I Foreclosed on a Home with My VA Loan...Can I Purchase Another Home Using My VA Benefits?

By
Mortgage and Lending with Fairway Independent Mortgage NMLS #196099
https://activerain.com/droplet/4BFg

Caller: In 1998, I was uh,careless and walked away from a property I could not sell. I purchased the home with my no money down VA loan. Can I purchase another home using my veteran benefits? This seems like a great time to buy another house....

Answer: Yes, BUT it depends on the amount of entitlement you have left, if any.

To determine the VA Home Loan Benefit we instructed Mr. Veteran to submit this form to the Regional Veteran Affairs Office requesting his Certificate of Eligibility. This certificate allowed us to determine any entitlement due to the veteran.

 

 



Upon return Mr. Veteran had a loss of $19,000 suffered by Veteran Affairs. The full entitlement is $36,000 so his remaining entitlement was $17,000. Since we are in a high cost area (the maximum VA loan limit in the Washington DC area is $768,750) we are able to add additional entitlement to the amount and calculate the maximum allowable home sales price.

Here is the formula:

 $768,750X 25% = $192,187 Maximum Guaranty

$192,187- $19,000= $173,187 Entitlement Available

$173,187 X 4 = $692,748 Maximum Loan Amount for no money down purchase

(I don't recommend trying this at home, just pick up the phone and call 703-497-3936)


Mr. Veteran had enough remaining entitlement to purchase another home in Port Potomac, a new condo subdivision in Woodbridge, VA,with no money down and seller paid closing costs.

Of course Mr. Veteran had to meet our other lender qualifications:

  • Qualifying income and debt ratios
  • 620 plus credit score
  • Three Years since time of foreclosure
  • Satisfactory Rental History

 

 

If this happened to you there is hope of purchasing another home with a no money down VA Home Loan... Call your Woodbridge, VA FHA/VA Lender at 703-497- 3936.
 
 

Visit www.mymilitarymortgage.com for more VA Loan tips that other lenders don't want you to know.
 
 
 
 
 
 
 
 
 
                                                                                                         
 
Summary this does not apply to all foreclosures and Veteran Loans. Every case is different. The Veteran Loan Limits have changed since the original date of this post.
 
 
 
 
 
 
 
 
 
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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Paul Francis 06/25/2010 08:44 AM
Topic:
Lending / Financial
Location:
Virginia Prince William County Woodbridge
Groups:
Military Relocations
Tags:
no money down
va loans
for
va home loan
woodbridge va foreclosures
woodbridge lenders
home after foreclosure

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Rainmaker
158,470
Deborah "Dee Dee" Garvin
C2 Financial - San Diego, CA
C2 Financial

Mariita,  And a nice reminder that things will improve and there can be new opportunities for people who have lost their homes.

Jun 25, 2010 03:35 AM #1
Ambassador
2,736,118
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

The VA is far more forgiving of past foreclosures than other financing types. 

Good information for buyers. 

Jun 25, 2010 03:36 AM #2
Rainmaker
117,777
Anne Clark
Metro Referrals - Gainesville, VA

Great news that the VA isn't holding his former foreclosure against him.  Better news that he didn't completely let his credit go when it happened.

Jun 25, 2010 03:58 AM #3
Rainer
41,337
Erik Elsea
Erik Elsea-Jones & Co. Realty - Fort Myers, FL

Killer post! I would have never guessed this was possible. Thank you for sharing. I love this community!

Jun 25, 2010 04:55 AM #4
Rainmaker
527,231
Karen Feltman
Cedar Rapids/Iowa City, IA KW Legacy Group - Cedar Rapids, IA
Relocation Specialist in Cedar Rapids, Iowa

This is great information to pass on to other veterans in similar situations! Thank you so much for sharing your information with the AR community!

Keep smiling,

Karen

Jun 25, 2010 05:42 AM #5
Rainmaker
144,599
Markita Woods NMLS#196099
Fairway Independent Mortgage - Woodbridge, VA
Queen of Mortgages - FHA, VA, Conventional, USDA

@Debbie There is hope

@Lenn This is exactly why I love VA loans

@Anne, so true

@Eric thanks

@Karen please do pass it along. The AR Community is the best!

Jun 25, 2010 05:49 AM #6
Rainmaker
155,288
Ted Tyndall
Davidson Realty Inc. - Saint Augustine, FL
I will help You find the Home YOU want to Buy

Markita, good information to know. I have not run across that situation before.

Jun 25, 2010 06:51 AM #7
Rainer
362,155
Stephen P. Panczak, Sr, MBA
Palm Beach, FL
Realtor, Property Mgm't, LCAM

Markita - thanks for the information. I work with veterans and its good to have ample information that's relative to their situation....great job. I'll leave the formulas to you!

Jun 25, 2010 07:43 AM #8
Rainmaker
135,600
Paul Francis
Francis Group Real Estate - Las Vegas, NV
Las Vegas Real Estate Agent - Summerlin Homes

Markita -- Fantastic Post. Short, Sweet and to the point. Loved it!

Jun 25, 2010 08:43 AM #9
Rainer
119,944
Katrina Cole
The Jonathan Arnold Team of Inlanta Mortgage - East Grand Rapids, MI
Inlanta Mortgage, Business Development Manager

Thank you for a great post.

Jun 25, 2010 10:11 AM #10
Ambassador
1,552,831
Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Markita  I love your post - simple and atraightforward - easy for vets to understand

Jun 25, 2010 11:44 AM #11
Rainmaker
527,274
Peggy James
EXIT Realty Associates - Woodbridge, VA
Woodbridge Virginia Area Real Estate Specialist

Hi Markia.  Chances are, this information will be great news for any relocating veterans who thought they could never afford a  home in the Northern Virginia or Prince William county area. Prices are low, rates are low and it is a great time to buy. Thanks for sharing this valuable information to Realtors and Military Veterans who just assume they cannot buy.

Jun 25, 2010 11:37 PM #12
Rainmaker
806,028
Lanre-"THE REAL ESTATE FARMER" Folayan
Keller Williams Select Realtors-Buy a home in Washington DC. Sell a home in Washington DC - Bowie, MD
I don't make promises.I deliver results.SOLD HOMES

Markita this is great information for Veterans who didn't know about this. I was led to this blog from your Facebook page. Thanks for sharing. Have a great weekend. Great post.

Jun 26, 2010 11:41 AM #13
Rainer
59,176
Chris Wechner
CW Health Inc - Waterford, MI

Markita Aldridge-Woods: "Your Woodbridge FHA/VA Lender" (WestStar Mortgage): I like the way you step through those calculations, Markita.  I like the way you ended your post even better...Don't try this at home, just call...

 

This will become a bigger deal whenever veterans return home from the war.  You have very keen insight to post this.

Jun 28, 2010 06:05 PM #14
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Rainmaker
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Markita Woods NMLS#196099

Queen of Mortgages - FHA, VA, Conventional, USDA
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