"Can I Buy A Home Now With My VA Loan After A Foreclosure On My VA Loan?"
Yes... No... Maybe...
You owned a home in the past that you bought with your Veterans Administration guaranteed home loan.
You let the home go to the foreclosure auction block for whatever reasons... job loss... base closure... disability...
You want to know if you can buy a home with your VA loan now that you are back on your feet financially.
Yes... No... Maybe...
Yes, you can if you did not use all of your elegibility to buy the home you let go to foreclosure. If you have loan guarantee elegibility funds available, your friendly local loan officer can help you calculate your VA loan limit.
So how do you find out how much elegibility you have right now?
My friend and local lender, Markita Aldridge-Woods sent me an example of how the formula was applied to an actual buyer who was in her office getting loan approval today.
Here is what Markita calculated for her client:
"Mr. Veteran's house cost the Department of Veterans Affairs to cover a $19,000 loss when the old house sold in 1989.
The full entitlement is $36,000 so his remaining entitlement is $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 to get a calculation of your entitlement directly from Markita)
Thank you Markita for your contribution, and I hope some of my Gentle Readers will use this post to begin their home purchase process with Markita and Erick as your trusted advisers.
703-590-2252 or contact me now by email Click Here
Erick Blackwelder or Peggy James of Erick and Company - Exit 1st Choice Realty, Woodbridge VA. Realtors®, call 703-590-2252 begin_of_the_skype_highlighting 703-590-2252 end_of_the_skype_highlighting list your property for sale or to purchase a property in Lake Ridge, Westridge, Old Bridge Estates, River Falls, Middle County, Cannon Bluff, Meadowbrook Woods, Blooms Crossing, Manassas Park, Beaver Creek, Hunter's Ridge, Brittany, Manassas, Montclair, Dumfries, Occoquan, Dale City, Nokesville, or anywhere in Prince William County.Equal Housing Opportunity
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