Qualifying For VA Loans After Mortgage Charge Off Versus FHA Loans
This BLOG On Qualifying For VA Loans After Mortgage Charge Off Versus FHA Loans
There are mandatory waiting period after bankruptcy, foreclosure, deed in lieu of foreclosure, and short sale to qualify for any types of government and/or conventional loans.
- VA Loans are the best mortgage loan program in the United States
- However, only veterans with a certification of eligibility can qualify for VA Loans
- The United States Department of Veteran Affairs (VA) is in charge of VA Loans. VA is a little more strict when it comes to qualifying for VA Loans After Mortgage Charge Off Versus FHA Loans
- There are times when a veteran borrower will not get an approve/eligible per Automated Underwriting System Findings on a VA Loan but will get AUS Automated Approval on FHA Loan
- Veteran borrowers can qualify for VA Loans After Mortgage Charge Off
VA And FHA Waiting Period Requirements After Bankruptcy And Foreclosure
- Waiting period after Chapter 7 bankruptcy is two years from the discharged date of the bankruptcy to qualify for the three government loan program:
- VA Loans
- FHA Loans
- USDA Loans
- Veteran Borrowers can qualify for VA Loans one year into Chapter 13 Bankruptcy repayment plan with the approval of the Bankruptcy Trustee
- FHA has the same requirement with Chapter 13
- Timely payments for the past 12 months on their Chapter 13 Bankruptcy Creditors is required for both VA and FHA Loans
- Waiting period after foreclosure and deed in lieu of foreclosure is three years from the recorded date that is reflected on the county recorder of deed’s office and posted on the county public records to qualify for a FHA Loan
- However, the waiting period is only two years after foreclosure, deed in lieu of foreclosure, short sale on VA Loans
- There is a three year waiting period after the date of the short sale that is reflected on the HUD Settlement Statement to qualify for a FHA Loan
Conventional Loan Waiting Period After Bankruptcy And Foreclosure
Waiting Period after bankruptcy and foreclosure is different for conventional loans than it is for FHA Loans.
- There is a four year waiting period after the discharge date of a Chapter 7 Bankruptcy to qualify for a conforming loans
- There is a four year waiting period after a deed in lieu of foreclosure and short sale to qualify for a conventional loans
- There is a two year waiting period after Chapter 13 Bankruptcy discharge to qualify for a conventional loan
- There is a four year waiting period after a Chapter 13 dismissal to qualify for a conventional home loans
- There is a four year waiting period after a deed in lieu of foreclosure and short sale to qualify for a conventional loan
- There is a seven year waiting period after a foreclosure to qualify for a conventional loan
VA Loans After Mortgage Charge Off Versus FHA Loans
A mortgage charge off is when a mortgage lender has charge off the mortgage loan off their books. The lender then decided not to pursue collection activities or go through foreclosure proceedings.
- Many homeowners who fell victims to the 2008 real estate and mortgage meltdown tried to give back their properties to their mortgage lenders
- Reason is because they could not afford their home loan mortgage
- But many mortgage lenders did not want the property back and decided to just charge off the mortgage loan
- A veteran home buyer with a mortgage charge off can qualify for VA Loans after charge off after meeting minimum waiting periods after mortgage charge off
- Veteran borrowers can qualify for VA Loans with charge off two years from the date of the charge off that is recorded on the credit reporting agencies
- The two year waiting period on mortgage charge off waiting period applies to both a first mortgage and second mortgages
- Veteran home buyers with a first mortgage and second mortgage and both mortgages were charged off, the latter date of the mortgage charge off will be the start of the waiting period
- Borrowers would need to wait two years from the latter mortgage charge off date to qualify for VA Loans after charge off
With USDA and FHA Loans, borrowers can qualify for mortgage after charge offs in three years from the recorded date versus two years on VA Loans.
No Overlays On VA Loans After Mortgage Charge Off
Home Buyers who need to qualify for FHA and/or VA Loans After Charge Offs and Collections with a direct lender with no overlays, please contact The Gustan Cho Team at USA Mortgage at 262-716-8151. We are a no mortgage lender overlays national mortgage bankers and correspondent mortgage lenders. Minimum credit scores to qualify for a 3.5% down payment FHA Loan is 580 FICO credit scores and we have no credit score requirements on VA Loans. Debt to income ratios are capped at 56.9% back end with FHA Loans and have no cap on debt to income ratio on VA Loans. Charge offs and unpaid collections do not matter and do not be settled to qualify for both FHA and VA Loans. Medical collections do not count. Down payment can be gifted 100% by family members or close friends on FHA Loans. Non-occupant co-borrowers can be added to qualify for those who are self-employed or have no documented income with FHA Loans. We just go off Automated Findings on government and conventional loan programs. We are available 7 days a week, evenings, weekends, and holidays. Call us or email us at email@example.com.