Many homeowners in the state of California over the past few years have found themselves upside down on their homes and may have become unemployed or had other financial hardships. In some cases these homeowners have turned to doing a short sale on their home in order to relieve themselves of the debt of their upside down home. A short sale is when the mortgage balance exceeds the price the homeowner can sell their house for, therefore the homeowner must negotiate with the mortgage holder on their house to reduce that mortgage so they can sell the house.
The good news is you CAN get a VA loan after a short sale. In most cases you will have to wait two years after the date of the short sale to get VA financing on a new home. But you can get a VA loan immediately after a short sale if two factors are present in your short sale:
- You cannot have been late on any mortgage payments leading up to the short sale
- You have to have an extenuating circumstance for short selling that can be fully documented such as relocating for a new job
Some other examples of extenuating circumstances for #2 may be situations such as you have a medical condition (that you can fully document) that requires you to move from a two story to a one story home, or you had break-ins to your home (that you could document with police reports) and had to move to a safer neighborhood for your children. Financial difficulties as a reason for the short sale are not considered an extenuating circumstance that would allow you to get a VA loan immediately after a short sale.
So don’t worry you will be able to use you VA eligibility and get VA financing to buy a home after a short sale. If you had a short sale before January 2009 you are already eligible! Or if you did not miss mortgage payments and have a good extenuating circumstance as noted above, you may be able to buy the next month after your short sale. So send me an email at homeloan8@gmail.com or call at 858-922-7899 to discuss getting approved for a VA loan.
Here are some of the latest up-to-date advantages of VA financing in California:
- VA loan limits in California go to $1 million with 100% financing in San Francisco, San Mateo, Alameda and other Bay Area Counties. Los Angeles and Orange County VA loan limits are $700,000 with zero down. San Diego VA loan limit is $537,500 with zero down. You can go above these limits with a small amount down.
- VA jumbo loans can be a good choice for VA eligible borrowers to do a VA refinance loan out of their jumbo non-VA California loans. VA can offer lower rates than conventional jumbo loans.
- VA financing waives the funding fee for veterans with ANY disability rating
- VA loan credit does not have to be perfect. You just need a 620 score and if you are below that call or email us and we can work with you to raise your score.
So don’t hesitate to call 858-922-7899 or email homeloan8@gmail.com if you have questions about VA loans or would like to be approved for VA financing.
Regards,
Rob Chomentowski
858-922-7899
Sr. Loan Officer (and VA specialist)
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