topic Re: How soon after foreclosure can you qualify for a VA loan in Mortgage Loans

How soon after foreclosure can you qualify for a VA loan

Anonymous — Tue, 16 Nov 2010 19:52:00 GMT

Before my husband and I were married he owned a house that was a FHA loan after his divorce it was foreclosed on. From the info we have it looks like Jan 2009 was when everything was finished on the foreclosure. we have been working hard at paying all other debts off and I doing really good on our budget. But with a another baby on the way and rent sky high , we are trying to figure out our options. Is it 2 years or 3 after a foreclosure you can qualify for a VA HOME LOAN.

Re: How soon after foreclosure can you qualify for a VA loan

Anonymous — Tue, 16 Nov 2010 21:06:21 GMT

I believe it is 2 years with VA, but understand a couple things. That is no guarnatee of an approval. That is the minimum requirement. Alot of lenders still want 3 years even though VA says 2. Also, the key will be making sure there are absolutely zero credit blips in the meantime and that you have multiple accounts that have perfect payment history for over a year (3 as a minimum) to re-establish credit worthiness for the bank. Also, keep in mind that those requirements could easily change over the next 2 years.

Re: How soon after foreclosure can you qualify for a VA loan

ShanetheMortgageMan — Tue, 16 Nov 2010 21:47:40 GMT

Yup, it's 2 years for VA. Most lenders still go by that guideline as well.

Re: How soon after foreclosure can you qualify for a VA loan

Anonymous — Tue, 16 Nov 2010 21:59:54 GMT

Thanks for the info. We just paid off two cars perfect payments for over 2 years. They each had 1 30 day late payment when our due dates changed. paying on two credit cards one that is closed but current per our payment plan. One open credit card that we use and pay off monthly. And one car payment that we just got last month. we do have a judgment on my husbands credit but it has been paid and we have a satisfaction and release of judgment on that. I know we have a little way to go to get his scores up but maybe 2.5 years will be our magic number.

Re: How soon after foreclosure can you qualify for a VA loan

Anonymous — Tue, 16 Nov 2010 23:08:44 GMT

you probably need a 3rd active tradeline. I do not believe payment arrangements on closed or bad accounts would count. You need 3 active credit lines with a full year history to make approval as easy as possible (and with past BK or foreclosure, you want to make it as easy for them to say yes as you can)

Re: How soon after foreclosure can you qualify for a VA loan

ShanetheMortgageMan — Thu, 18 Nov 2010 22:38:43 GMT

Correct, payment arrangements on delinquent accounts disqualify the trade line from being considered as re-established credit. Non-traditional credit can also count towards re-established credit though - so if you've been renting, all payments are on time, and can provide cancelled checks then that could qualify as a 3rd trade line for the re-established credit requirement.

Were the 2 separate 30 day late payments, and judgment, all after the BK discharge? What was the judgment from, and when did that get filed?

Re: How soon after foreclosure can you qualify for a VA loan

Anonymous — Fri, 19 Nov 2010 16:42:47 GMT

To answer some of the questions my husband never filed bankruptcy he opted only to lose the house and pay all other debt off. We have paid 18,000.00 of credit card debt from his divorce off in the past 18 months. We paid off 2 cars as well. Are down to a closed pnc card with a balance of 1900.00 and a car loan that we just got due to the fact we are expecting a baby. the judgment was from a chase credit card of 5000.00. we are going to try to get it vacated if we can ( my husband was never served with the papers they were taped to my door while he was deployed and they were filed with the courts after the first payment had already cleared and we have all the paperwork to prove it.). we ended up making payments for 8 months then settling for 600 less then we owed from our taxes. It is paid and we have a satisfaction from the courts. the judgment was closed in Feb.. 2010 started in June of 09. yes we have rented for almost 3 years and have never been late once. thanks for all the information.

Re: How soon after foreclosure can you qualify for a VA loan

ShanetheMortgageMan — Fri, 19 Nov 2010 16:55:28 GMT

My bad, I meant foreclosure instead of BK - were the late payments & judgment after the foreclosure sale date?

Re: How soon after foreclosure can you qualify for a VA loan

Anonymous — Fri, 19 Nov 2010 17:13:23 GMT

Late payments were before the foreclosure. Chase judgment was before during and after. They refused 200.00 a month payments and wanted 750.00 a month. And because of it going to the courts chase still shows us as late from April 09 through Feb.. 10 even though we were on automatic payments to the law office. we called chase and asked them to show us how we were late while making payments, they refused said to contact their lawyers that they didn't keep info on the people once they were sent to court. we are still trying to figure out our best course of action with chase as they wont talk to us not sure if writing a letter would work or not?

Re: How soon after foreclosure can you qualify for a VA loan

ShanetheMortgageMan — Fri, 19 Nov 2010 17:33:26 GMT

It sounds like Chase is just going to keep referring you to their attorneys. If you were caught up with Chase when you went on the automatic payments, and the amount of the automatic payments met the required payment amount each month, it does sound like you shouldn't have been reported late. It also sounds like it defaulted June of 2009, so if that is the case I'm not sure how afterwards they are able to continue to report late payments on the original Chase trade line. This portion of your question would be better suited to the general credit topic section.

Until you can get the credit history cleaned up, you may have to wait until 2 years past the post-foreclosure negative history as the foreclosure requires 2 years, and if there is major derogatory afterwards, almost always requires another 2 years from when it happened. If you are able to get the judgment vacated then it's like it never happened, and you should have an easier time qualifying for VA financing.