Home Buying in Temecula>Question Details

Sarah, Home Buyer in 92592

How to use VA loan gaurantee when you have a balance due from previous VA loan comprimise?

Asked by Sarah, 92592 Tue Apr 28, 2009

We bought a house in MD in 1997 that was VA guaranteed. Three years later my husband got orders to move to CA so we sold it. We ended up selling it for less than we bought it. We're trying to buy a house in CA now. We applied for a VA eligibility certificate. We don't exactly understand our options. The letter stats; "We regret to advise you that you do not meet the requirements of the law for restoration bcause VA suffered a loss of $15, 286 in connection with your prior loan and the loss has not been fully repaid." The following paragraph mentions something about a remaining Loan Guaranty Entitlement to possibly obtain another GI Loan. There's a seperate page titled Certificate of Eligibility with an entitlement code 10, if that means anything. What are our options? We could pay up to $6000 of the $15000 we owe the VA. Is it possible to get the rest added onto a new loan or get the sellers to pay it if they want to take $8000 off their listing price and apply it here instead?

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It means you can still qualify for a VA LOAN. Here is how the calculation works;

$417,000 X 25% = $104,250 which is your full entitlement

Now you take your full entitlement and subtract the balance owed

$104,250 - $15,286 = $88,964.00

Multiply the $88,964 X 4 = $355,856 and this is the maximum amount you qualify for WITHOUT paying off the balance owed to VA.

Hope that helps. If you need additional information you can contact me at http://www.deannepowell.com or deanne.powell@wjbradley.com
0 votes Thank Flag Link Thu Nov 5, 2009
Here are the names and numbers of a couple of different lenders that do VA loans in Temecula. i have worked with both of them and they are very knowledgable. Try giving them a call and asking them directly... Robert actually has a Trulia profile. You may be able to contact directly through it.

Robert Chomentowski 858-922-7899 Affinity Mortgage

John Peisner 951-699-1133 Rancho Financial

Good Luck!

Robin Zapata
Realty Executives
0 votes Thank Flag Link Tue Apr 28, 2009
In a nutshell, what you have with a VA loan is a certain amount of "entitlement" which is used up (either partially or entirely) when you take advantage of it. It is also used up if the VA suffers a loss on the sale of your home. Depending on the details, you might or might not be obligated to reimburse the VA, but they will not be of much help to you until you do. Seek out a REALTOR in your area that specializes in VA loans and they can be of help to you. Even MORE helpful, though, will be a LENDER who specializes in VA loans and they can explain fully your options. It could be that you might be better off with an FHA or conventional loan. It's entirely possible that a VA loan isn't your best option (although it usually is, when available).
0 votes Thank Flag Link Tue Apr 28, 2009
Sarah,

I have asked this question to my mortgage broker and here is what he has to say. You are welcome to call him direct. His contact is on there. I would love to work with you for your home buying needs in Temecula area.
====================================================================================
Unfortunately the only way the Veteran’s Administration will restore your Entitlement is if you pay back the deficiency of $15,286.oo. Yes, you could have the Seller pay the balance due.



Frank
Gronlund Team Loan Partner
951-695-0902 fax 951-695-0960
====================================================================================

Warmest Regards,

UTPAL 'Paul' PARIKH, Certified ABR,CSP,e-PRO,GRI,SRES,REALTOR
V.P - Membership WCR, SouthWest Riverside County Chapter.


Lic# 01503821

Direct: 619-990-9901
Office: 951-304-1200

Email: RealtorUtpal@yahoo.com

Website: http://www.951BuySell.com Riverside County
Investment - Commercial - Residential - Business - Rentals
Keller Williams Realty, 27290 Madison Ave, Ste 200, Temecula, CA 92590
0 votes Thank Flag Link Tue Apr 28, 2009
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