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: [email protected]