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.

VA Loan After Bankruptcy in Virginia

Take the 30 second mortgage quiz to see if you qualify

VA Loans After Chapter 7 Bankruptcy in Virginia

Do you need to get a VA loan after a bankruptcy in Virginia? I can help.

Getting a VA loan in Virginia after a Chapter 7 bankruptcy is possible, but the timing matters. Many veterans in Virginia are told they have to wait for years before buying again. That is not always the full story. VA guidelines allow lenders to review the bankruptcy, the reason it happened, and how the veteran has handled credit since then.

In most cases, a Chapter 7 bankruptcy is much easier to work with once it has been discharged for at least two years. At that point, the VA handbook says the bankruptcy may be disregarded. If the discharge was more recent, the lender may need to document strong re-established credit and show that the bankruptcy was caused by circumstances outside the borrower’s control.

VA Handbook Excerpt

“If the bankruptcy was discharged more than 2 years ago, it may be disregarded.”

“If the bankruptcy was discharged within the last 1 to 2 years, it is probably not possible to determine that the applicant or spouse is a satisfactory credit risk unless both of the following requirements are met…”

“The applicant or spouse has obtained consumer items on credit subsequent to the bankruptcy and has satisfactorily made the payments over a continued period.”

“The bankruptcy was caused by circumstances beyond the control of the applicant or spouse such as unemployment, prolonged strikes, medical bills not covered by insurance, and so on…”

Source:

VA Lenders Handbook – Chapter 4: Credit Underwriting, Topic 7

The biggest thing is showing that the bankruptcy was a past event, not an ongoing pattern. On-time payments after discharge, stable income, reasonable debt, and clean housing history can all help strengthen the file. Even if another lender said no, it may still be worth reviewing your VA loan options in Virginia.

Take the 30 second mortgage quiz to see if you qualify

VA Loans After Chapter 13 Bankruptcy in Virginia

A Chapter 13 bankruptcy is different because it is a repayment plan supervised by the bankruptcy court. The good news is that VA guidelines may allow a veteran to qualify for a VA loan before the Chapter 13 is fully discharged, as long as certain conditions are met.

This is where VA financing can be especially helpful for veterans in Virginia. Some loan programs require the bankruptcy to be completely finished before the borrower can move forward. VA guidelines give lenders a path to consider the loan if the borrower has made at least 12 months of satisfactory payments and has approval from the trustee or bankruptcy judge for the new credit.

VA Handbook Excerpt

“A Chapter 13 bankruptcy is a repayment plan under the supervision of the bankruptcy court.”

“If the applicant or spouse has finished making all payments satisfactorily, the lender may conclude that the applicant has reestablished satisfactory credit.”

“If the applicant or spouse has satisfactorily made at least 12 months’ worth of the payments and the Trustee or the Bankruptcy Judge approves of the new credit, the lender may give favorable consideration.”

Source:

VA Lenders Handbook – Chapter 4: Credit Underwriting, Topic 7

That does not mean every lender will approve a VA loan during Chapter 13. Many lenders have their own overlays that are stricter than VA rules. The file still needs to make sense, and the borrower must show they can afford the new mortgage payment along with their other obligations.

If you are in a Chapter 13 plan or recently completed one, the next step is to review the bankruptcy payment history, trustee approval requirements, income, debts, and VA eligibility. Many veterans in Virginia are closer to qualifying than they realize.

Take the 30 second mortgage quiz to see if you qualify

Frequently Asked Questions About VA Loans After Bankruptcy

Can I get a VA loan after a Chapter 7 bankruptcy?

Yes. In many cases, veterans can qualify for a VA loan after a Chapter 7 bankruptcy once the bankruptcy has been discharged for at least two years. Some lenders may allow exceptions with strong compensating factors and documented extenuating circumstances.

Can I get a VA loan while still in a Chapter 13 bankruptcy?

Possibly. VA guidelines may allow financing during an active Chapter 13 bankruptcy after at least 12 months of satisfactory payments have been made and the bankruptcy trustee or judge approves the new mortgage.

Does the VA have a minimum credit score after bankruptcy?

The VA itself does not set a minimum credit score. However, most lenders create their own credit score requirements called overlays. Some lenders may require a 620 score while others may allow lower scores depending on the overall file.

How long do I have to wait after bankruptcy to buy a home with a VA loan?

The waiting period depends on the type of bankruptcy. Chapter 7 typically requires around two years after discharge. Chapter 13 may allow financing sooner if the repayment plan has been satisfactory for at least 12 months.

Do I need to rebuild my credit after bankruptcy?

Usually yes. Lenders want to see that the borrower has re-established positive credit habits after the bankruptcy. This can include on-time payments, stable housing history, and responsible use of new credit accounts.

Can I get a VA loan with a bankruptcy and foreclosure?

Possibly. VA loans may still be available after a foreclosure, but additional waiting periods may apply. The lender will review the circumstances surrounding both the bankruptcy and foreclosure when evaluating the loan application.

Will a bankruptcy prevent me from using my VA entitlement?

No. Filing bankruptcy does not automatically remove your VA loan eligibility or entitlement. As long as you remain eligible for VA financing and meet lender requirements, you may still use your VA home loan benefit.

What are compensating factors for a VA loan after bankruptcy?

Compensating factors are strengths in the loan file that help offset past credit issues. These may include stable employment, strong residual income, low debt-to-income ratios, cash reserves, or a strong recent payment history.

Can medical collections and bankruptcy still qualify for a VA loan?

Yes. Many veterans experience bankruptcy because of medical debt or financial hardship. VA underwriting allows lenders to review the full financial picture rather than relying only on a credit score.

What documents are needed for a VA loan after bankruptcy?

Lenders will usually require bankruptcy discharge paperwork, bankruptcy schedules, trustee information for Chapter 13 cases, proof of on-time payments, income documentation, and an explanation of the circumstances that caused the bankruptcy.

I am proud to have completed the Vetted VA certification program.

Vetted VA is a program that allows loan officers to demonstrate that they have superior knowledge of the VA mortgage program.

Less than 1% of loan officers out there have completed this certification.

The Vetted VA program also provides me a network of loan officers all around the country that can help. This means that any help needed to get the loan closed in a timely manner will get figured out quickly and easily.