VA Bankruptcy – Foreclosure

VA Mortgage Lender Approvals After Foreclosure, Bankruptcy, or Short Sale?

The Short Answer Is Yes! The basic VA Mortgage Lenders requirements include:

  • Minimum 550 middle credit score and re-established credit or proof of timely payment history.
  • 2 years’ minimum must pass from date of short sale (2 years after the title/deed transferred out of your name)
  • No Late payments in the last 12 months on any debt (including no collections and no judgments reflected on your credit within the last 12 months.
  • Stable Predictable Verifiable income- Same line or type of work for 2 years minimum.
  • No New collections, late payments or new delinquency of any kind including after the date of short sale, bankruptcy, or foreclosure,
  • No NFS- No non sufficient funds in your checking account within the past 60 days.
  • 2 years- A minimum 2 years must pass from chapter 7 bankruptcy discharge.
  • 12 months- A minimum payment history must pass from filling chapter 13 bankruptcy. Chapter 13 complete discharge is not required. The borrower must get prior approval form the chapter 13 bankruptcy trustee to purchase a home.
  • Please note each VA mortgage approval is subject to other underwriting requirements and determined on a case by case basis.

Most VA mortgage applicants don’t have trouble with finances bankruptcy, foreclosure, and short sale these days. Getting into your dream home with an VA mortgage is still possible when you use the right government VA mortgage lender to help you.

Although the private VA mortgage lenders are restricting their new loan production levels, and there are new fees for the GSE’s, the United States Government is currently guaranteeing VA mortgage loans for VA mortgage applicants of all credit types. Currently there is a VA No credit score VA mortgage program and a Bad credit VA mortgage lender that allow credit scores as low as 550! These VA mortgage approvals are provided to all Americans over the age of 18 who meet the underwriting criteria set forth by the Government and any VA mortgage lenders.

VA mortgage loans can be used to remodel, refinance, or purchase a home. This type of loan is available even with a prior foreclosure, short sale and chapter 7 or 13 bankruptcy.

VA mortgage applicants still qualify even if in a chapter 13 bankruptcy. After all VA mortgage approval will need to be granted from the bankruptcy attorney. The VA mortgage program is designed to help people, especially those who may have had a hard time in the past. These VA mortgage loans are available for single modular, manufactured homes, and multi family homes, VA approved Condos, and even rural farm property. Please note VA mortgage loans are not allowed to be used with industrial property (properties intended for commercial business use with no dwelling or residential component).

The VA mortgage Loan is designed to help people get established or re-established in a home of their own. The idea is that these VA mortgage loans help create an economy that will employ workers in the construction, home improvement, banking and mortgage industries as well as provide a roof over the heads of Americans.

The various agencies insuring or guarantying loans such as an FHA Home Loan, USDA Loan or VA mortgage Home Loan. Several options are available so it is recommended that you speak with a  mortgage originator to determine which loan is best for you.

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