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Registered: ‎09-28-2007
Re: Evaluating Conventional vs. FHA (VA & USDA)


hj2222 wrote:

Hi there..


Will a VA loan be processed if a BK was in 2010? We found that our scores are in 620-640 ranges and would like to see if we can use his VA eligibility, but can't find any info on the length of time that has to pass before a mortgage can be approved.


Thanks for any help!

It depends on the type of BK, and the reasons behind needing to file BK.  If it's a Ch 7, then 2 years is required unless the BK was due to extenuating circumstances, then just 1 year from the BK can be acceptable as long as there is also 12 months of re-esblished credit.  With a Ch 13 BK, you only need to be 1 year from the filing date with all trustee payments made on time... so technically you can be in a Ch 13 BK and get a VA (or FHA) mortgage, as long as the trustee & judge approve it.  If a Ch 13 BK has been repaid/discharged, then that person is eligible immediately afterwards.