How Long After the Foreclosure of a VA Loan Can You Reinstate the Eligibility?

After foreclosure, VA loan eligibility can take time.
After foreclosure, VA loan eligibility can take time. (Image: castellammare di stabia image by euforbo from

Judgment Recovery

In most cases, according to loan experts like those at VA, all judgments must be paid in full in order to have eligibility reinstated. If this is accomplished, eligibility can be reinstated almost immediately if the veteran has proof of the paid judgment and it has cleared the court system. The good news is that the VA does look at each case individually prior to rendering a decision.

No Recovery from Federal Judgments

Federal judgments, such as defaulted student loans, tax liens or even back child support, will negate any chance at eligibility for a VA-backed loan. In addition, prior foreclosure on a VA loan resulting in a judgment for an unpaid balance will result in an automatic denial of eligibility moving forward.

Bottom Line

According to the guidelines on the Department of Veterans Affairs website, guaranty amounts (i.e. eligibility) amounts will vary. After foreclosure and a judgment, eligibility can take two years or longer to be reinstated. Conversely, judgments for credit card accounts or unsecured debt can be cleared quickly by paying the debt, restoring eligibility in as little as 30 days. The best strategy is to speak with a qualified VA loan representative about a your situation prior to making an assumption about approvals or eligibility.

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