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What is VA guidelines with a short sale?

by leilaamin17 from Agoura Hills, California. Dec 22nd 2015 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,722 contributions

More info needed.. If your previous short sale was a VA loan, then you need to check to see if you have any remaining entitlement.. That being said, the mandatory waiting period to obtain VA financing after a short sale is 2 years, however 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 make lending rules different from one lender to another.. and most lenders will make you wait 3 years.. There are lenders who will do VA after 2, but most will require 3.. for this reason, if you're looking to get financing, I suggest you 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

Dec 22nd 2015
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,240 contributions

Actually, VA does not have written policy for short sales, however underwriters must apply prudent underwriting on these loans which, especially if in the past couple years, means the borrower needs to have a good "story" for the reason behind the short sale and must otherwise be a qualified buyer. If the short-sale mortgage was also VA they must have sufficient remaining entitlement to support the new purchase. I've had one approved previously but it really depends on the details of the application.

Dec 23rd 2015
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Hi there VA guidelines are 2 years from a derogatory events such as a bankruptcy foreclosure or short sale. That date will be determined from the trustee sale on public records. Hope that helps! If I can answer any questions you can reach me at 702-326-7866 thanks Aundrea

Dec 23rd 2015
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