People are getting VA loans on short sales all the time.
My husband is also a veteran. Let me see if I can give you a complete answer. :)
For clarity's sake, however, the VA doesn't actually issue home loans, but it does provide guarantees that protect the lender should the borrower default, much like Federal Housing Administration lending program guarantees. These guarantees allow the lender to waive down payment requirements and offer more favorable interest rates and other terms to the buyer. Most veterans, as you may know, are eligible for a $36,000 basic entitlement plus a $68,250 bonus entitlement for a total of $104,250, though lenders will typically lend four times that amount with no down payment required -- even more in certain counties where the cost of living is higher.(500,000 in San DIego County)
You should know, however, that short sales can be exasperating because they frequently fall apart after months of work. Also, the VA has stricter appraisal requirements regarding a home's condition than conventional lending programs do, which is relevant because short-sale sellers are distressed and typically have no motivation or money to make repairs. Moreover, the VA more closely restricts what can and can't be paid for by the home purchaser.
That doesn't mean you shouldn't pursue a VA-backed short-sale property purchase, especially if you're getting a great deal on what you consider an ideal home. But be sure to seek out a broker experienced in both short sales and VA loans; there should be plenty out there given the market's recent history and the number of veterans seeking housing. Agent experience is significant because short sales typically require patience and constant communication with a variety of players such as other agents, loan officers, guarantors and escrow and title companies. Such an agent can help you structure an offer that's competitive with offers that don't require the sellers to incur a number of costs the way VA loans do. But be prepared to hang in there at least three months or perhaps longer.
If you don't have your heart set on one specific short-sale home, target several to broaden your possibilities and diminish your disappointment should a deal fall apart. Hint: Deals involving foreclosed homes already owned by banks are typically smoother and move along much faster.
Good luck in your homebuying. If you would like assistance, please just email or call! julianne @sd-realtor.com
So ... if you want to use an VA Loan you will need to make sure that the house would qualify for VA Financing and if not, is the Seller willing to pay for any repairs necessary to comply with VA Financing.
I would recommend looking at all your options for financing that you have available.
Hope this helps - Kimberlee Frank
FIrst of all Golden Hill/ South Park is such an awesome part of our county, there are some really great homes available there! To answer your question, your VA financing should not affect your ability to buy a short sale. Short sales are a rough sea to navigate, so please feel free to contact me directly to assist you, as I have a lot of useful experience. Looking forward to hearing from you,
Having a VA loan doesn't pose a problem with short sales at all. Just so you know, the price you buy a short sale property for is determined by the bank that hold's the seller's loan, and they want what they want. You're not always going to get a good deal, and only two to three short sales even close. Keep REO's in mind too (bank owned homes). The price is already set, although some are listed low to generate offers (MANY short sales are), but if it's on the market and you have an offer that's accepted by the bank, you can close in 30 days usually.
Let me know if you need any further help.
Thanks for serving our country. You should not have a problem buying a short sale, foreclosure (REO) or regular purchase just because of the fact that you are using your VA eligibility. The offer just has to be structured properly so it is attractive to the seller or bank holding the loan on the short sale property.
However, if you are looking for a condo/townhome not all projects are VA approved so that will limit you. But don't let that worry you since there are many VA approved condo projects we would just have to find the right one.
I can set up a search for you that will keep you informed of homes that are on the market that are VA eligible.
I also recommend using a direct lender for VA since it will keep your closing costs lower. This is important if we decide to ask the seller to pay some or all of your closing costs.
I would like to help you find a home so please contact me at your convenience and we can start looking for a home for you.
I am never too busy for your referrals
The San Diego Property Shop
CA DRE # 00648687
I can help you with this.
Just give me a call at 619-398-3885 to discuss your options.
We have an in-house lender that's very successful making loans and can save you a great deal of money.
Check our company out at http://www.argsd.com
Please let me know how I can help you get what you want!
Web Reference: http://www.argsd.com
As long as you qualify for VA financing, you should have no problem at all finding a good short sale to submit an offer on!
If you need any help at all finding a good REALTOR or mortgage broker in your area, please let me know! I'd be happy to assist getting you into the right hands.
Your Castle Real Estate
p: (720) 988-5952
Short sales are tough with ANY kind of financing (unless it's an all-cash deal). But IF you have patience and time, you could have an opportunity to purchase a great home to live in!
Please don't be discouraged to try short sales just b/c you will be using a VA loan. I have helped many veterans in the past and can help you too...
Please call/email if you are interested in interviewing me or need more information...619.857.5044 or email@example.com.
Best of Luck!
Sasha Harvey----San Diego Castles Realty
Voted 1st runner-up in Union Tribune's "San Diego's BEST Real Estate Agent-2011" Readers Poll!
I have had buyers that have been able to purchase a short sale using VA financing. If you are looking for a condo, you do need to make sure that the complex is VA approved. The other issue with VA financing is that the home needs to meet "health and safety" standards, meaning that there can be no peeling paint, cracked slabs, mold and all appliances need to be there. Finally, the VA requires a full termite clearance prior to the close of escrow. In a short sale, the bank that is short will not pay for that, so you would have to pay for it.
While that sounds like a lot of obstacles to purchasing a short sale using VA financing it really is not. If you are not represented by an agent and would like to discuss this further please feel free to contact me.
Prudential California Realty
The biggest obstacle will be the home meeting VA qualifying conditions. Short sales are typically as is, as the owner is generally in financial distress and can't make repairs. If you are willing to pay for the repairs before it closes to meet any issues raised by the appraiser, your odds go up, but there is still risk that the deal won't close.
Short sales can take from 3-9 months to close and many may never close. This could happen, but it would be a series of medium to long shots all falling together in order to come out successful at the other end. I don't mean to discourage you, but the truth is the truth.
I wrote a blog post on the anatomy of a short sale. I think this may give you an idea of the potential complexity before adding in VA financing. I've attached a link below.