How VA Treats Bankruptcy And Foreclosure…

Good Morning!

Have you had a bankruptcy or foreclosure in your past, and now you want to get a VA loan?

Here is how VA treats bankruptcy and foreclosure…

Short Sale

Deed-In-Lieu of Foreclosure

Foreclosure:

2 years from completion date

If extenuating circumstances exist – 12 months from completion date with re-established credit

Note: If the occurrence was on a VA loan, the veteran may not have full entitlement available for the new loan

Bankruptcy:

Chapter 7 or 11 – 2 years from discharge or dismissal date

Note: If bankruptcy was result of a business failure, provide evidence that;

Applicant obtained permanent position after business failure

No derogatory credit prior to self employment

No derogatory credit subsequent to bankruptcy

Bankruptcy:

Chapter 13

2 years from discharge or dismissal date

A minimum of 12 months of payments have been made, all payments have been paid satisfactorily and Trustee or Bankruptcy Judge has approved

Thanks for reading!

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