How do VA loans and bankruptcy go hand in hand?  VA loans are available to most veterans.  You will need to qualify for these loans though.  Qualifications often include a good credit history demonstrating your ability to repay the loan in full.  If you have filed bankruptcy, there are special qualifications that you will need to meet in order to obtain this type of loan.  While the VA loan is a great choice still, it may be necessary to wait a certain length of time to insure that you qualify for it.  The good news is that there is hope for obtaining this loan.

Credit Standing With VA Home Loans

If you are applying for a VA home loan, you will need to have good credit.  The VA will look at your past repayment history, to determine that you are most likely to repay your loan on time.  Because they have no way of knowing how you will pay your loan, your credit history and credit score may be obtained and used to qualify you.  The VA loan does not require excellent credit, but a decent amount of credit repayment is required.  Additionally, if you have any types of derogatory credit activity, it may be necessary to wait a full 12 months before you can apply for your VA loan.

There are different terms in place for those with the need for VA loans and bankruptcy is on their credit history.  Because this is a severe black mark on your credit portfolio, the VA will require that you meet additional criteria in order to obtain the loan.  Each person is different, so your case may be unique.

When considering VA loans and bankruptcy, a Chapter 7 bankruptcy on your report will require that it has been a minimum of two years since the discharge date of your bankruptcy (not the filing date) in order to obtain a VA home loan.  You will also need to provide a full explanation of the bankruptcy as requested.  Since the time that you have filed, you should have worked to build your credit up to a good standing and you must have steady employment and income qualifications in place.

If you are filing for Chapter 13 bankruptcy, there are some differences.  You still must disclose the full explanation of the bankruptcy.  You will also need to meet employment guidelines as well as financial requirements.  In addition to this, in order to obtain VA loans and bankruptcy is on your record, you will also need to have allowed a year’s time to pass in which you have made satisfactory payments, which may be verified.  Additionally, a court trustee will need to give approval for you to obtain the loan.

VA loans and bankruptcy do work together.  As a veteran, you will need to meet the standard qualifications for obtaining this loan, which include maintaining a current good credit history, having the financial means to make on time payments and have employment verification.  With these qualifications in place, your bankruptcy does not have to stop you from obtaining the loan that you want and need.