HomeBridge is pleased to announce that we have enhanced our VA guidelines regarding borrowers with a previous foreclosure or Chapter 7 bankruptcy as detailed below.
Foreclosure
Borrowers with a foreclosure > 2 years since the completion date to application date are eligible (currently require > 3 years).
Borrowers with a foreclosure completed within the previous 1 – 2 years may be eligible if both of the following conditions are met:
- The foreclosure was due to documented circumstances beyond the borrower’s control (e.g. unemployment, medical bills not covered by insurance, prolonged strike, etc.), and
- The borrowers have obtained credit subsequent to the foreclosure and have made satisfactory payments over a continued period.
As a reminder, borrowers with a previous foreclosure must have re-established credit and no late housing or installment payments after the foreclosure. Documentation of the circumstances and a letter of explanation is required.
Chapter 7 Bankruptcy
HomeBridge will also consider borrowers with a bankruptcy that was discharged within the previous 1-2 years (currently not eligible) if both of the following conditions are met:
- The foreclosure was due to documented circumstances beyond the borrower’s control (e.g. unemployment, medical bills not covered by insurance, prolonged strike, etc.), and
- The borrowers have obtained credit subsequent to the foreclosure and have made satisfactory payments over a continued period.
A letter of explanation for the BK is also required.
The VA guidelines have been updated with this information and posted on the HomeBridge website at www.homebridgewholesale.com
If you have any questions, please contact your Account Executive.
