Financing and Chapter 13

Jeannie
Home Buyer
60406

my husband and I are 1.5 years out of a Chapter 13 bankruptcy discharge. We are able to go VA with our potential new mortgage or the refinance of our existing mortgage. Can you tell us what sort of prequalifications we will be faced with, even with VA loan eligibility? Thanks!

Answers (2)
Greg Zaccagni
Agent
Illinois

VA's biggest advantage over FHA is probably that you can purchase with up to 100% financing. For refinance I'm uncertain there is any clear advantage. Here is a link to my blog outlining the differences.
http://activerain.com/blogsview/624754/What-s-the-advantage

For more on Government loans click here:
http://www.gregzaccagni.com/GovernmentLoanPrograms

Mon Sep 22 2008, 19:41
Luke Allison
Mortgage Broker
or Lender

Asheville, NC
FIRST ANSWER

Hi Jeannie-

A lot of qualifying for a government loan outside of a Bankruptcy has a lot to do with being able to explain the circumstances behind your bankruptcy and try to help th lender understand that those circumstances are not likely to happen again. Usually you can provide letters, receipts, and alternative credit docs to help justify the origination of your mortgage. I do this a lot so I can help you through it if you would like help.

Thanks
Luke Allison
Flagstar Bank
828-777-8828
Luke.Allison@flagstar.com

Mon Sep 22 2008, 10:41

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