Trying for VA

[mynameainttracy]

We filed 13 in 2008 and were discharged in June 2012. About a year into our plan we realized that if we stayed in our home we would be so underwater on it that we would be stuck there forever or end up selling at such a loss that the whole bk would have been for nothing. After consulting with our attorney we walked away and the house was foreclosed on very quickly. It sold at auction about 10 months after we stopped paying.

Since then, we have relocated to PA and are ready to attempt buying given our credit history. We filed for a preapproval VA loan through NFCU 2 weeks ago and since that time the loan officer has called us for more information, like why did we file bk, why did we recently apply for a credit card, etc. She said that our case was being sent to a committee and we should know by the end of the week but she thought we were in pretty good shape. Both of our credit scores are mid 686 and we both have a credit card through NFCU with no negatives since 2008.

I am hopeful, but it isn't the end of the world if we get denied. We are currently renting and so much of our timeline depends on whether or not we can get a loan that we just need to know one way or another to move forward.

Does anyone have a similar story that ended in success?

[tobee43]

i hope you have or will have better luck then we have. we do have a home we purchased owner financing after of bk. we paid it off in full.

now we are buying another home but even with a huge down payment we couldn't get anything because of still being on the caivrs system (actually until 2016) which means you can't do FHA, VA any government back loan. of course my next question was i just want a conventional small 30-50k and here's few couple hundred thousand down. NOPE...i didn't want another mortgage anyway really, it''s just i wanted to some extras into the house, which we did anyway i just had to keep it practical things like extra 220 and outlets, extra insulation etc...not upgrading the front door or something like i would have liked to.

[BobMango]

We just completed the purchase of a house using a VA loan. I had a house foreclosed in 2009 just before we filed. We were discharged in 2010 and applied for a home loan in April of this year. It was relatively painless, but we did have to provide the BK paperwork, letters of explanation and lots of other financial info, but we were approved pretty quickly.

I'm a NFCU member but had heard they were a little tough so since we bought a newly built house we just went with the builder's mortgage company. I figured they had more of an interest in getting us approved.

Anyway, we closed the end of October with no problems. FICO was in the mid 650s, couple of credit cards since discharge but no other credit of any kind.

Good luck.

[mynameainttracy]

It took them a whole month to break it to us, but NFCU denied our application. They said we will get a letter detailing the reasons, but the loan officer that called us didn't seem very informed so she couldn't give us any detail. She said we should try again in 6 months but we won't. We are in a lease and the timing just wouldn't work so we will try again next year.

We never really ran into any hardships when going through our BK and this was really the first time our feelings ever got hurt because of it. When we talked to NFCU last year about a mortgage they told us what we needed to do so we did that and then we were still denied so that is frustrating. For now we will just wait for the letter and see if we need to establish more credit trade lines, pay down our credit card (we have 1 each) or just give it more time.

[tobee43]

BobMango got their VA loan because they were apparently NOT on the CAIVR list any longer since the bk closed in 2009. once you are on the list doesn't matter at all how good your credit is or not, you will NOT get any government backed loan. that means if you listed your mortgage on your bk and it was a fha, va, or ANY government backed loan you ARE on that list and will be denied for at least 4 years. once i find out we were on the list that explained it...we cannot borrow until 2016...no reason, as our old house isn't even foreclosed on yet. i'm glad we found out we are on the list as at least we know exactly where we stand and appreciate that someone finally gave us a count down point. call the FHA if you had a loan with them and see if you are on that list and you will get the date you can start borrowing for a mortgage again.

at least i found out although i was told there was no such thing as a conventional loan that there is in fact. i can still get one but decided to dig deeper into the savings for the 20-30k of extras on our new place. after a ton of thinking i just never want another mortgage even a little one.

[mynameainttracy]

The house we walked away from was on a conventional loan so we are not on the CAIVR list. We could try some other lenders but we just don't want to. The builder wants us to try their lender, Wells Fargo, but there is no way I'd even bother with them. Wells Fargo owns the company who we did have our mortgage through previously.

[tobee43]

The house we walked away from was on a conventional loan so we are not on the CAIVR list. We could try some other lenders but we just don't want to. The builder wants us to try their lender, Wells Fargo, but there is no way I'd even bother with them. Wells Fargo owns the company who we did have our mortgage through previously.

wells fargo is such a big no no and so bk unfriendly , although i have credit cards with them oddly enough. i just thought with 100% down and owning another home free and clear i wouldn't have a problem getting a small mortgage.

[tobee43]

The house we walked away from was on a conventional loan so we are not on the CAIVR list. We could try some other lenders but we just don't want to. The builder wants us to try their lender, Wells Fargo, but there is no way I'd even bother with them. Wells Fargo owns the company who we did have our mortgage through previously.

i forgot to add.
i guess the VA cares whether it's conventional or FHA... it's what 4 years for a foreclosure and 3 years from a bk?? all not true...it's up to the lender and most are not lending much. although we are just being to see small movements here in our area of fl.

[mynameainttracy]

NFCU told us, for them, it was 1 year on the discharge of the Ch 13 (2 years for a Ch 7) so we are thinking that the fact that there was a house involved was the overall killer. In January we will hit 3 years on the FC of the house. Of course, since they keep and service all their loans they can be as picky as they want. I can only hope that interest rates don't get too out of hand by the time we can qualify again.

[BobMango]

My house that was foreclosed in 2009 was originally financed with VA, but was subsequently refinanced into a conventional and a few years after that was foreclosed. I waited 3 years from the foreclosure to apply and was turned down by a lender that specializes in VA loans, but the builder I went with had no issue.

[tobee43]

My house that was foreclosed in 2009 was originally financed with VA, but was subsequently refinanced into a conventional and a few years after that was foreclosed. I waited 3 years from the foreclosure to apply and was turned down by a lender that specializes in VA loans, but the builder I went with had no issue.

yes, that is an excellent alternative to go via the builders. many finance themselves. understanding that you refin'ed out of the VA makes sense you were able to get a loan.


mynameintracy: ahhhhhhhhhh you were a 13. there is a difference. we were a 7 and surrendered our house.

[mynameainttracy]

So yesterday we finally got the NFCU letters stating reasons for denial. The boxes that were checked were 1)Not enough credit references (I have 3 lines of credit, spouse only has 1), 2)FC and 3)BK

Then there were more specific codes and reasoning for each of us.
Other than the standard couple relating to the BK, for me they said:
1)not enough time had passed since deficiencies (my time is the same as him but he didn't get this reason)
2)I had too high of a utilization on 1 cc (true)
For him they said:
1)too many consumer lines of credit (wait, didn't you just say he didn't have enough)
2)Not enough credit history (wait, didn't you just say he had too many cc's)

Either way, we are working to establish more credit sources by each applying and being approved for a credit card this week. Both of our cars are paid for so and we have no plans to go buy another to give us some history. Other than that time is the only thing we can work for because the FC and BK will not be off of our credit reports until May 2015.

We are lucky to live in a great rental and have awesome landlords so we'll be fine to hang around, try next winter and just keep saving.

[LadyInTheRed]

Pay off your credit card balances! Never charge more than you can pay off each month. The fact that you are carrying balances after filing BK makes you look like you are again on the path to BK.