The good news is you do not have to wait long to get a VA home loan after a Chapter 7 Bankruptcy in California. You can apply for a VA home loan two years after the bankruptcy discharge. The key is making sure you know the actual discharge date of your bankruptcy, not just the date it was filed. It is two years after the discharge date that you have a chance to qualify for a 100% financing VA loan using your VA home loan benefits.
An additional item to keep in mind when you apply for a VA loan in California after a bankruptcy is that you cannot have any derogatory credit items after your bankruptcy. This means that you need to be perfect with any items that report to your credit after a bankruptcy. You cannot have any late auto loan payments, student loan payments, credit card payments and items like that. Additionally, you can’t have any collections or judgment show up after that bankruptcy. VA financing is willing to lend to active military and veterans after a bankruptcy, but they want to see that you have managed your credit well after the bankruptcy.
VA home loan requirements also like to see that you have re-established credit after the bankruptcy. So try to get some lines of credit such as auto loans or credit cards reporting to the credit bureaus. You can often get a secured credit card from your the bank you have your checking account with and just charge a few small items you need anyway and pay them off at the end of the month. But make sure you keep these accounts active and reporting. This will show you have re-established credit and are making payments on time.
So the great news is you can get a 100% VA loan financing to buy your dream home in California only two short years after a Chapter 7 bankruptcy. Send me an email at homeloan8@gmail.com or call 858-922-7899 if you have any questions or would like to be approved for a VA loan in California.
And below are some of the most recent benefits of VA home loans this year:
- VA financing is still 100% zero down and has not changed despite all the other mortgage loan programs getting more strict and requiring down payments
- VA home loans do not have monthly mortgage insurance (unlike FHA and conventional loans with <20% down that do)
- VA loan limits go up to $1 million with zero down in the San Jose and San Francisco area. The max VA loan in Los Angeles and Orange County is $697,000 with zero down. And the maximum VA loan in San Diego County is $537,750 with zero down. You can even go above these VA loan limits in California with a very small down payment.
- Veterans that receive any disability pay get the VA funding fee waived
Regards,
Rob Chomentowski
Sr. Loan Officer (and VA loan specialist)
858-922-7899
homeloan8@gmail.com
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