This week, our nation celebrated its veterans of the armed forces. In light of that, it seems appropriate to remind veterans who have walked away from a home due to foreclosure about the possibility of returning to home ownership through a VA loan.
With VA eligibility, a veteran can purchase 24 months after a foreclosure or short sale. VA loans do not require any down payment. There is a VA funding fee that can get financed into the loan. APR for these loans is currently in the high 3% to low 4% range.
As part of qualification for a VA loan after foreclosure, a borrower will have to explain the circumstances that lead to foreclosure on the house. A VA loan borrower will also have to demonstrate that their credit has been reestablished since the foreclosure. In addition, a borrower will need to show that their debt to income ratio is 55% or lower.
This is an exceptionally forgiving and beneficial program for any veteran who is seeking to return to home ownership after foreclosure.
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