VA Loans after Foreclosure and Bankruptcy
If you are a veteran, active-duty service member, the surviving spouse of a veteran, or otherwise qualify for a VA loan, you will be pleased to learn that you may still qualify for a VA loan even if you have experienced a prior foreclosure or bankruptcy. This is good news for our service members and their families. CityWorth Mortgage is proud to be your local and experienced VA loan lender.
VA loans after foreclosure
Many times, people experience foreclosures for reasons beyond their control – we understand that, as does the VA. A previous foreclosure doesn’t have to keep you from moving forward with your life or keep you from using your VA home loan benefits.
There are three types of foreclosures: a standard foreclosure by your mortgage lender, a deed-in-lieu of foreclosure, and a short sale. All have a negative impact on your credit and can lower your credit score by anywhere from around 90 points to as much as nearly 200 points, and homeowners who experienced a foreclosure of an FHA mortgage loan may need to wait for a period of three years before they will be eligible for a VA mortgage loan. Because of this waiting period and other factors, many veterans we work with who have had prior foreclosures believe that a foreclosure ends their chances of qualifying for a VA mortgage loan in the future. We’re happy to let veterans and their families know that, despite a prior mortgage default, they are likely still eligible for a VA loan in the future.
VA loans after bankruptcy
At CityWorth Mortgage, we know that people experience bankruptcies for many different reasons often outside of their control, like medical debt. You’re more than just a number to us, and no matter what your credit history or credit profile is, we’ll work with you to help you qualify for a VA loan. If you declared bankruptcy in the recent past and per the VA’s rules you are too close to the bankruptcy to apply for a new mortgage loan today, we will work with you to better your credit so that when it comes time to apply for a VA loan mortgage, you’ll be in the best position possible to qualify for the lowest rates and most competitive loan terms.
In general, you’ll need to wait about one to two years after the discharge of your bankruptcy before you’ll be able to qualify for a VA mortgage loan. This may vary by the type of bankruptcy you filed (i.e., chapter 7 or chapter 13) and your credit profile, income, and assets.
Getting your credit back in shape and your credit score healthy again following either a bankruptcy or a foreclosure (or both) is the key to qualifying for a mortgage in the future. Call us today to learn more about our VA mortgage loan programs and to speak to an experienced VA home loan expert.