Typically, the waiting period to get a VA loan after a short sale is two years, if you have made late payments leading up to the short sale. If you have not made late mortgage payments, there is no waiting period.
Furthermore, can I use VA loan to buy foreclosure?
VA loans can be used to purchase foreclosed properties as long as the VA guidelines are met. Foreclosures are controlled by the servicer of the loan and are usually sold in two different ways. … If repairs are needed before the home can pass VA appraisal/inspection, often the buyer will pay for them and incur the risk.
Regarding this, can you get another VA loan after a short sale?
As long as the borrower is up to date on their payments and was up to date on their mortgage at the time of the short sale, then they should be able to qualify for a second VA loan as soon as the day after their short sale is closed.
Does VA loan cover short sales?
VA loans can be used to purchase short sale properties as long as VA guidelines are met. Short sales are the result of a delinquent loan, and the borrower and mortgage servicer have agreed to sell the home at a discount to avoid foreclosure proceedings.
How do I find out how much VA loan entitlement I have left?
Remember that the VA guarantees up to 25% of your loan. To find out how much of your entitlement you’ve used, simply multiply your loan amount by 0.25. You’ll also need to determine your county’s conforming loan limit.
How do I restore my VA Entitlement after a short sale?
Borrowers who decide to apply for a new VA mortgage after the waiting period must apply to have their VA loan eligibility restored by filing a copy of VA Form 26-1880 to the Winston-Salem Eligibility Center. The VA will process the paperwork and let the lender and applicant know when restoration is official.
What is a short sale home?
A short sale, also known as a pre-foreclosure sale, is when you sell your home for less than the balance remaining on your mortgage. If your mortgage servicer agrees to a short sale, you can sell your home and pay off a portion of your mortgage balance with the proceeds.
What is a VA compromise claim?
COMPROMISE AGREEMENT INFORMATION
If the borrower is unable to sell the property for an amount that is greater than or equal to what he/she owes on the loan, including closing costs, VA may pay a “compromise claim” for the difference in order to allow the private sale to go through.
What is a VA waiting period?
While the VA doesn’t set a required waiting period, or seasoning period, for VA loan short sales, lenders typically do. The short sale waiting period on a VA loan is often two years.
What is equity reserves on a VA loan?
What are VA loan equity reserves? The term “VA loan equity reserves” refers to how much equity you’ve built up in your property. It’s typically used by unscrupulous lenders in solicitations — often in the mail — to get borrowers to refinance their loans (even when they may not need to or benefit from it).