It's certainly worth a shot! A quick credit check along with an honest mortgage application will let you and your lender know exactly where you stand and what your options are right now. Whether it's purchasing a home or repairing your credit so that you can purchase in the future, a good loan consultant should help lead you in the direction that you need to go. In most cases, this first step can be taken right over the phone. Good luck to you!
You won't know until you try. Different banks have different requirements and some are more lenient than others when it comes to old credit issues.
Many of my clients area VA homebuyers. I have a tremendous loan officer that specializes in VA and FHA loans. His name is Rob Chomentowski. He has a profile on Trulia and you can access his website at http://www.socalfhahomeloans.com.
We have a great loan officer who is an underwriter for VA loans. She will be glad to talk with you, no cost, no obligation. The information is free and she will tell you if you are ready to buy now. If you are not ready yet, she will coach you on what needs to be done to get ready so you can buy in the future. Right now she is helping clients of ours who were turned down by 2 other VA loan officers in March. She told them what they HAD to do to be able to buy, they did it, and by May she had them approved and they are moving into their new house next weekend!
BTW, you still get the $8000 first time home buyer tax credit when you use your VA loan. Isn't that great! You just have to move fast, you have to complete the sale by December 1, 2009.
Call or email for her contact info! Thanks! 951 454-3805