Past bankruptcy can I still use VA home loan?
how do lenders treat people with past bankruptcy trying to use the VA home loan program? Are lenders more willing to lend money if they know 80% of loan is back buy the goverment?
- loanmasteroneLv 71 decade agoFavorite Answer
Under a VA loan 100% is backed by the VA. The vet does not have to bring anything to the table except a few closing cost. In some instances if the Vet is smart negotiator he/she might be able to get away with paying nothing.
You have to find a mortgage banker or lender that does government mortgages. You might find one in your local telephone book or get a referral from a family member or friend.
As far as your bankruptcy is concerned if it is past 2 years since the filing date you should be ok. The older the bankruptcy is the better off you are. Lenders follow guidelines of the investors that they sell their loans to, thus the two year from filing date requirement.
If the bankruptcy still appear on your credit report you might be asked to write a letter of explanation as to why you decided to go into bankruptcy.
The mortgage loan application ask if you have been in bankruptcy in the last 7 years and further ask for an explanation.
I hope this has been of some use to you, good luck.
- golferwhoworksLv 71 decade ago
you must be 3 years past discharge in any event for a government loan and that may change today
- Anonymous1 decade ago
TALK WITH A LENDER.