VA Home Loans Two Years After a Chapter 7 Bankruptcy

A bankruptcy is considered a serious blemish on your credit report by mortgage lenders. Most types of home mortgage loans require anywhere from a 3-7 year waiting period following the discharge date for you to be considered for financing. Even after that waiting time, there is no guaranty you will be approved. The guideline for a VA loan is that after 2 years, the bankruptcy may be disregarded.

This means that a VA lender does not automatically disqualify a veteran for a home loan because of the prior bankruptcy. The lender must evaluate the veteran’s current circumstances to determine if he or she is eligible for a VA home loan. The requirements are naturally somewhat stricter, as it is the lenders responsibility to make sure the veteran is not put into a financially difficult situation again. There is hope, the VALoanPlace.com loan specialists have helped many veterans purchase or refinance a home following a Chapter 7 bankruptcy.

A few of the major factors we will take into consideration when reviewing your application include:

  • The circumstances that caused the bankruptcy, and what has changed.
  • The veteran’s current income, and is the income considered stable?
  • The veteran’s current monthly obligations as a percentage of their total income.
  • The credit history of the veteran since the bankruptcy, and is there any re-established credit, or new derogatory credit.
  • Is there verifiable rental history available where the veteran currently resides?

These are just a few examples of what an underwriter will look for when reviewing your eligibility. You should have your situation evaluated by a VA Home Loan specialist to determine if you are qualified to obtain a loan. No matter what caused your bankruptcy, (divorce, health problems, loss of income, etc.), purchasing a home or refinancing your present home loan that has unfavorable terms is a very important step to your financial recovery.

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Call and speak to one of our VA loan specialists today. The toll-free number is (866) 704-2826. You can also complete our safe, secure online request form. There is no obligation to you, and no cost to apply. You will be contacted by VA loan specialist who will assist you with each step from start to finish.

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