A very nice thing about a VA loan is that is that VA home loan requirements allow active military or veteran to apply for a VA loan only two years after a Chapter 7 bankruptcy and one year after a chapter 13 bankruptcy. This is much faster than a conventional loan that requires four years after a chapter 7 bankruptcy to apply for a conventional home loan.
A few things to keep in mind when preparing to apply for a VA loan after a bankruptcy:
• The key date to start counting the two year period before you can apply for a VA loan is the date of the bankruptcy discharge, not the date of the bankruptcy file date
• If you had a mortgage and foreclosure as part of the bankruptcy, you will not be able to get a VA loan until two years from the date the deed of the property transfers out of your name. This is important because the bankruptcy discharge date may be long before the property is sold at foreclosure sale.
• Make sure you have NO late payments or ANY derogatory credit after the bankruptcy. If you
do you may get declined for a VA loan after the bankruptcy
• VA home loan requirements require you to reestablish credit after a bankruptcy. This means you should have lines of credit that you are making timely payments on such as auto loans, credit cards, student loans, etc..
• VA loan guidelines require you to have a 640 credit score to get a VA loan after bankruptcy. Give us a call if you need help raising your credit score
• VA loan requirements also set a maximum debt-to-income ratio of 41% post bankruptcy
So I hope the above gives you hope that you can buy a home
again after a bankruptcy. Please don’t hesitate to call us at 858-922-7899 or email us at email@example.com if you have any questions or would like to be approved for a VA loan in California.
Sr. Loan Officer (and VA specialist)