Home Buying in San Diego>Question Details

Jameskerry41, Home Buyer in San Diego, CA

Does the VA or Calvet home loan require 'sit outs' for persons who sold their home on short sale? (I sold a home on short sale less than

Asked by Jameskerry41, San Diego, CA Thu Sep 29, 2011

one year ago)

Help the community by answering this question:


VA states that short sale must be 24 months after the transfer of the deed to the new owners.
FHA states, just recently, that if that short sale is due to a significant loss (20% or more) in income and can be documented, you are able to qualify for a new home loan without the waiting period. You must, of course, demonstrate that your credit was clean prior to the short sale and that it has continued to stay clean once the house was sold.
0 votes Thank Flag Link Mon Aug 26, 2013
You may qualify to purchase a home just 1 day after a short sale. Check if you qualify for a mortgage. Try http://www.whywaitbuytoday.com
0 votes Thank Flag Link Sat Aug 17, 2013
thank u Joyce; please see my reply two post down everything worked out at for me- and at the absolute best possible time to buy a house. This site is incredible, thank you all again :)
Flag Sat Aug 17, 2013
Good Afternoon,

We are a direct VA lender and we have no waiting period after a short sale if you were fortunate enough to sell and not go delinquent on your mortgage at time of sale.

Feel free to look me up for more information.


0 votes Thank Flag Link Mon May 13, 2013
thanks all for your answers! update: I WAS able to go VA- and even less than 2 yrs (sssh don't tell anyone). And I also had a conventional loan option as well which was able to provide a loan for me less than two years as well (about 20 months -vs-24). Nobody seemed to care. To those going through short sale, two years was all I had to wait on both a VA and conventional loan. In fact the only reason I went VA was solely because it save me from buying mandatory mortgage insurance. And although a down payment was not needed, I put a sizable down to keep my monthly payments low.Also for what it's worth I was able to lock in at 3.75% 'conventional' 30 yr fixed, no frills, no surprises....it gets better- after 6 months I was able to REFI at 3.2% conventional 30 yr fixed. I'm happy since this saves me about $150 a month on my mortgage. FARRRRRR better than the 6.8% rate I had on my home before my divorce in '09. My advice for those on short sale- keep your head up and be patient! use the 2 yr wait out for saving for a good dn payment or furniture! Lastly, thank you Trulia community for the extremely helpful and good advice!
0 votes Thank Flag Link Mon May 13, 2013
I had a short sale last year and my Realtor recommend http://www.cfs-mortgage.com/flex for a home loan. I am very happy to be able to purchase again.
0 votes Thank Flag Link Sun May 12, 2013
Thank you, Carl, for taking the time to respond with a clear an concise answer! I didn't know about that VA clause, and I'm sure most other agents didn't either.

James, at least you won't have to worry about home prices going up anytime in most areas. You have plenty of time to look, and you may even be able to take advantage of someone else's short sale when the time comes. Just try to stay on a month-to-month lease so you have more flexibility.

0 votes Thank Flag Link Mon Oct 3, 2011
Borrowers are required to wait for two years before applying for a new VA home loan. A qualifying credit score and a record of dependable payments during the waiting period following a short sale is required.

Borrowers must apply to have their VA loan eligibility restored by filing a copy of VA Form 26-1880 to the Winston-Salem Eligibility Center.

One thing could prevent a buyer from getting eligibility restored right away. If the VA paid a compromise claim as part of a short sale, the borrower may be indebted to the government as a result of that claim. The Department of Veterans Affairs may not restore eligibility if the applicant still owes money to the government.

Here is the specific wording:

“…although the veteran’s debt was waived by VA, the Government still suffered a loss on the loan. The law does not permit the used portion of the veteran’s eligibility to be restored until the loss has been repaid in full.”

If a VA loan applicant is notified that a debt to the government exists, or was aware of the debt prior to applying for the loan, the applicant should contact the VA directly to work out the details of repayment before applying for a new VA mortgage.

A borrower may still be able to take advantage of any unused VA loan eligibility. Any remaining entitlement may be allowed if a borrower did not use the full entitlement on the previous VA mortgage.

A borrower’s debt for a compromise claim may be factored into the debt-to-income ratio, unless the lender feels the compromise claim debt is too great compared to other financial factors. That debt may result in the need for a down payment, or a larger down payment than usual – requirements will vary from lender to lender.
0 votes Thank Flag Link Fri Sep 30, 2011
Thanks for your question James. The true answer to your question is a moving target. The rules are changing daily when it comes to short sales and when one can buy after such an event. I've heard that one can buy another home after short selling their home as early as 18 months. Now, of course, this will depend on many things, including your current FICO (credit) score from the three major agencies. Your best bet would be to contact a skilled seasoned lender, such as Bill Mulcahey @ 858.633.4906 and/or bill@billmulcahey.com, to find out what your specific situation might be. Once he tells you "Your good to go.", then contact me @ 619.741.8259 and/or Rainy@RichardRealtyGroup.com and we can find you that new home.

FYI: I understand there are loans out there today that will allow a homeowner to concurrently sell their current home short and buy another at the same time. Again, certain criteria applies and you should contact Bill above for your particular situation.

P.S. If for some reason you don't qualify today, Bill will be able to get your credit to a point to allow you to save money when you do qualify in the near future.
0 votes Thank Flag Link Fri Sep 30, 2011
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