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Can I use a V.A. home loan a second time if I used it for my first house and then sort sold that house?

by GONZO20G629 from , California. Oct 8th 2014 Reply


Sharon Duffy (sduffy)
#73 ranked lender in Pennsylvania - 595 contributions

What exactly does sort sold mean?

Oct 8th 2014
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William J Acres (William_Acres)
#1 ranked lender in Arizona - 8,556 contributions

Yes, however your entitlement will be reduced by the amount the lender lost when you short sold your home. Here's a quick way to calculate it.. Deduct the amount the lender had to lose by accepting your short sale from $104,250. Take the remaining balance and X it by 4. Example: You owed $150K on a home, but sold it for $120K and the lenders loss was $30K. $104,250 - $30,000= $74,250 X 4 = $297,000 maximum new VA loan amount. If the lender loss was $104,250 or greater, then you have no entitlement left and the only way to use VA financing again would be to pay down or pay off the VA claim. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

Oct 8th 2014
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tom schwarz (axistom)
#208 ranked lender in California - 4 contributions

Yes you can without a problem. If you have a funding fee we can pay it!!!

Oct 8th 2014
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tom schwarz (axistom)
#208 ranked lender in California - 4 contributions

Please call 619-684-5034 for details. No cost VA loan

Oct 8th 2014
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John Burke (jburke)
#30 ranked lender in Texas - 201 contributions

Hi Gonzo, Thank you for your service. The short answer is maybe. Like William said, it will depend on how much entitlement you have left. One mistake that William made is in telling you if the lender loss was $104,250 or greater you wouldn't have any entitlement available. This is only partially true. It depends on what the VA county loan limit is where you want to buy. For example: The VA county loan limit in Alameda County CA is $1,050,000 so if your short sale resulted in VA paying a $104,250 claim you would still have $158,250 in available entitlement which would allow you to buy another home of up to $633,000. Here's the math. $1,050,000 X 25% = $262,500. This is the amount of entitlement you start with. Now subtract the loss of $104,250 to get the amount of entitlement you would have left. $262,500 - $104,250 = $158,250 X 4 = maximum new loan amount of $633,000. | Please feel free to contact me for more information or help. | John Burke | Senior Mortgage Banker | Great Plains National Bank http://www.valoansdoneright.com | (877)228-9069 | Lending in ALL 50 states

Oct 14th 2014
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