How to Purchase a Home with a VA Loan in Chapter 13

Are you an eligible Veteran currently in Chapter 13? Have you made all your payments to the trustee on time along with all your other credit obligations since you filed? Are you tired of renting and ready to move into homeownership? If yes, we may have some good news for you.

If you’re reading this, you’ve likely talked to your bank or another lender and been told they couldn’t help you because you are in active Chapter 13. Or – you’ve applied and gone through several weeks of the loan process to be told that underwriting can’t approve the loan. I’ve been helping financially responsible borrowers to obtain home loans for the past 15 years. Just because you filed Chapter 13 doesn’t always mean you have to wait until you have your discharge. When a new borrower reaches out to me to look into their situation and is in active Chapter 13 repayment, there is often a similar timeline.


1. Something happened outside of the borrowers’ control that led to bills getting behind. Divorce, car accident, job loss, illness or illness of a family member – and many more – caused a drop in income and bill start to pile up.


2. Historically, the borrower has made too much income to file for Chapter 7 and therefore the only option to consolidate and catch back up is filing Chapter 13 per the attorney’s recommendation.


3. Fast forward, the borrower is back on their financial feet and has paid all the trustee payments on time. Other obligations such as housing, auto, utilities, insurance, etc. have also been paid on time. Income has been restored after the initial incident that led to the Chapter 13 and borrower is moving forward in a good way.


Chapter 13 doesn’t always mean you have to wait 5-7 years before purchasing again. You had a legal means to get things turned around after whatever scenario made you have to file for Chapter 13. Since then, you’ve made the payments, are back on track, and you’d like to start building equity for yourself instead of paying for your landlord’s retirement. For eligible Veterans who’d like to purchase a home – here is an overview on the basic requirements (additional conditions may apply):

  • ► Document all housing payments made on time for the previous 24 months. If rent free, document from landlord as such.
  • ► 2 of 3 scores above 580.
  • ► Minimum 12 months on time payments to the Chapter 13 trustee.
  • ► All credit items on time since filing date.
  • ► Trustee or court approval for the transaction. Ask your attorney what the process will be for obtaining approval.
  • ► 1 month post-closing reserves.

Thank you for your service to our great nation. My contact information is below if you’d like to discuss your specific scenario.

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Eric Vander Werff

Loan Officer
NMLS# 107939
C: 206.794.6388
F: 206.292.4215

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Chapter 13 Refinance

Eric worked hard to refinance my FHA home loan even though I was currently in a BK13. No one else would help out but with his and Willamette Valley Banks help my refi went through and saved me some money. Thanks again.

Borrower from Bonney Lake, WA


Let’s Talk Home Loans! I Look Forward to Hearing From You! Eric

Willamette Valley Bank is not currently processing refinance applications in the state of Texas.