va mortgage loan waiting periods

VA Loans

VA Loan Waiting Periods: Foreclosure, Bankruptcy & Short Sale

Life happens and sometimes, your finances aren’t where they need to be to help you stay afloat. This led to 752,160 personal bankruptcy filings in the United States in 2019. If you file for bankruptcy, short sale your house, or your lender forecloses on your property, you’ll essentially get a clean slate and a chance to start over, rebuilding your finances without thousands of dollars of debt hanging over your head. But what happens when you’re ready to work with a VA mortgage broker to buy a new home after bankruptcy, foreclosure, or short sale?

You’ll Have to Wait

VA mortgage brokers do what they can to help borrowers get into new homes easily. But if you file bankruptcy, you’ll have to wait for a set period of time before you can apply for financing. This waiting period varies based on the type of bankruptcy you file for.

If you file Chapter 7 bankruptcy, you’ll have to wait for two years after your bankruptcy is discharged before you can apply for a new mortgage. If you file Chapter 13 bankruptcy, you’ll need to wait for one year after filing. You’ll want to discuss your situation with your VA mortgage broker as soon as you apply.

The Same Holds True for Short Sales

If your lender accepts a short sale to settle your debt, you’ll have to wait for two years after the date of the short sale before you can apply for a new loan. This is non-negotiable and is a requirement regardless of which lender you partner with.

Are the Waiting Periods Better for VA Loan Borrowers?

Believe it or not, the waiting periods for people applying for VA mortgage loans are shorter than the ones you’d find with other government-subsidized loans. FHA, USDA, and conventional loans all have three or four-year waiting periods before you can qualify for another loan. Even better, VA lenders work with borrowers with lower credit scores. This makes it easier for you to qualify for a loan in the future, even if your finances haven’t rebounded or recovered fully.

Talk to a VA Mortgage Broker Now

The best thing you can do is to speak with a VA mortgage broker at Mortgage Solutions Financial as soon as you think you’re ready to buy a house. Discuss your situation openly and let our team help you find the best loan for your upcoming home purchase.