tdiu Ssdi And Va Comp Used As Income

[roivett]

Hello All: I am currently on SSDI and 60% sc. I fully expect to go to TDIU 100% soon, (not so sure about P&T). I want to start to repair my credit and hopefully buy a house. I expect a 2 to 3 year process. My question has to do with using VA compensation and SSDI as income to qualify for a home purchase. Do mortgage companies or banks use those as sources of income? Has anyone had experience in that regard?

Thanks,

RWS

[Jazona]

RWS,

Just so happens I went to my bank a few months back to prequalify for a home loan. Not only do they accept both as income, they welcome it as guaranteed income. Apparently they'd never heard of the VA reevaluating ratings.

Good luck!

jaz

[donews]

Yes, loan & mortgage companies love people that have ssdi or va compensation and even better if they have both.

In their eyes, it is a guaranteed stream of income that will continue until the vet is gone.

No they do not think about the possibility of reevaluation of ratings, they just see the dollar signs.

Probably even more so now than when the economy was a littel more stable.

[Pete53]

Many overlook that our income is gross and net which makes a big difference. We don't have the expense of Income Tax and paying Social Security.

The Mortgage Company will look favorably plus you should try for a VA Loan as it guarantees the Loan which makes menders happy. Not so much for sellers and brokers.

Good Luck

[Ricky]

RWS,

Just so happens I went to my bank a few months back to prequalify for a home loan. Not only do they accept both as income, they welcome it as guaranteed income. Apparently they'd never heard of the VA reevaluating ratings.

Good luck!

jaz

yes all financial companies (banks etc...) will use it as it is a sure thing. Pete made a good point. Use the VA loan process. If you only have bad credit (vs BR) then normally all that is needed is one good credit line that has been paid on time for a total of 12 months along with rental receipts indicating a 12 month on time payment record of your rent. You will also need to insure that any charge-off's or tax liens have been paid. This sounds like a lot but it is nothing compared to attempting to qualify for a regular mortgage. Another option is rent to own. This will allow you to build up a down payment to use towards the purchase of the home. Also when you begin to use your option to purchase the loan is considered to be a refi vs a new loan. Refi loans are easier to qualify for. However, the VA home loan process is by far the best for all vets who have experienced a few years of bad luck in the credit market. jmho.

[jbasser]

You can also get a VA loan with zero out of pocket as well as pay no PMI or private mortgage interest. It will save you some money.

[ruby]

I am currently refinancing my home all I get is VA at this time and they love to see the guaranteed income. My roommate however is working with a steady income.

As far as cleaning up your credit, you don't necessarily need to do that you need to find a direct lender, some don't make you pay any charge offs. You have to pay any judgements that can effect a lien on your property.

Also if you pay on stale debt it can hurt your FICO scores, read all you can before you repair your credit.

If something is more than 4 yrs old don't pay it its not really hurting your score, if you pay it, FICO will look at that as being fresh delinquency and it will lower you score. If its between 2-4 yrs old it has minimal impact. Only those that are less than 2 yrs old hurt your score significantly.

If you are in the less than 2 yrs old call the company and ask if they can reage the account--this will bring the account current on CR after 3 on time payments--then don't ever be late again. Tell them what you can really afford to pay, don't let them push you into paying more then what is comfortable.

Edited April 9, 2008 by ruby