VA Loans with Bad Credit
Videos feature Tim Lewis, VA Loan Team Manager, NMLS #157603.
How does a prior bankruptcy affect my ability to qualify for a VA home loan?
In the case of a prior bankruptcy, the VA guidelines are specific. If a borrower has filed Chapter 7, then he or she cannot qualify for a VA loan for at least two years after the discharge date of the bankruptcy. The borrower will need to explain the circumstances under which he or she filed Chapter 7. And, he or she must have re-established satisfactory credit and have stable income that qualifies.
If a borrower has filed Chapter 13, and is still paying the debt, he or she may still be considered for a VA home loan as long as the payments to the court have been made consistently for one year. A court trustee may need to give written approval. The borrower may also need to explain the circumstances under which the bankruptcy was filed. And, like Chapter 7 filers, a borrower in Chapter 13 must also have re-established good credit and have a stable job.
Lenders can require a longer waiting period, such as three or more years after discharge, for any type of bankruptcy.
A VA loan professional can provide more information about how your prior bankruptcy can affect getting a VA mortgage.
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