A SHORT SALE AND

YOUR VA LOAN

A short-sale home can be an

excellent investment and a way

to maximize profits, especially

for those willing to invest

“sweat equity”.

A short sale differs from a

conventional sale because the

seller is selling the home for

less than he or she owes on it.

This means that all offers must

be approved by the seller and

the seller's lender.

VA loans can be obtained on short-sale properties,

subject to certain criteria, and the home must be

structurally sound.

Cosmetic issues such as a worn or faded carpet do

not affect the structural integrity of the home.

However, a worn or damaged roof, for instance,

may cause the home to not qualify for a VA loan.

Although a VA loan does not guarantee that a home will be

free of defects, the house must be structurally sound in

order to qualify; this protects both the veteran and the VA.

In order to obtain a VA loan, the borrower must have:

DD214

COE, or certificate of eligibility

VA loans are obtained through lenders rather than the VA itself; the VA does not lend money, it simply guarantees that a certain dollar amount will be repaid to the lender.

The amount of the guarantee varies as does the eligibility requirement, depending on the date of service and the value of the desired mortgage.

Since a short sale generally takes longer to close than does a traditional VA sale, a short sale may not be an option if you need to close quickly.

The most expeditious way to start your home purchase is to be pre-qualified.

This can be done online or in person at a bank, credit union, or other lending institution.

You will need the following documents at a minimum:

• DD214

• COE

• Driver's license or state-issued

identification

• Recent pay stubs for one to six

months

You will need the following documents at a minimum:

• Most recent W-2

• Last two years' tax returns if

self-employed

• Social Security card

Since interest rates, points, closing costs, and so forth, vary from lender to lender …

… it is in your best interests to compare rates from several lenders before making your selection.

Your best bet is to contact a

VA loan specialist at the very

beginning of the process,

who will act in your best

interest and find the right

loan for you.

If you need a real estate

agent your loan specialist can

give you recommendations.

He or she will usually have a title company of

preference and the title company typically will take care

of the following:

• Proof of clear title

• Title insurance

• Escrow services

• Closing services

Rarely can a short sale be conducted by a seller, due to stringent government regulations.

However, if you are buying a FSBO, or a for sale by owner, it is vital to use a title company in order to protect your interests and your money.

Jimmy Vercellino, is an Arizona VA

Loan Specialist who helps

veterans obtain the loans they are

entitled to.

He served in the United States

Marine Corps, and now devotes

himself to the Veteran home buyer in

the Phoenix area, fulfilling a passion

of his while at the same time helping

others achieve home ownership.

Be a proud homeowner today.

For more details call 480-351-5904 or visit

the site http://www.valoansforvets.com

VA Loans for Vets 7702 E. Doubletree Ranch Road, Suite 220

Scottsdale, AZ 85258

Phone: (480) 351-5904

Email: jimmyv@fcbmtg.com