The benefits of a VA Loan are many. If a buyer who qualifies for a VA home loan has had a short sale in the past, he/she may qualify for a VA home loan just 2 short years later.
A person can qualify for a VA backed loan if they are:
- A veteran
- Active duty personnel
- Reservists/National Guard members
- Some surviving spouses
Short sales are very common especially in California with the decline in property values that started in 2008. Homeowners sold their homes with a short sale, meaning that they sold it then less for what was owed on it with the approval of their lender. For example, a homeowner/buyer purchased a house in 2005 using a VA home loan for $375,000. In 2008, the house was worth $290,000, significantly less than what he/she paid for it. The homeowner sold his house in 2009 in a short sale selling it for $289,000 with the lenders approval. ( The lender agreed to take less than what is owed). Today, that homeowner could qualify once again for another VA backed home loan to purchase another house. This is the perfect time for borrowers to do so since interest rates and property prices are at some lowest prices.
What determines the 2 year period is the date of when the deed of property was transferred out of a homeowners name. A loan officer Rob Chomentowski can look up for you when this date of deed of property was transferred. If it occurred more than 2 years ago, you may be eligible for another VA home loan, bringing you closer to the dream of owning a house again. Even if your credit score is not perfect, you may still qualify for a VA home loan. By contacting us, we can help you find out if owning a home is possible.
Below are some other highlights of VA home loans in California:
- VA loan limits for 100% financing in Orange County, Los Angeles, Anaheim, and Santa Ana are $700,000. Santa Barbara VA loan limit is $710,000. VA loan limits in San Francisco, Oakland, San Jose are $1 million. San Diego VA loan limits are $546,250. VA loan limits in Sacramento, Riverside, San Bernardino, Redding, Fresno, Bakersfield and a lot of the rest of the state are $417,000.
- VA goes to 100% financing and had NO monthly mortgage insurance
- VA loan credit scores do not have to perfect, call or email us for a consultation if you would like to discuss your credit score