Your need to use a VA loan for the purchase of an REO or a Short Sale home has no bearing on the length or difficulty of the sale based on the property type. A VA loan may take longer due to the Appraisal being ordered and the VA appraiser having up to 10 days to complete and submit the appraisal to the lender. The VA loan will also take into account the condition of the property and if there are major appliances missing, the condition of the structure and flooring, as well as the plumbing, A/C heating, and electrical, pool if necessary.
A short sale will take longer for the most part because the 3rd party bank must approve the transaction and there is a loss mitigator involved as a liason between the realtors and the entity that actually owns the note on the property. An REO property is already owned by the bank and there are usually fewer hoops to jump through than a short sale.
I encourage you to use your VA loan, it is one of only two loans out there that has no down payment required and no monthly mortgage insurance, and the interest rates are amazing right now. Some people do not have the full use of the VA loan benefit so your case may be different than others so it is best to talk to a lender.
If you have any other questions I will gladly answer them for you. I have a partner that is a licensed loan originator in California, I am licensed in Arizona.
Licensed Loan Originator
Amerifirst Financial, Inc.
1910 S. Stapley Drive #209
Mesa, AZ 85204
NMLS# 213777 AZ LO-0915068
Apply Online: http://www.mattpuzz.com
In California, dba as Citizens Choice Mortgage