The VA home loan program: It’s flexible

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 to 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. But selling your home via a short sale can make purchasing another home right away difficult.

The VA home loan program has flexible underwriting guidelines that 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 make a zero percent downpayment. There’s also no private mortgage insurance, which borrowers who make less than a 20 percent downpayment typically must pay. That nifty feature, along with a low mortgage rate, helps keep the monthly payment on VA loans as low as possible.

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