Purchasing a Home Using VA Mortgage Post-Foreclosure

by San Antonio Attorney

An unpaid home loan by a previous owner often puts prospective homebuyers in a difficult situation.

But as compared to homeowners with FHA loans,VA borrowers can claim homeownership more quickly as long as they comply to the requirements.

Home affordability faces the possibility of lower prices into the start of 2016.  Should you avail of VA-backed loan, you can be eligible to be a “boomerang buyer.”

Using A VA Loan Post-Conventional or FHA Foreclosure

For borrowers who are connected in military and are using the VA Home Loan Guaranty program, the success in financing a home after a foreclosure will be depend on the type of loan chosen by default.  For instance, veterans and active duty members who lost a conventional mortgage due to foreclosure must follow a grace period of two years minimum before qualifying for another VA loan.

For military borrowers, the wait for a defaulted loan may be long so instead to trying to quicken the process, the best device is to mend finances and repair credit while waiting.

A foreclosure can take away as big as 120 points from your credit score, according to credit scoring firm FICO.  However,you can redeem your score through time and meticulous attention.  A debtor can potentially reclaim the lost credit score points in time to be qualified for a home loan with the Department of Veterans Affairs.  A standard score of 620 FICO is a requirement among VA lenders.

Using A VA Loan Post-VA Foreclosure

Non-payment on a government loan creates a difficult path for homeownership, but this is not the end of the road though.  Typically, there is a two-year period before you can follow another loan.  Selected VA lenders may have no waiting period after a sale.

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