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Can you get disqualified from a va loan for life after a short sale?

by abrahamsabbah889 from Chino, California. May 5th 2014 Reply


Mike Silkworth (msilkw_195_870)
#29 ranked lender in Michigan - 531 contributions

If you short sale was with a VA loan, then you will have used up some or possible all of your VA benefit. If you short sale was on a non VA loan, then you need to wait 2 years before re-applying for a VA loan. This 2 year waiting period can be waived if you had no late payments on any mortgages and consumer debts within the 12 month period preceding the short sale AND you did not take advantage of a declining market situation when short selling your home. The best way to find out is to obtain a Certificate of Eligibility from the VA on the VA website.

May 5th 2014
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Sean Young (SeanYoung)
#1 ranked lender in Colorado - 1,112 contributions

The answer is no. You will have a waiting period like Mike mentioned in this thread and if you did a prior short sale on a VA loan and wanted to use VA financing for your new purchase, you'd have to restore your VA eligibility. This would likely involve paying the VA back for the deficiency they had to cover on the short sale.

May 5th 2014
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