Your credit scores are fine for a VA mortgage and would enable you to get a VA 30 year fixed mortgage at 3.25% with no points.
As far as how much you would qualify for, it depends on a couple of things.
1) What type of loan do you have on your home in Texas? Is it a VA mortgage? IF so, we would have to subtract the amount of your entitlement that was used on that home which would affect how much you could borrow for a new VA loan without putting money down. Another thing that will come into play is the VA county loan limit. Here's an example: Under the 2nd tier or bonus entitlement rules, your entitlement is basically 25% of the VA county loan limit and in several counties in VA that limit is $625,500 so your entitlement would be $625,500 X 25% = $156,375 but in a county with a loan limit of $417,000 your entitlement would be $104,250.
2) What is the reason for the move? This is important because it could affect whether or not you can count the rental income from your home in Texas in order to offset that mortgage payment UNLESS you have a history of collecting rental income that is documented on your tax returns.
If you relocated to VA for work then the rental history doesn't apply and we can simply provide a copy of the lease agreement and proof that you collected a security deposit and the first months rent.
3) With your scores and the fact that the collection is over 5 years old, there is a very good chance that we won't have to even address it.
Please feel free to contact me for more information or help. You can also find info on my VA Mortgage website by clicking the link below.
Senior Mortgage Banker
Peoples Bank & Trust