VA Loans and Derogatory Item Waiting Periods for Borrowers Part Three of the series
I have written a couple posts previously about Conventional Loans and the waiting periods as well as the details, that it entails to have a clean slate. Needless to say VA Loans have different Waiting Periods:
If a borrower had a Bankruptcy Chapter 7 the Waiting period is 2 years from the Bankruptcy Discharge date. Just like other loans the borrower must have reestablished credit history.
If the borrower had a Bankruptcy Chapter 13 then the waiting period is one year from the Bankruptcy date, provided the borrower has a re-established credit history and extenuating circumstances. The lender is required to include Bankruptcy payback payments into the Debt Ratios. In addition, the borrower must obtain court approval prior to entering into a purchase contract.
If the borrower had a Foreclosure, then the waiting period is 2 years from the Foreclosure date in which title was transferred back to the Lien Holder.
Short Sales require a 2 year waiting period from the date title was transferred to the new Lien Holder and the borrower must have a re-established credit history.
I hope this information will be of help to those who have had difficulties financially due to the downturn of the economy. Personally I wish I would not need to write about this, but there are so many who have been in these situations and I want to give them hope that the times are shorter than they realize to get back on track and purchase a home again.
If you are considering buying or selling a home, a luxury home, luxury investment real estate, luxury vacation homes, or luxury beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Marina Del Rey, Venice or Malibu, feel free to contact me at310.486.1002 (m) or homes@endrebarath.com or visit one of my websites at http://www.endrebarath.com. I am a Pet Friendly Realtor and I contribute a portion of my commission to local animal rescue organizations.
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