Can You Get a VA Loan After Bankruptcy

The short answer is yes. In fact, there are lower restrictions with a VA loan than with a FHA or Conventional loan. Of course, it will depend on what type of bankruptcy you filed and the reason.

There is always a ‘waiting period’ before you can be eligible for a mortgage after a bankruptcy. With a VA loan, if you filed a Chapter 13 there is no waiting period and with a Chapter 7 filing you will need to wait 2 years. A Chapter 7 filing results in complete dissolution and sale of all your assets. A Chapter 13 filing is more of a reorganization of your debts and negotiates with your creditor’s new payment terms. In a Chapter 13 filing you can keep your home if you have one where in a Chapter 7, it must be sold.

With conventional and FHA financing the waiting period can be up to 4 years.

In a Chapter 13 filing, you can obtain a VA mortgage only if your filing is dismissed or discharged and you meet the minimum credit requirements.

As always, you should speak to a trusted mortgage advisor to learn more about what you may need to do to qualify for your VA mortgage. Speak to a Home Loan Advisor at Hall Financial to learn more.