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 period, 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 Florida Veterans Home Loans 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.), the ability to purchase a home or refinance your present home loan is a very important step to your financial recovery. A VA home loan from Florida Veterans Home Loans can make that dream a reality.
Get Started Today With Your VA Loan Request!
To speak with Chris or one of his team of VA Home Loan specialists about taking the next step toward prequalification, call us at 866-704-2826 or complete our quick-and-easy request form. We'll be happy to contact you and discuss your next steps.
We look forward to assisting you.
By submitting your request, you are not obligating yourself. You are simply asking to be contacted by one of our talented specialists who can answer your questions. Florida Veterans Home Loans works exclusively with military families and we have helped people all across Florida understand the VA loan process.