Do you only offer VA loans?

I am a full service mortgage broker. Although VA is the majority of what I do, I also have other mortgages like FHA, Conventional, USDA and Non QM.

Do you only service the Dayton and Cincinnati markets?

Dayton and Cincinnati are the majority of my business. However, I'm authorized to offer mortgage loans in 40 states. For loans outside of these areas, I can refer them to friends in the business.

Can You Get a VA Loan With a Repo on Credit?

As a loan officer, I frequently encounter questions about whether it’s possible to secure a VA loan with a repossession on your credit report. The good news is that, yes, you can get a VA loan even if you’ve had a repossession, but the specifics can vary depending on various factors.

Key Takeaways

Possibility of Approval: Yes, you can get a VA loan with a repossession on your credit, but it largely depends on the type of repossession and the timing involved.
Waiting Periods: For repossessions, the typical waiting period is one year, but this can vary among lenders. Foreclosures have a more structured two-year waiting period, which can sometimes be shortened to one year with extenuating circumstances.
Extenuating Circumstances Matter: Certain situations, like job loss or medical issues, can potentially reduce the waiting period for loan approval after a repossession.

Take the 30 second mortgage quiz to see if you qualify

Understanding Repossessions and VA Guidelines

When it comes to repossessions, the VA’s guidance is somewhat vague. However, most lenders have established a general waiting period of one year from the event of repossession. This timeframe can differ based on how lenders interpret the starting point for that waiting period. Some lenders will begin the count from the repossession date, while others may start from the date of your last late payment.

If your repossession was related to a financial hardship, extenuating circumstances can also reduce or eliminate this waiting period. Extenuating circumstances such as job loss or medical issues, when fully resolved, can be persuasive arguments that may allow for quicker approval timelines.

The Waiting Period for Foreclosures

It’s essential to differentiate repossessions from foreclosures. The VA has clearer guidelines on foreclosures, typically requiring a two-year waiting period from the date the title transferred from your name to the lender’s name. However, similar to repossessions, this period can be shortened to one year if you can prove extenuating circumstances, such as a major job loss or medical crisis that has since been resolved.

Examples of Extenuating Circumstances

Certain factors can qualify as extenuating circumstances that may help reduce your waiting period:

Medical Issues: These must be involuntary, like a car accident or serious illness, and should have been resolved to be taken into account.
Job Loss: If laid off without cause, this situation may help shorten your waiting period. In contrast, being fired for cause will not be considered an extenuating circumstance.

Be aware that not all life events will qualify to shorten your waiting period. For example, divorce or the condition of the car or item that was repossessed is typically not considered.

Take the 30 second mortgage quiz to see if you qualify

Final Thoughts

In conclusion, securing a VA loan with a repossession on your credit is possible, but the outcome heavily depends on the specifics of your circumstance and the lender’s guidelines. Understanding these nuances and ensuring that any extenuating circumstances are well documented will significantly improve your chances of obtaining a loan.

Have questions about VA home loans? Click here to contact me.

Licensing Info

I can originate VA mortgage loans anywhere that I’m licensed. I’m licensed in Alabama, Arkansas, Arizona, California, Colorado, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, New Mexico, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Virginia, Washington, and Wisconsin. Additionally, our team can originate mortgages in several additional states through our corporate referral program.

How To Get A VA Home Loan With Bad Credit

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Carlos Scarpero

Carlos Scarpero is the founder of Scarpero.com and a mortgage loan officer focusing on VA and Non QM mortgage loans. He is also the author of VA Loans Made Easy.