can a va loan be foregiven when there was a divorce and bankruptcy had to be filed because there was no longer enough income?

Each person's situation has to be looked at with all necessary details reviewed. Outside of a short sale on a property per agreement with the lender to accept less than the original loan amount things are looked at a little more harshly...if there was a foreclosure. There is a typical waiting period of 2 years to be able to get a VA loan after a foreclosure. We do loans shortly after a foreclosure, but not VA loans and typically we will require 25% down payment and rates will be a bit higher, yet still better than a hard money loan. Considering many lenders require 5 or 7 years to go buy from a foreclosure two years is not bad per a VA guarantee insured loan!

I mentioned two years, typically, you would wait after a foreclosure. However, that may be the practice of many lenders but it is not a VA requirement...simply an overlay from the lender who still must take on risk. I apologize for not providing further information regarding that which I would normally in a phone or email consultation. The VA will subtract the amount they lost from your eligibility so that you can use the remaining eligibility amount towards a loan. However, your overall credit situation will be scrutinized by whatever lender provides the VA loan. We do not exclude a borrower automatically for a recent foreclosure now. We would look at overall credit history, etc. and yes, it is possible you could still get a loan not long after a foreclosure.