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

​About the Author: 

Derek Bissen is a licensed Mortgage Loan Originator with over 25 years of experience in the industry. Derek is a self-employed lending expert who is known for his ability to work with borrowers who have substantial wealth and non-traditional lending needs. He is a creative loan structurer and specializes in portfolio lending, asset-based lending, bank statement lending, as well as traditional loans such as Conventional, FHA, VA, and first-time homebuyers.

Derek's expertise in the mortgage industry is unparalleled. He is a trusted advisor to his clients, providing them with customized loan solutions that meet their unique financial goals and needs. His vast experience and knowledge make him a valuable asset to anyone looking to purchase a home or refinance their existing mortgage.

As a highly-experienced loan originator and author, Derek is committed to sharing his knowledge with others. He regularly provides valuable insights and advice to readers looking to navigate the complex world of mortgage lending. His articles are informative, engaging, and backed by years of hands-on experience.

With his wealth of knowledge and dedication to his clients, he is the go-to source for all your mortgage lending needs. If you're looking for a reliable and trustworthy mortgage expert, contact Derek today to learn more about how he can help you achieve your financial goals.