Qualifying for any home loan following a foreclosure is difficult to say the least; however for veterans who have suffered a foreclosure, there is hope. The guideline for a VA home loan is after two years, the foreclosure may be disregarded. That does not mean that every veteran who has gone through a foreclosure 2 years or more ago will be approved. The underwriting is naturally stricter because of the fact that a prior foreclosure has occurred. The last thing the VA, and the VA lender want to see is the veteran in the same situation again.
I Have A Prior Foreclosure; Can I Get A VA Home Loan?
Getting a VA loan after foreclosure is possible, but applying for one is best done through a VA loan specialist, who understands what an underwriter looks for when considering whether or not to approve the new loan. As previously mentioned, the requirements are somewhat more restrictive to obtain a VA home loan after foreclosure than they would normally be. Following are some of the things your VA loan specialist will consider when determining if you can qualify after foreclosure.
- Has 2 years elapsed since the foreclosure was finalized?
- Is there any negative credit since the foreclosure occurred?
- What is the debt to income ratio with the new housing payment?
- Has the veteran demonstrated the ability to pay rent, and is the rent comparable to the new housing payment?
- Is the income stable, and likely to continue?
- What were the circumstances that led to foreclosure, and what has changed?
- Available assets, (savings, checking, retirement funds, etc.)
- Credit scores (they are a risk indicator of how you handle your current obligations)
These are examples of some of the primary factors that are taken into consideration. Situations vary, and we understand there are special circumstances that may need to be evaluated in determining eligibility for a VA home loan. It is recommended you contact us, speak to a VA loan expert, and see if we can help you. We understand how stressful and embarrassing going through a foreclosure was, and how important a step it is to own a home again to recover from it.
Due to the increasing number of veterans that have suffered foreclosure, we found it necessary to establish a group who specialize in assisting veterans who have gone through this life changing event, and help them get approved to buy a home. Counseling with one of our VA specialists is easy, calling our toll free number is the best option, or to be contacted by one our VA specialists who specialize in assisting veterans with prior foreclosure, just click here.
Ready to get started?
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.