VA Loans Ohio With Bad Credit And No Lender Overlays

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This BLOG On VA Loans Ohio With Bad Credit And No Lender Overlays Was PUBLISHED On April 20th, 2019

Ohio is one of the hottest states for home buyers.

  • All areas of Ohio, especially the Columbus housing market, remains to be a very lucrative market for both owner-occupant home buyers and real estate investors
  • Experts expect the Columbus area real estate market will skyrocket in 2019
  • Data show that construction is increasing and cannot keep up with the demand for housing
  • Housing inventory will remain scarce throughout 2019 even with increased construction
  • High demand, low inventory, low taxes are the formula for rising home prices
  • Columbus, Ohio is the 14th largest city in the United States
  • The city is attracting many active duty and retired members of the United States Military
  • Many veterans of our armed services see Ohio as their forever home and are migrating to this state in record numbers
  • Columbus, Ohio is one of the fastest growing cities in the United States with a population of 9 plus million residents
  • Many cities and counties in Ohio have seen an explosive growth year after year since 2012
  • It is expected to get much higher
  • In this blog, we will discuss qualifying for VA Loans Ohio with bad credit and no lender overlays

Gustan Cho Associates at Loan Cabin Inc. is one of the few direct national lenders with no overlays on VA Loans.

VA Loans Ohio Versus Agency Overlays 

VA Loans is the best owner-occupant mortgage loan program any home buyer can have.

  • However, only active-duty retired, and/or eligible surviving spouses of eligible veterans can qualify for VA Loans
  • Our government created and implemented VA Home Loans to reward our members of the United States Armed Services
  • The Department of Veterans Affairs (The VA) is the government agency that sets mortgage guidelines
  • The VA is not a lender and has nothing to do with the origination, funding, or servicing of VA Loans
  • The VA acts as a guarantor for private lenders who originate and fund VA Loans
  • The VA will partially insure and guarantee any losses due to defaulting borrowers due to foreclosure
  • Due to this government guarantee, lenders can offer our veterans VA Loans with 100% financing and no down payment at very low mortgage rates

There are two separate types of VA Mortgage Guidelines:

  1. Agency Guidelines
  2. Lender Overlays

Typical Lender Overlays Required By Lenders

All lenders require their borrowers to meet minimum agency VA Guidelines.

  • However, most lenders will have additional VA Guidelines that is above and beyond the minimum VA Guidelines which are called lender overlays
  • For example, the VA does not have a minimum credit score requirement as long as the borrower can get an approve/eligible per automated underwriting system (AUS)
  • However, a lender may require a 640 minimum credit score as part of their overlays
  • Gustan Cho Associates Mortgage Group recently had a borrower with a 545 FICO and 60% DTI get an approve/eligible per automated findings
  • We approved, processed, underwrote, and closed this VA Loan
  • However, most lenders will have denied this borrower if they did not have a 640 FICO and a debt to income ratio less than 50% DTI
  • Gustan Cho Associates at Loan Cabin Inc. is a direct lender with no overlays on VA Loans Ohio
  • We only go off the findings of the automated underwriting system

Here are typical VA Lender Overlays Imposed By Lenders:

  • Minimum credit score requirements: The VA does not mandate a minimum credit score requirement
  • Maximum debt to income ratio cap: The VA does not have a maximum debt to income ratio requirement
  • Pay off outstanding collections and charge off accounts: The VA does not require borrowers to pay outstanding collections and/or charged off accounts
  • Manual Underwriting: The VA allows manual underwriting on VA and FHA Loans
  • VA Loan During Chapter 13 Bankruptcy Repayment Plan: The VA allows borrowers to qualify during an active Chapter 13 Bankruptcy Repayment with Trustee Approval
  • Waiting Period After Chapter 13 Bankruptcy discharged date: There is no waiting period after a Chapter 13 Bankruptcy discharge date as long as it is manual underwriting

Qualifying For VA Loans Ohio With Direct Lender With No Overlays 

Over 75% of our borrowers at Gustan Cho Associates are folks who could not qualify for home loans at other lenders due to their overlays. Borrowers who need to qualify for VA, USDA, FHA, Conventional Loans with no lender overlays, please contact us at 262-716-8151 or text us for faster response. Or email us at gcho@loancabin.com. Gustan Cho Associates at Loan Cabin Inc. are national direct lenders with no overlays on government and conventional loans. We are available 7 days a week, including evenings, weekends, and holidays.

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