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How long must a borrower must wait after a short sale before being eligible for a new VA mortgage loan? VA regulations stipulate a two year waiting period, but some situations are unique.


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Bruce Reichstein is an Expert on (VA) Military/Veteran Home Loan Guidelines for over 26 years — www.VALoans.com. He is an experienced VA Loan Mortgage Banker who is passionate about assisting US Military Veterans utilize their Veteran Eligibility to purchase a home.

Applying for a VA Loan After a Short Sale

A frequently asked question about VA home loans has to do with how long a borrower must wait after a short sale before the person is eligible to apply for a new VA mortgage loan. The standard answer? VA regulations stipulate a two year waiting period following the short sale before a borrower can be considered for a new VA mortgage.

But some situations are unique-what happens when a borrower is involved in a short sale two years prior to applying for the new VA loan, but any remaining amount on the loan still owed isn't paid off until much later?

In these cases, much depends on the lender. Some lenders would deny the loan in this circumstance. But other lenders--including VALoans.com--do work with borrowers in circumstances similar to this, allowing a new VA loan application if certain conditions are met.

To be approved for the new VA home loan, the borrower would have to maintain good credit after the short sale, and the date of the short sale must be documented on a credit report or other paperwork.

In cases where the lender approves of the new loan, the VA loan applicant who has good credit, has waited two years since the official date of the short sale, and provides the required supporting evidence could be approved for a new VA home loan.

It's important to point out that not all lenders permit these types of transactions, and some require the borrower to wait longer than the VA two year minimum. But lenders who do agree can help a qualified borrower ready to become a homeowner again--even after a short sale.