At some point in your life, you may have had financial difficulty. You may have even had to apply for bankruptcy in order to make ends meet. However, you should not be convinced that simply because you had to declare bankruptcy at some point in your life, that you are no longer eligible for a loan. You are still eligible for a VA Loan, despite a rocky financial history. The requirements for applying for a VA Loan after you have filed for bankruptcy are not difficult to fulfill.

You must wait until two years have lapsed since you were discharged from bankruptcy in order to apply for a loan. At this time, you need to have good credit established, and you need to have proof of long-term employment. The lender wants to make sure that you, as the borrower of the money, are standing on your own two feet before they lend you the money you need to buy or refinance a home. You must provide the full explanation of your bankruptcy, and any other extenuating circumstances which may have affected your finances, or any circumstance that are still affecting your finances.

Start Your Loan Request

When you are applying for a VA Loan, it is to your benefit to be as detailed as possible while describing your financial record. Although you may fear that this will hinder your ability to get a loan, you may find that it will actually help you. The lenders and underwriters may have financial advice for you that could help you better your situation. For example, you may let the fact that you have a little debt collection turn you away from applying for a loan. If it is not a substantial amount of money, the underwriters may waive it, and approve you for a loan. However, it is best to meet with a local lender before applying for a loan, that way you can ensure that everything is in order.

Back to the Veterans' Loan Handbook Table of Contents.