Hello, I have been under a CH 13 since Jul 2008 and I just sent my last payment to the trustee to cover the last few months. I contacted my loan specialists since there seems to be a lot of conversation about people not being able to purchase a home once their CH 13 discharges until 2 years has past. She has told me that this simply isn't true and that I am fine. The even greater news is that they are requiring credit scores for VA loans to be at least 600. Once she told me this I decided to go ahead and possibly start the process next month when I have my credit card balance a little lower. I am glad that I double checked what she had already told me. As long as my credit score on here is correct then I know I have at least a 600.
I don't know about VA loans, but for FHA loans (another government-sponsored program) it is theoretically possible to obtain a loan while still making payments on a chapter 13 bankruptcy. There is no requirement that a certain amount of time elapses from the time that someone emerges from chapter 13. You'd have to check to see if similar rules apply to VA loans.
Keep in mind that even though the loan guidelines for chapter 13 make it possible for borrowers to obtain new loans, it's not a guarantee. Lenders and underwriters are going to have their own lending criteria, which may be more stringent than the general guidelines put forth by the VA and FHA.
VA mortgage lenders require at least a 620 credit score, but it looks like you're OK in that regard anyway.
That being said: You should make sure your potential lender runs your file through the VA underwriting system before too long though. The VA underwriting system is programmed to look more at the other qualifying factors (other than just credit score) when obtaining a mortgage loan than the underwriting systems of other programs.
For example, your ability to pay is heavily scrutinized (the dti and also the residual income, which is calculated by taking into account your income taxes, the property taxes of the home, what type of heat the home your purchase will have, estimated maintenance fees, the square footage of the home being purchased and your family size, just to name a few). Also your employment history and how much money you have to put down will be taken into account. How much money you will have left in reserves after you make the down payment (if any) and pay the loan settlement charges will also be considered.
The VA underwriting system is also big on re-established credit and the underwriting algorithm looks for absolutely no problems making payments on time since a BK is filed/discharged.
And to the FHA borrower from before, the fact that they made you wait two years after discharge on a BK-13 was a misinterpretation of the FHA guidelines by the two lenders....dare I say they sound like they were (are) incompetent!
I get homebuyers FHA mortgages all the time, as long as they are least one year into the plan (don't even need to wait for discharge)...they do need to have BK court approval and be able to qualify with the repayment plan payment, etc.
I do agree that Chap 7 does almost always requitre at least 2 years from date of discharge.
Good Luck! Andy
Congrats on your hard work and progress...
Bringing down your UTIL will also improve your scores.
Keep following your path you been on, it seems to be working for you and everything will fall in place.
Good Luck with your meeting on Monday