Can Bankruptcy Affect Your VA Loan Eligibility
Posted on August 5, 2009
Filed Under VA Mortgages |
Welcome back!
Is it possible for bankruptcy to affect a veteran’s eligibility for a VA home loan? In other words, what happens if you file bankruptcy, but you would like to purchase another home at some point in the future? Will there be any hindrances caused by your credit status?
If you are a veteran and you file for bankruptcy, you are still allowed to use VA home loans if you are also eligible under the standard VA policies. Of course, there is a downside. You will most likely be put through a required waiting period. This period is typically two years after the “discharge date” of the bankruptcy. Then you will be able to purchase another house. You need to understand that it is the discharge date and not the filing date that is the starting point of your waiting period.
When you are again eligible to buy another home, the standard credit and income requirements will apply when you are registering with the VA.
