Many Idaho veterans today are wondering whether or not they can get an Idaho VA loan if they have recently been through a foreclosure.
Fortunately, the VA qualifying guidelines do allow for veterans and military personnel to qualify for an Idaho VA loan after a foreclosure, but with some restrictions.
For starters, veterans are not eligible for an Idaho VA loan for 2 full years after their foreclosure. After this time veterans are allowed to apply for a loan again, but will face increased scrutiny and will likely have to respond to more questions during the application process.
Remember, while you are eligible to apply for an Idaho VA loan after 2 years, there are additional requirements that must be met which may vary by lender. Simply waiting out the recovery period does not guarantee you loan approval.
Also keep in mind that this rule does not only apply to veterans who previously had a VA loan. Even veterans who have had conventional mortgage foreclosures are subject to the same regulations.
For veterans who do have a recent foreclosure that involved a Idaho VA loan, there are additional restrictions.
First, to restore full entitlement after a VA loan foreclosure, the borrower has to completely pay back the VA the loss of the previously guaranteed amount.
It is possible to use partial-entitlement to get a VA loan, but without full entitlement a down payment will probably be required. Borrowers with past foreclosures will also be asked to provide details regarding the circumstances. If you can show that the cause of your financial trouble and foreclosure were largely out of your control, you may be able to increase your chances for approval.
Some examples of extenuating circumstances include:
- Unforeseen medical bills.
- Job loss.
- Certain lawsuits.
Examples of circumstances which probably won’t be considered to be extenuating are:
- Bankruptcy because of an entrepreneurial business venture.
- Getting divorced.
- Certain lawsuits.
Regardless of the scenario, there is no guarantee of approval or denial as decisions are made on a case-by-case basis.
Lastly, even though the VA does not disqualify veterans from Idaho VA loans after a foreclosure, it can definitely make the application process take longer than it normally would.
A Few Frequently Asked Idaho VA Loan Questions:
Q: How do I apply for a VA guaranteed loan?
A: You can apply for a VA loan with my company who is a mortgage lender that participates in the VA home loan program. At some point you will need to get a Certificate of Eligibility from VA to prove to the lender that you are eligible for a VA loan.
Q: How do I get a Certificate of Eligibility?
A: Complete a Veterans Administration Form 26-1880, Request for a Certificate of Eligibility. You can apply for a Certificate of Eligibility by submitting a completed Veterans Administration Form 26-1880, Request for a Certificate of Eligibility for Home Loan Benefits, to the Winston-Salem Eligibility Center, along with proof of military service.
Q: Can my lender get my Certificate of Eligibility for me?
A: Yes, it’s called Web LGY. Most lenders have access to the Web LGY system. This internet based application can establish eligibility and issue an online Certificate of Eligibility in a matter of seconds. Not all cases can be processed through Web LGY – only those for which VA has sufficient data in our records.
If you have any questions about a Boise Idaho VA mortgage home loan feel free to contact us.
If you have questions about refinancing a current Idaho Va loan with no appraisal contact us.