I qualify for a VA loan but had a Chapter 13 Bankruptcy. Can I buy a home now?

I qualify for a VA loan but had a Chapter 13 Bankruptcy. Can I buy a home now?

The answer to this question is the same as most home loans such as FHA, VA, CalSTRS etc; it’s case by case and it will really payoff to have a free consultation with me. Here is how most banks would look at the situation. In this case I am looking at Wells Fargo for my client.

How long does a BK have to be discharged for a 100% VA purchase?

Answer: If any of the included debts are with Wells Fargo or Wachovia, then 7 years. Otherwise, 2 years.

If 1-2 years old, then see below:

Use both of the following credit requirements to determine that the applicant or spouse is a satisfactory credit risk:

• The applicant and/or spouse have obtained consumer items on credit subsequent to the bankruptcy and has satisfactorily made the payments over a continued period.

• The bankruptcy was caused by circumstances beyond the control of the applicant (for example, unemployment, prolonged strikes, medical bills not covered by insurance). Divorce is not considered a circumstance beyond control of the applicant and/or spouse. If the bankruptcy was caused by failure of the business of a self-employed applicant, it may be possible to determine that the applicant is a satisfactory credit risk if:

1. The applicant obtained a permanent position after the
Business failed
2. There is no derogatory credit information prior to
Self-employment
3. There is no derogatory credit information subsequent to
The bankruptcy, and
4. Failure of the business was not due to the applicant’s
Misconduct.

Please feel free to request any additional information using the form in the column or calling me any time at 925-484-LEND(5363)

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