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 Vets7702 E. Doubletree Ranch Road, Suite 220Scottsdale, AZ 85258Phone: (480) 351-5904Email: jimmyv@fcbmtg.com