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Sticky situation with VA loan and dishonorable discharge

My wife and I served in the army for 5-6 years before she received a dishonorable discharge. The reasons involve a lot of grey area but now we're afraid it means we cannot get a home with a VA mortgage. It is our only affordable option. Our credit is both above 690 and we have less than $1200 debt totgether Total. Can we still go through VA? by harlowernke78463490 from Clay, Texas. Dec 18th 2014 Reply


Brad Cahoone (info@globalhomefinance.com)
#91 ranked lender in Texas - 1,041 contributions

Hello and good afternoon. If she received a dishonorable discharge she would not be able to qualify for VA financing. You would be able to qualify alone, but her debts would be counted against you as Texas is a community property state under a VA loan. The other options are Conventional with 3% down or FHA with 3.5% down that could be a gift and then her credit history is the only thing we would look at and not the discharge status. I am a Texas mortgage banker and broker and am happy to help in any way I can. Have a great day!Brad Cahoone - NMLS ID 184176 -972-724-3222x227- bcahoone@globalhomefinanceinc.com - Global Home Finance -NMLS ID: 316441

Dec 18th 2014
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Derrick Novakowski (dnovakowski@novalends.com)
#227 ranked lender in Texas - 5 contributions

As far as I know, the discharge must be anything other than dishonorable in order to make one eligible for the VA home loan benefit. You might want to check with the VA directly though. Assuming you don't have VA eligibility, there is another 100% financing option, similar to a VA loan, that you might qualify for. Feel free to call me at 214-455-1780 or email me at dnovakowski@novalends.com to explore this other option. -Derrick Novakowski, Sr. Mortgage Banker.

Dec 18th 2014
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,795 contributions

With a dishonorable discharge, she will not have VA benefits, but you both don't have to have benefits to purchase using VA.. So long as one of you have VA benefits available to you, then since your married, you both can be on the loan.. and a 690 score is within the acceptable range for approval so long as you meet all other eligibility requirements.. Try contacting a local mortgage broker and apply with them.. I would shy away from nationwide lenders, internet lenders or even the big box bank on the corner.. by dealing with someone local, they will be familiar with the local customs and intricacies associated with closing deals in your area.. this will make the transaction go much smoother.. also, your broker has access to numerous lenders seeking out the best terms for your scenario.. it's like shopping 20 lenders at one stop.. plus, brokers have much lower overhead than any of the other types of lenders which usually means lower rates, lower fees, and faster, more personal service and closing times.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Dec 18th 2014
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,224 contributions

Good advice from Brad, you'll have to do the mortgage in your name alone if you want to use VA financing. She could be on title but not on the mortgage application and would not be liable for the payment, it would not appear on her credit.

Dec 18th 2014
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Jason Vondrak (jvondrak)
#1 ranked lender in California - 1,690 contributions

If your wife received an honorable discharge she will not be eligible for VA benefits. However, you can try to qualify based on your eligibility alone.

Dec 18th 2014
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Linda Wintersteen (Linda123)
#64 ranked lender in Arizona - 1,250 contributions

i have a alternative way for military. do you have a dd214? that is all I need.. and since your credit is good, I have cash lines advances that help the military get funds within a 1 week or so.. email to yourloanpartnerforlife@live.com linda i do not need to verify income or bank statements .. and I can loan, depends on your credit up to $200,000

Dec 18th 2014
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Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,446 contributions

She technically is not eligible for a VA loan because of the dishonorable discharge. BUT if you either apply just on your own, OR, if you just use YOUR VA benefit, she can still be on the loan and you can still use her income to qualify. For VA loans in MN, WI, or SD - visit www.VA-IRRRL-Loan-MN.com

Dec 23rd 2014
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