When Can I Get a VA Loan After a Recent Bankruptcy, Foreclosure, or Short Sale?

​​If you are an eligible Veteran, and have experienced a recent bankruptcy, foreclosure, short sale or deed-in-lieu of foreclosure, you can obtain a new VA home loan after a period of time has elapsed. 

These are the waiting periods before you can obtain a new VA Home Loan. 

Waiting periods are based on TWO factors:

1) the type of prior housing event you experienced, and
2) the type of loan program for the new home loan (VA homes, in this case) 

Did the VA incur a financial loss? 

There is one potential exception to these waiting periods.  If the Veterans Administration incurred a financial loss as a result of the Veteran’s bankruptcy, foreclosure, short sale or deed-in-lieu of foreclosure, the VA may temporarily suspend a Veteran’s home loan benefit eligibility until the Veteran has repaid the VA for its financial loss. Once the Veteran has made satisfactory restitution to the VA, the VA may restore the Veteran’s eligibility. This policy takes precedence over the dates in the chart. 

The bottom line is that the Veteran must both: 

• A) satisfy the appropriate waiting period, and 
• B) repay the VA for any past financial losses, if any losses occurred.  

How do I know if the VA incurred a financial loss? 

Sometimes the best clue as to whether the VA incurred a loss, is to review the Veteran’s Certificate of Eligibility.  If the Entitlement amount on a freshly-prepared Certificate of Eligibility shows an amount of $0 and the waiting period has already elapsed, then the Veteran should contact the VA home loan division to research the claim and supply the Veteran with a dollar amount that would be sufficient to restore the Veteran’s eligibility. 

We are a Florida-based direct VA lender and we are a Veteran-led business. If you are looking for VA financing anywhere in the state of Florida and have questions, we would love to discuss your scenario. Or you can send us a message HERE.

If you have experienced a recent Bankruptcy, Foreclosure, or Short Sale and would like to compare the waiting periods to other loan types such as Conventional or FHA, you can check out our WAITING PERIOD ELIGIBILITY CHART HERE.

Yours in successful homeownership,

Derek Bissen
Loan Originator
NMLS#365627
Unconventional Lending Program Director