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After a bankruptcy or foreclosure, getting approved for a VA home loan is never simple. As a U. There are a few options available to you whether you’re a veteran or a service member. Unfortunately, many of those doors will be closed if you’ve previously experienced financial difficulties. Fortunately, regaining eligibility for your VA home loan benefits after bankruptcy is still possible with a VA approved lender like HomePromise after your discharge date or the so-called seasoning period.
You will find all the information you require in this article to restart your home-buying (or refinancing) aspirations. A new and exciting chapter awaits.
What Are VA Mortgage Loans?
The United States Department of Veterans Affairs, also known as the VA, is a government organization that has existed since the 1940s, although changes have unavoidably been made over time. The VA manages the VA mortgage loan. It offers financing options without a down payment in order to assist eligible spouses, active duty military personnel, and veterans with the purchase of real estate.
The VA program allows qualified candidates to purchase a variety of real estate types, including single-family homes, condominiums, and multi-unit buildings. Over the years, hundreds of thousands of veterans have taken advantage of the program, which provides financing of up to 100%.
Basically, regardless of your personal circumstances, the VA loan program is one to consider if you have military experience when looking to buy a home.
How Does A Bankruptcy Affect Your VA Loan?
Nothing can change the fact that a prior bankruptcy will adversely affect your financial situation in a number of ways. While there are many other important factors to take into account, FICO credit score studies show that filing for bankruptcy can cause a 240 point drop in your credit score on average and foreclosures a 120 point drop. This can limit your options in a variety of circumstances, particularly when it comes to financing the purchase or refinancing of real estate
Many conventional forms of borrowing will be prohibited, and even VA loans may be challenging to obtain. Although the situation is undoubtedly painful, the option of VA loans may still be available.
Even if you haven’t had those prior financial issues, there are a number of requirements that must be met in order to qualify for a VA loan. The type of bankruptcy that was filed will have an impact on the situation when bankruptcy is involved.
If it was a Chapter 7 bankruptcy, you’ll have to wait two years after discharge before applying for a VA loan. Moreover, you’ll need to compose a full explanation of why the bankruptcy happened and show that you now have financial stability. While the credit score doesn’t need to be perfect, showing that the damage has been repaired is important too. But, in some cases, a VA loan can be made if you had a bankruptcy only one year ago. The reason for the bankruptcy will influence whether this is possible. If it can be shown that your bankruptcy was due to extenuating circumstances beyond your control then some VA lenders may approve you for a VA loan even with a Chapter 7 bankruptcy discharged one year ago.
For Chapter 13 bankruptcy cases, you’ll still need to give a full explanation of the situation. However, rather than waiting two years from discharge, there is no waiting period on a Chapter 13 bankruptcy after discharge.
You will almost certainly be approved for a VA loan once those requirements are met. After serving your country, you should be given the same opportunities as other veterans, so this gives you what you deserve. You could move into your new home much sooner than you ever imagined possible, provided the application is handled correctly by an experienced VA lender.
What Can You Do To Prepare To Get A VA Loan?
There are a few steps you can take to prepare if applying for a VA loan is something you’re considering. This checklist should help greatly:
If you take action on each of those points, your chances of obtaining a VA loan after bankruptcy will be higher than ever. In addition to assisting with Chapter 7 or Chapter 13 bankruptcy cases, it typically strengthens your loan application.
Getting Your VA Loan
Getting ready for a VA loan is one thing, but applying for one in the most effective way is quite another. Finding the best VA lender to make those homeownership dreams a reality is undoubtedly at the top of the list of questions that need to be answered.
Prior to submitting your loan application, you must select a VA lender who can assist you in getting the VA mortgage you require. Selecting one that will require you to wait 3, 4, or 5 years after discharge is not the right choice. Meanwhile, you’ll want a lender who can both secure the lowest interest rates and is supported by the government’s VA program.
Knowing that your data is protected throughout the process while receiving quick, convenient service is always advantageous. But perhaps most importantly, you should be aware that the application is backed by a group of professionals who can assist you at every stage, including by providing assistance with bankruptcy recovery.
You can count on HomePromise to provide all of the above as well as customized service from a team that is aware of your unique circumstances. We have your best interests at heart because we have bankruptcy experience and are veterans. Our service is the only one you’ll require to obtain a VA loan because we offer free estimates and no upfront costs. That’s true whether you’ve had financial difficulties or not.
As a U. S military veteran, you deserve to lead a comfortable life. By purchasing a property or refinancing your current home with responsible VA financing, you can create a solid home situation regardless of past financial difficulties, including bankruptcy.
Our team is more than willing to help you at every stage of the process if you need assistance financing your home after bankruptcy with a VA loan. [/et_pb_text][/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4. [et_pb_blurb title=”VA Debt Consolidation Loans & Military Debt Consolidation” =”https://newtheme.com” custom_padding=”|||” global_colors_info=”” custom_padding__hover=”|||”] homepromise. com/wp-content/uploads/2022/02/117426603_m. jpg” alt=”VA Debt Consolidation Loans & Military Debt Consolidation” _builder_version=”4. 18. 0″ _module_preset=”default” header_font=”|700|||||||” hover_enabled=”0″ global_colors_info=”{}” sticky_enabled=”0″].
Bills can begin to accumulate even with the best of intentions. Debt can affect anyone, from unforeseen medical expenses to high interest credit cards. Financial strain can also result from other expenses like college tuition, unpaid taxes, and second mortgages. Veterans and military families who are currently having financial problems may benefit from VA military debt consolidation loans. Read more…[/et_pb_blurb][/et_pb_column][/et_pb_row][/et_pb_section][et_pb_section fb_built=”1″ fullwidth=”on” _builder_version=”4. [et_pb_fullwidth_header title=”Call Us Now!” subhead=”800-720-0250″ button_one_text=”Purchase” button_one_url=”https://purchase”][module_preset=”default” custom_margin=”-120px||||false|false” saved_tabs=”all” global_colors_info=””] homepromise. com/” button_two_text=”Refinance” button_two_url=”https://refinance. homepromise. com/” _builder_version=”4. 16″ _module_preset=”971e51d9-54ed-48af-91c6-40ccb11fbcd8″ button_one_text_size=”15px” button_two_text_size=”15px” global_colors_info=”{}”].
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FAQ
How long after Chapter 7 Can I get a VA loan?
After filing for bankruptcy, people will probably have to wait two years before applying for a VA loan. What happens to your assets or property when you file for Chapter 7 bankruptcy and how long you have to wait to apply for a mortgage loan afterward are the two biggest differences between these two types of filings.
How long after Chapter 7 Can I get a home loan?
After a court discharges or dismisses your Chapter 7 bankruptcy, you must wait at least 4 years before you can be approved for a conventional loan. Government-backed mortgage loans are a bit more lenient.
Can I get a VA home loan after chapter 13 discharge?
Once you have been discharged from Chapter 13 bankruptcy protection for a period of 12 months, you might be eligible for a VA loan. If a potential borrower has made on-time Chapter 13 payments for at least a year, they may be approved for a VA home loan while continuing to make payments on their Chapter 13 bankruptcy.
What is the minimum credit score for a VA home loan?
There is no minimum credit score requirement. Instead, VA demands that a lender examine the full loan profile. Visit www. to view the complete VA credit requirements for more details. benefits. va. gov/warms/pam26_7. asp.