Bankruptcy VA Mortgage Loan Requirements
Chapter 7 : 2 years from discharge date
•Chapter 13: No seasoning required if discharged. If open requires court approval and 0x30 last 12 months to trustee.
Borrower must demonstrate re-established credit since dismissal from Bankruptcy.
Judgments VA Mortgage Loan Requirements
•Judgments must be paid or in a repayment plan for 12 months with a most recent 0x30x12 timely payments.
Student Loans VA Mortgage Loan Requirements
•Monthly payment does not need to be considered if the Veteran or borrower provides written evidence that the student loan debt will be deferred at least 12 months beyond the date of closing
•Use payment shown on credit report (unless credit report reflects $0 or no payment amount).
Use Balance x 5% / 12 for payment
Foreclosure and VA Mortgage Loan Requirements
•Foreclosure - 2 years removed from sale date of home
Collection Accounts and VA Mortgage Loan Requirements
•Collection and charge-offs are generally not required to be paid off, however follow Desktop Underwriting Findings through Fannie Mae DU or Freddie Mac LP Findings automated underwriting systems if payoff is required.
•A letter of explanation is required for all collection/charge-off/judgment accounts.
•Collections and charge offs must be included in DTI at the amount on credit or 5% of balance if no payment shown.
•Borrowers with a history of collection/charge-off accounts should have re-established a 12 month satisfactory credit history.
American Mortgage Solutions, Inc.
10602 Timberwood Circle Suite 3
