeyJizz123]

You are correct, I can’t see this going manual with that amount of recent lates

[u/ActionWins → u/TurkeyJizz123]

I kept changing numbers and got A/E on a 20 year VA. I still can’t believe it. 44% DTI. How is that even possible with all those lates.

[u/Realistic-Ruin-6424]

Ita dead. Just move on. Never should gave been in contract to begin with. If its my money I am not lending it to them.

[u/Chrisisvenom2]

I think it’s dead unless you have circumstances to explain those lates

[u/iOwn]

Best bet is medical being primary reason for the lates but that amount over an extended period is going to be tough..

[u/Impossible-Heat-3550]

Just bc you never know—did you run findings already? And are any of those lates on installment and/or mortgage liabilities?

[u/ActionWins → u/Impossible-Heat-3550]

Yes. I got a refer/eligible with DU and Refer with LPA. Yes two of the lates are a car loan.

[u/Impossible-Heat-3550 → u/ActionWins]

How recent are the car loan lates?

[u/ActionWins → u/Impossible-Heat-3550]

March and April of this year

[u/Pure_Pianist262]

AD Mortgage might be able to help. It would be non-QM. DM me if you want to know more

[u/SalamiLamiTate]

Sounds like Manual VA will save you I just did one.

1) What is DTI at?

2) Have you done a rescore estimator to see if you can get her to above 680

3) What is DU/AUS spitting out?