Short sales are becoming more and more common every day and they offer excellent opportunities for VA loan home buyers to pick up a great bargain property. A short sale is when a seller needs to sell, but has a current loan on the property greater than what they can sell the property for. In order to sell in this case, that seller’s lender has to agree to take less than full balance for the loan currently on the property.
Recently the U.S. Treasury has announced plans to encourage loan services, loan note holders and sellers to do short sales. The Treasury will be offering payments to services, note holders and a certain amount in relocation funds to homeowners in the hopes that this will encourage them to complete more short sales. This is good news for VA loan home buyers, because often short sales offer incredible deals on properties that are in much better shape than bank foreclosures. Additionally, sellers of short sales are more willing to take a purchase offer from a VA buyer than bank foreclosures. Bank foreclosures often pass on VA purchase offers in favor of all cash or 20% down offers.
You may need some patience when you make offers on homes that are short sales, but it can be worth the wait. Many of my VA loan clients have successfully purchase wonderful properties all over California and other states as well that were short sales. Hopefully the new guidance from the U.S. Treasury will expedite short sales and allow VA home loan buyers to close on your new house faster.
Here are some highlights of VA loan benefits:
- 100% financing zero down
- Sellers can pay all your closing costs
- With a VA loan credit does not have to be perfect, you may be able to get a VA loan even if your think you have bad credit
- VA loan interest rates are still extremely low
- VA loan home buyers who have VA disability pay get the VA funding fee waived!
- VA does NOT have monthly mortgage insurance (unlike FHA and conventional loans with less than 20% down)
- Flexible qualifying guidelines (conventional loans now require a much lower debt-to-income ratio than VA loans
Give me a call (858-922-7899) or email (homeloan8@gmail.com) if you have any questions at all about getting ready to qualify for VA loan.
Warmest Regards,
Rob Chomentowski
Sr. Loan Officer (and VA specialist)
858-922-7899
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