The VA home loan program has many benefits. One you may not know about: There’s no specific waiting period after a short sale to apply for a VA loan. Other home loan programs have waiting periods of three or more years after a short sale before you can apply for another mortgage.
A short sale is when you sell your home for less than the balance remaining on your mortgage. Short sales can provide a way for families with real estate issues to get a fresh start and avoid foreclosure. However, selling your home via a short sale can make purchasing another home tricky.
The VA home loan program can be helpful for families who have had past financial difficulties. It’s one of the ways that the loan program, designed for service members, veterans, and eligible surviving spouses, makes home buying easier. The VA home loan program also allows many borrowers to purchase a home without a down payment. There’s also no private mortgage insurance, which borrowers on conventional loans who make less than a 20 percent down payment will typically pay. That nifty feature, along with a low mortgage rate, helps keep the monthly payment on VA loans as low as possible.