Posted on: 09th Feb, 2011 04:05 pm
My parents filed for BK 4 years ago. The bank has still not foreclosed on the home that was discharged in the BK. They would like to purchase a small home. Would they qualify for a VA loan even though their name is still on the deed of the home? My dad served in the Navy for many years.
Welcome tracey,
It will be a bit difficult for them to qualify for a new loan as there is already a property listed in their name. Nevertheless, I will suggest them to contact the local VA lenders and apply for a loan and check out if the lenders can help your parents.
It will be a bit difficult for them to qualify for a new loan as there is already a property listed in their name. Nevertheless, I will suggest them to contact the local VA lenders and apply for a loan and check out if the lenders can help your parents.
Do you think they would qualify for FHA or would they run into the same type of problem?
Hi Guest,
It will be same with a FHA loan as well. Unless the property is sold off, I don't think that the lenders will be interested in giving loan to your parents.
It will be same with a FHA loan as well. Unless the property is sold off, I don't think that the lenders will be interested in giving loan to your parents.
Unfortunately, they will probably have to wait about 2 years from the time that the bank actually sells the home. Basically most lenders are going to look at the date on the Trustee's Deed which is used in most states when the home is sold.
If it were me, I'd research renting the property. Then it wouldn't be my primary residence, which would enable me to purchase a home with the VA program. You're past the 2 year bankruptcy seasoning requirement, so no worries there, but there'll probably be some seasoning guidelines with the rental, so ask about that. Use a Loan Officer that only does VA guaranteed home loans, and offers the program from several Lenders.
