Re: Evaluating Convention
al vs. FHA (VA & USDA)
04-14-2011 09:35 PM
What are my chances of getting another VA home loan considering the following:
1. Got pcs due to job relocation in 8/09
2. Had to do short sale on Michigan home which sold in 3/10
3. Current FICO score of 637 w no credit issues since the short sale...always pay on time
4. Gov employee been here (Tx) almost 2 years now
So, would I qualify for extenuating circumstances due to job relocation? Or am I simply going to have to wait until March next year...2 years after the short sale? Thinking of trying w Navy FCU.
Was the home in Michgan with a VA mortgage? If so, you will have to check what available entitlement you have, if any, by requesting your certificate of eligibility or by contacting any lender who offers VA loans and they can obtain it instantaneously online. If it was with a FHA or USDA mortgage, then there may be a CAIVRS claim for the portion that FHA or USDA had to cover. If it was conventional then there likely isn't anything additional to be concerned about regarding qualifying qualifying for a new government backed mortgage.
So you said you got PCS orders, is that when you were in the military? And you are not in the military now, but another type of government employee?
VA doesn't have any guidelines pertaining to short sales, so if the payments were on time but it just was short sold at the end then technically you could purchase again right away. However if you went late on the payments then most lenders will view it the same as a foreclosure and then 2 years is required like you know - VA only cares if you go 120 days late but lenders care if you go late by 30 days or more.
As far as PCS orders as an extenuating circumstance, when it comes to the reason of job relocation, that would be as good as evidence as any. If there was clear evidence that the PCS orders were the sole cause of the short sale then I think you'd have a real good case of getting approved for a new VA loan at the 1 year mark (assuming the short sale wasn't on a government loan).