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This further means that you do not have to put down any down payment to purchase the home.
Although the loan is guaranteed by the VA, you still have to approach a normal mortgage lender to get the loan. You can get a VA loan from a bank or mortgage company. There are certain VA loan restrictions that are in place to ensure that the lender and the borrower are not put in a tricky situation.
VA Loan Restrictions:
- You have to wait for 12 months after bankruptcy to apply for a VA loan. During this period, you have to establish a satisfactory credit by keeping up-to-date with all your payments.
- The underwriter has to analyze the overall credit pattern rather than isolated incidents when checking the borrower’s credit.
- Lack of credit history is not a deterrent for getting a loan approval. If there is no credit history, the underwriter has to take into account payment history like rent, phone bills and utility bills to establish satisfactory credit history.
- After filing for Chapter 7 bankruptcy, a veteran has to wait for 2 years after the discharge date before applying for a VA loan. You will have to give full explanation for the bankruptcy and you will also have to re-establish your credit while being financially stable.
- In case the veteran has applied for Chapter 13 bankruptcy, he will have to seek written approval from the court trustee to get approval for a VA loan. In addition, the veteran would have to make regular payments for at least a year to demonstrate satisfactory credit.
- If a veteran’s previous residence was foreclosed, he is not eligible for a VA insured mortgage loan. If the foreclosure was for a VA loan, the veteran may not have a full entitlement for a new VA loan.
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The first step in getting a VA loan is to get an appraisal. VA (Veterans Administration) regulates that all appraisals must be done by VA approved appraisers to protect Veterans. You can request a VA appraisal by filing out VA Form 26-1805, Request for Determination of Reasonable Value. 
