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We had a short sale in 2013, and wondered if we are eligible for a new VA loan? Credit scores are in the 640-660 range.

by trinity72 from Lindside, West Virginia. Jan 8th 2016 Reply


Christina Hayes (CreditRepairExpert)
#8 ranked lender in Tennessee - 68 contributions

Two years is the general waiting period for a VA backed mortgage after a short sale. Other factors will be looked at such as A veteran borrower may be eligible for a new VA loan without a waiting period if the borrower made all mortgage payments within the month that they were due, for a period of one year prior to the occurrence of the short saleVeterans who maintain a credit score of at least 660 might qualify for a VA loan immediately after a short sale, as long as the short sale is listed as being paid in full on their credit report. This means the mortgage provider can't require repayment of the difference of the loan amount.Best of Luck.Christina Hayes

Jan 9th 2016
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,224 contributions

The previous response was true for that particular lender, but VA does not have any particular policy on short sales. As long as you have re-established good credit and have a good explanation for the short sale there is a good possibilty you could be approved, especialy if it has been 2 years or close to it.

Jan 10th 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

VA has a mandatory waiting period of 2 years, and VA allows for an exception if you meet certain extenuating circumstances/guidelines... Understand that VA does not lend money... they only insure loans against default.. the lenders, or those with the $$$ will oftentimes have their own rules above what VA calls for.. it's these overlays that differ from one lender to the other.. This being said, most lenders do not allow the VA extenuating circumstances/guideline exception and most lenders will make you wait 3 years post short sale. There are lenders that will allow for the exception and the reduced waiting period, but most wont.. so it's best to contact a broker who deals with numerous lenders rather than the local big bank on the corner who only has one set of lending rules.. Also note that If the loan you had a short sale on was VA, then you would have reduced entitlement, meaning you might be limited in how much of a home you would qualify for.. If you want to know for sure, then the best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. 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 NMLS# 226347

Jan 11th 2016
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