VA Loans

VA Loans: The VA Mortgage Loan Program

The VA Loan program is a popular option for Veterans who have had a short sale or foreclosure in their past because it is one of the mortgage programs with the shortest waiting periods.

The VA loan program doesn’t mean that the VA lends you money – they simply insure the loan against default.  In the event that the borrower defaults on a loan, the VA then insures the lender against loss to an agreed-upon amount.  Because of this insurance that is in place, lenders like lending money to Veterans for VA loans – they are considered a “quality” loan when done according to VA loan guidelines.

VA loan highlights include:

  • 100% financing for new home purchases
  • No mortgage insurance required
  • No prepay penalty for any VA loan
  • VA loans have similar closing costs to other loans, even though they offer 100% financing
  • A one time funding fee is charged – but can rolled into the loan

VA Loan Waiting Periods

VA loan after  a bankruptcy: The waiting period for a VA loan after a bankruptcy is 2 years for most VA lenders.

VA loan after short sale: The waiting period for a VA loan can be as little as one month under the right circumstances.  If you have not missed any mortgage payments prior to the final short sale and you have a 620 or higher credit score, there is a chance that you could get an automated underwriting approval and get a VA loan.  Work with a loan officer who is a VA loan expert if you are in this situation.

If you had late payments prior to the short sale, expect most lenders to tell you that you are going to have to wait 2 years  and have no late payments on any credit account in the last 12 months prior to applying for a VA loan.

VA loan after foreclosure: The waiting period for a VA loan after a foreclosure is 2 years for most VA lenders.

VA loan after deed-in-lieu: The waiting period for a VA loan after a deed-in-lieu of foreclosure for most lenders is 2 years.

VA Loans: The Certificate of Eligibility

When applying for a VA loan, it will be required that you have a Certificate of Eligibility from the VA and it must be in your loan package in order to qualify for a VA home loan. In the event that you are unable to locate your Certificate of Eligibility, your loan officer should be able to help you locate a copy of it.

VA Loans: Find The Right Lender

VA loans are obtained through VA lenders – meaning the lender has been approved by the VA to loan money to Veterans who qualify.  Finding the right loan officer at an approved VA lender is the key to getting qualified. An experienced Loan Officer who understands VA lending may be able to help you purchase before the standard 2 year waiting period – contact us and we are happy to help you with your VA loan.