Va Home Loans and Guidelines For Bankruptcy and Foreclosures

What do you want of Home Loans After Bankruptcy ?.

I receive a lot of Va loan questions in regards to bankruptcies (Bk) and foreclosures. Most of the time the questions are determining how long a borrower has to wait after their bankruptcy before they come to be eligible for a Va loan? Or is there whatever they can do while they wait to help their chances of getting approved for a Va loan once the waiting period is up. So let's dig in because as of right now the Va underwriting guidelines are much more flexible than conventional or Fha loan guidelines.

Chapter 7 Bankruptcy

Home Loans After Bankruptcy

First, a episode 7 bankruptcy involves a complete removal of debtors. Once the appeal is file and proper by the court and the Bk is finalized the borrower is released from liability from the creditors. Generally, with a episode 7 bankruptcy the Va underwriting guidelines need a 2 years waiting period from the removal date of the bankruptcy before financing becomes available. There are, however, safe bet uncontrollable circumstances such as healing conditions or job loss that allow for financing 1 year after the removal date but these are very rare. To dissimilarity this with conventional guidelines at the time of the article Fannie Mae is now requiring a 4 year waiting period after a episode 7 Bk.

Chapter 13 Bankruptcy

A episode 13 on the other hand is called a wage earners plan. A trustee is appointed from the court and a repayment plan is negotiated. A veteran may unquestionably be eligible for a Va mortgage while in the episode 13 bankruptcy; but will need to have at least made 12 on time payments and have approval for the loan by the court trustee. Also, after the episode 13 is done the veteran borrower is eligible immediately. Fannie Mae requires a 2 year waiting period after the discharge.

Foreclosure

The Va guidelines state the foreclosure period corollary the same rules as the episode 7 Bankruptcy. Basically, the veteran borrower needs to wait 2 years. Fannie Mae requires a 5 year waiting period now after the completion of the foreclosure, ouch.

Tips for after a Bankruptcy

As a top Va lender that has dealt with their fair share of bankruptcies we've put together a few tips that borrower can put to go use.
I strongly suggest after the bankruptcy has been discharged that you mail in a full copy of your removal paperwork with all of the proper schedules the three prestige bureaus Equifax, Experian and TransUnion. Often time some of the accounts included in the bankruptcy won't reflect that accurately. I also suggest you start by pulling your prestige at least once a year from each of the nationwide buyer prestige reporting companies. Keep track of what's gone on and make sure there are no inaccuracies by the time you are ready to apply for a Va loan. In addition, if you don't have any remaining creditors after your bankruptcy we strongly suggest reestablishing your prestige if you have not already done so. Sometimes a borrower with a lack of prestige is just as hard as approving borrowers with poor credit. And of course always, always, make your payments on time!

Of course the Va loan bankruptcy guidelines could turn or be amended in the hereafter but so far most of the Va guidelines have stayed the same.

Va Home Loans and Guidelines For Bankruptcy and Foreclosures