Past Credit issues and your VA Loan

• Do past credit issues effect my ability to get a VA Home Loan?
• Can I get a VA Home Loan if I have filed bankruptcy?
• I heard VA appraisers can make a purchase difficult, is this true?

Do past credit issues effect my ability to get a VA Home Loan?

VA Home Loan approval is not determined by the borrowers credit score as much it is by the borrower’s recent credit history in the past 12 months. So if you have had some credit issues in the past, but have been on time with your payments in the past 12 months then there is a good chance you can get approved for a VA Home Loan. If a credit issue did recently occur due to a situation out of your control, then you may be able to write a letter of explanation which a VA Home Loan underwriter will review and consider in making the approval decision. If you have questions or concerns about your specific credit situation the best thing to do is contact a VA Loan Specialist who can help you assess your situation and determine the best route to get you approved for a home loan.

Can I get a VA Home Loan if I have filed bankruptcy?

Yes, but there are conditions. If the borrower has a Chapter 13 bankruptcy then it must be at least 12 months since the bankruptcy discharge date before the borrower can obtain a VA Home Loan. If the bankruptcy was a Chapter 7 bankruptcy then it must be 24 months from the discharge date. Also, the borrower must have a relatively clean credit history since the bankruptcy with no late payments or collection accounts.

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I heard VA appraisers can make a purchase difficult, is this true?

There is not any truth to this statement. VA Appraisers are randomly selected by the VA from a pool of registered appraisers in the area of the home purchase. This is done to protect the Veteran borrower and the VA who is guaranteeing the loan. They are ensuring that the home is not being purchased for over market value and that the home meets certain safety and quality guidelines.

Most VA approved appraisers are also “regular” appraisers who do appraisals for conventional loans as well. They register with VA in order to obtain extra work and provide a service to Veterans. They are not any easier, or more difficult to work with than any other appraiser. Like all appraisers, they are independent 3rd parties hired to assess the value of a property.