cal vet home loans and bankruptcy

Asked by Jim Belderes, Palm Desert, CA Sun Sep 4, 2011

what guidelines are used for getting a home loan after chapter 7 bankruptcy

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Bob Willett’s answer
Bob Willett, , Sacramento, CA
Tue Aug 6, 2013
What others has answered is correct. The guidelines state you must wait a minimum of two years from the sale of a chapter 7 bankruptcy’s discharge (different for a chapter 13.) HOWEVER, Cal-Vet is a bit different. MY experience is that Cal-Vet will look at extenuating circumstances with a more sympathetic ear that other lenders can. Their rates are not as good as regular VA loans, but if there were extenuating circumstances it may be worth running your scenario past Cal-Vet. I’ve seen Cal-Vet do loans only a few months after a foreclosure! Again, it has to be a legitimate situation, but they do have more flexibility than other lenders do.
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Michele Pete…, Agent, Rocklin, CA
Tue Jul 23, 2013
The posts below are correct - 2 years from the discharge date unless there was a home foreclosed on after the fact. Then it will be 2 years from the actual date of foreclosure by the lender.

Good luck with your new home purhcase.

There are many great lenders who can help guide you through the process and prepare you to purchase too.
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Roy Bush, Both Buyer And Seller, Phoenix, AZ
Sat Jul 20, 2013
I had a buyer that wanted to buy a home in Arizona, but he had a Chapter 7 bankruptcy 7 months ago. I introduced a loan program at, they allow a mortgage after a foreclosure, short sale, or bankruptcy. There is only a six month waiting period. This is perfect for individuals looking to become homeowners again.
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, ,
Sun Sep 4, 2011
CalVet uses the same guidelines that regular VA loans - so unless your bankruptcy was due to extenuating circumstances it'd be 2 years from the discharge date.

Is there any special reason you are looking to use a CalVet loan instead of just a regular VA loan? Are you looking to finance rehab/improvements to the property you are buying? (CalVet has that feature whereas regular VA loans do not unless it's for energy efficient improvements). With CalVet rates are higher (about 1% higher right now), fees are higher, the process is a little longer, and there are a lot of "catches" when using the program - must remain living in the home, CalVet actually owns the home/they hold title, and can be subject to a "recapture" tax.
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Scott Godzyk, Agent, Manchester, NH
Sun Sep 4, 2011
Jim the best perosn to ask is a loan officer from a local bank or mortgage company. Most mortgages require a minimum of 2 years from discharge, there are some loans that will allow a shorter amount of time based on if you rebuilt your credit, what your credit score is, what your income and debt is and job history. meeting with a loan officer will answer all your questions.…

Please see my blog for a list of tips and advice on getting a mortgage
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