VA Program Enhancements

HomeBridge is pleased to announce enhancements to the VA program as detailed below.

Chapter 13 Bankruptcy

A veteran with a Chapter 13 bankruptcy will now be eligible subject to the following:

  • If the veteran has finished making all payments and the payments were paid satisfactorily, the veteran is considered to have re-established credit.
  • If the veteran has not finished making all payments the veteran is eligible subject to:
    • A minimum of 12-months’ payments have been made satisfactorily, and
    • The trustee or bankruptcy judge provides written permission for the veteran to enter into the mortgage transaction.

Conversion of a Principal Residence

HomeBridge will now follow VA guidelines, as detailed below, for the conversion of a principal residence and will no longer require 30% equity in the property or 6 months PITI reserves.

When a veteran is converting their existing residence to an investment property, the prospective rental income may be used to offset the mortgage payment on the rental property. Rental income may not be included in the effective income.

If the veteran has a rental agreement it must be provided. If there is no rental agreement, the prospective rental income may still be considered if the local rental market is determined to be strong and the property will probably not be difficult to rent. Realtors/appraisers are examples of parties who can identify local rental market trends.

The updated VA Program matrix has been posted on the website at www.homebridgewholesale.com.

If you have any questions, please contact your Account Executive.