What Should Be Done to Get a VA Loan Post Bankruptcy

To begin, the VA loan process is much less complicated than what people think it is. It is very common for VA loan applicants in states like Hawaii, to get stuck somewhere in the process where they wish they had someone who could guide them properly. The basis of guidance is proper information. One of the most common queries that people have is regarding getting a VA loan after bankruptcy. Yes, foreclosure does affect a person’s ability to get a loan, but just because a person is facing bankruptcy, does not necessarily mean that he is out of the league of prospective loan borrowers.

 VA Loan process for bankrupt borrowers

There is no denying the fact that the VA home loans Hawaii process for individuals with a history in bankruptcy is difficult. But there are certain tools and clauses that can help people in recovering from the situation. Chapter 7 and chapter 13 bankruptcy filing protection are the first steps that one needs to take in order to get sanctioned for a VA loan later. In general cases, VA approved lenders generally wait for a minimum of two years, beyond the date of discharge, in case of chapter 7 filing.

In cases where borrowers file chapter 13 bankruptcy protection, are eligible for a VA loan just after 12 months from the date of filing. The chief determining factors for Hawaii VA loans, in such cases would be timely payments and satisfactory credit scores.

Bankruptcy with foreclosure

Depending on the financial position you are holding, an existing homeowner might even choose to give back his home during the entire process of bankruptcy filing. Borrowers of VA home loan Hawaii, in general, have to wait two years before obtaining a home loan post foreclosure. It is thus the concern that veterans might have to wait four years or more for it. This is untrue.

Taking care of your credit

One of the greatest obstacles that people need to face while getting a VA loan post-bankruptcy is his inadequate credit score. Hence, it is advisable that after two years of discharge, a person should work on improving his credit score. Once you manage to repair your credit, you would be able to prepare yourself for pre-qualification.


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