Most of the time the questions are determining how long a borrower has to wait after their bankruptcy before they become eligible for a VA loan?

Chapter 7 Bankruptcy

Generally, with a chapter 7 bankruptcy the VA underwriting guidelines require a 2 years waiting period from the discharge date of the bankruptcy before financing becomes available. To contrast this with conventional guidelines at the time of the article Fannie Mae is now requiring a 4 year waiting period after a chapter 7 BK.

Chapter 13 Bankruptcy

Fannie Mae requires a 2 year waiting period after the discharge.

Foreclosure

The VA guidelines state the foreclosure period follow the same rules as the Chapter 7 Bankruptcy.

• In addition, if you don’t have any remaining creditors after your bankruptcy we strongly recommend reestablishing your credit if you have not already done so. Sometimes a borrower with a lack of credit is just as hard as approving borrowers with poor credit.VA Home Loans and Guidelines For Bankruptcy and Foreclosures

  A very common question I get is “How soon after my foreclosure can I buy another home?” Most conventional lenders will not allow financing another home after a foreclosure for as much as 12 – 24 months. Obviously, this is an expensive method of owning a home.The next method requires a small down payment (usually 3%) and no closing costs. The Contract for Deed has the home transferred into your name with the financing in place by the seller. Each year the option price (“Strike price”) goes up, but this is negotiable. Should you decide not to buy the home, you will lose your deposit (“option consideration”).