I am active duty military in Las Vegas, NV and have orders for a PCS to Reno, NV. Any chance of a loan after a short sale?

Asked by Eric, 20744 Sun Jan 9, 2011

I am current on payments and do not want to go into default becasue of the affects on my credit. My current loan is FHA. Is there any chance I could get a VA lender to make a loan? Ironically my debt to income ratio will be even better since the housing market we are looking at is about 100,000 less than what I paid for the Las Vegas house in 2006.

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Tony McMahon, Agent, WHITE PLAINS, MD
Sun Jan 9, 2011
Hi Eric, have you heard of the HAP program for military members such as yourself. If you meet the criteria the Government will cover the short for you. I have helped a military member sell an also helped another client purchase HAP transactions recently . Please click on the link below to view the HAP website. Both military members were well over 100,000 upside down and the HAP funds covered the difference thus there was no shortsale and no hit on their credit. God Bless The USA.
Web Reference:  http://hap.usace.army.mil/
1 vote
Carolyn Thom…, Agent, Rockville, MD
Sun Jun 26, 2011
I've found the answers fascinating and goes to show that it is important to reach as broad or an audience of professionals as possible, as there are such a variance of opinions.

I've heard of buyers buying the day after they've done short sales, but don't personally know about VA. Last I heard, our parent company was not doing them immediately following short sales. That certainly doesn't mean that they don't exist.

Many people don't realize that there are still 100% loan programs out there with 100% financing and 30 year fixed rates. I would have said that this was impossible, as I hadn't seen it in several years.

So, you posted in January. How did you make out?
0 votes
Samson Doyle, Mortgage Broker Or Lender, Columbia, MD
Fri Jun 24, 2011
I Currently have a client who went through a short sale in GA and is currently in the military. They were on time with thier payments and will be moving into a new home in July using VA financing. VA has no qualms on short sales if your were up to date and had to relocate because of work.

-Samson Doyle #324235
0 votes
Mary Wagner, Agent, Crofton, MD
Mon Jan 10, 2011
Hi Eric
You've been given good advice. It will take some time to get a loan after a short sale.
I just wanted to write so I could thank you and your family for your service.
Best of luck. Mary
0 votes
Elliot Ward &…, Agent, Columbia, MD
Sun Jan 9, 2011

I'm glad to hear you are current on your payments. As you know, strong credit score and history, as well as income and debt ratios are all necessary for a future mortgage loan, whether it be FHA or VA. Have you contacted any experienced mortgage loan officers yet? Lenders like David Calkins at Presidential Mortgage (here in Columbia, MD) have been counseling many of our military clients with needs such as yours for years. I provided a link with his contact information below. Also, I would agree with Tony's recommendation in researching programs like the Homeowners Assistance Program (HAP). Would you consider locating a tenant and rental management company for your Las Vegas home? In extreme circumstances, even if your PITI is more than the rental income, this might help your debt-to-income ratio for loan qualification and also in avoiding the short sale. A financial counselor and/or accountant could be the best guide for you too. Try to find all the personnel support services that are available through your bases. I wish you good luck and thank you for your service to our Country!
0 votes
The Roskelly…, Agent, Gambrills, MD
Sun Jan 9, 2011
Hi Eric,

You'll need to put some time and space between you and that short sale before a lender will look at you for a new loan.
0 votes
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