During recessions and difficult economies, personal bankruptcies often rise as people lose their jobs and have difficulty paying their bills. The most popular form of personal bankruptcy is a Chapter 7 bankruptcy. The good news is active military and veterans can qualify VA loan to buy a new primary residence only two years after your bankruptcy 7 discharge. So if you had a bankruptcy 7 around this time in 2008, you may already be to get a VA loan immediately.
There are few key points to remember if you have had a bankruptcy, or may soon have one, to start preparing yourself to apply VA loan:
- Check the discharge date on your bankruptcy, not the date you initiated it. This is the date the VA loan underwriter will check to make sure you are two years or more after for VA loan qualification
- Make sure you are never late on ANYTHING after the bankruptcy. If you have any bad credit after the bankruptcy it could cause you to be denied the VA loan. This includes late payments, collections, charge-off’s, etc…
- Try to re-establish credit as quickly as you can after the bankruptcy. Maybe try to get a secured credit card from your bank or maybe a store card, or anything. And just charge small items that you need on these cards and pay them off every month. This will allow the VA loan underwriter to see that you have re-established lines of credit and you are showing a reliable payment history.
So in summary, all is certainly not lost if you have declared Chapter 7 bankruptcy. If you follow my advice you can immediately be back on the road to getting VA loan approval and buying a wonderful primary residence in California for you to enjoy.
Some great advantages of California VA Loans:
- VA loan credit does not have to be perfect, even a 600 score can get you very good interest rates VA loan
- California VA home loan limits can go very high, and as high as $952,000 with 100% financing in certain areas and counties such as San Jose, San Francisco, San Diego, Los Angeles and Orange County.
- VA loan benefits allow veterans receiving any disability pay to have the VA funding fee waived. This is essentially 100% financing at a low rate with no mortgage insurance!
- Underwriting to qualify VA is the most flexible and forgiving of any mortgage loan today
- VA homeloans are 100% financing, this means you do not need anything down and sellers are allowed to pay 4% of your closing costs. So this means you could buy with almost no cash out of your pocket
Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions or want to apply for a VA loan.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer (and VA specialist)
858-922-7899
Get a VA Loan in California Two Years After Chapter 7 Bankruptcy is a post from: VA,FHA and Conventional Loans 858-922-7899
No Comments
No comments yet.
RSS feed for comments on this post.
Sorry, the comment form is closed at this time.