FHA Loan = NO. VA Loan? Just Maybe...
Having served eight years in the Army, I also qualify for a VA loan. I did a little research into the requirements for a VA loan, and found the following:
| Inquiry | |
| If I filed for bankruptcy, do I qualify for a VA home loan? | |
 | |
| Answer | |
| The fact you have been adjudicated bankrupt does not in itself disqualify you for a VA home loan. The following rules apply: * If the bankruptcy was discharged more than 2 years ago, it may be disregarded * If the bankruptcy was discharged within the last 1 to 2 years, it is probably not possible to determine that you are a satisfactory credit risk unless both of the following requirements are met: 1. you have reestablished satisfactory credit, and 2. the bankruptcy was caused by circumstances beyond your control (such as unemployment, medical bills, etc.) * If the bankruptcy was discharged within the past 12 months, it will not generally be possible to determine that you are a satisfactory credit risk. |
It appears that the VA loan requirements have a specific provision that allows borrowers who are over one year but under two years post-bankruptcy to still qualify for a loan under certain circumstances. In my case, our credit score is actually back over 700, which should qualify for "satisfactory," and the two biggest contributing factors to the financial difficulties that led to our bankruptcy were unemployment and medical bills caused by the birth of my son (and, subsequently, my daughter as we were still trying to dig our way out).
I have applied for my VA certificate of eligibility and hope to pursue some other lenders on the possibility of obtaining a VA loan.
Check back for details...
