Updated over 15 years ago on . Most recent reply
VA loan as 1st in 80/20, will short sale affect sellers VA benefits?
I have an 80/20 short sale I am working with a retired sailor. The 80 is a VA loan but the 20 is regular. If I short off the 20 will this affect their ability to use their VA benefits for another VA loan later? For that matter if you short a regular VA loan, does this affect their ability to get another?
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Hi Samuel, yes a default on a VA will effect the VA entitlement until it is fully paid. This will be the amount elgible for a loan guarntee, perhaps a lower loan amount could still be made, but the SS will be a default. Best to call the VA.
However, the VA, as you probably know, provides a gurantee not the loan and qualifying for the loan is another matter, even if the guarantee is there, the lender may not make it. Bill