What is a VA refer eligible?, why did we get this?, And now what do we do?

6 Replies

Story starts; Husband in service used VA loan Certificate in Virginia (bought and sold), Retired after 20 years. Used VA loan a 2nd time in MT; did a Deed-in-lieu-of in 2012. Due to medical expenses. House in foreclosure in 2013, and sold 3/2013.

Have been renting, good referrals,  no credit cards, score 700, full time US Post Office 1 year, 

Went for a VA and got a VA eligible refer.... What is this? Why did we get it? And what do we do now?

I am also a newbie on the REI BP.com website.

Thank you

Rita C

if the foreclosed property sold for less than needed to pay off the mortgage, you may not be able to use your VA eligibility again until VA is made whole.

@Rita Crews  Please thank your husband for his service.

Let me recap what you are saying:
* Your husband used his VA loan benefit for a primary residence. The property was sold, so the VA loan benefit was freed up.
* Your husband used his VA loan benefit 2nd time for a primary residence. The house was returned to the VA (Deed-in-lieu) in 2012. Is this the same property that had a foreclosure on 2013? This does not make sense.

At this point you are trying to buy a new primary residence with your husband's VA loan benefit. Did you contact a mortgage banker or the VA to find out eligibility? What do you mean by VA eligible refer... can you please elaborate? Not sure what you are trying to say.

VA has a 2 yr wait period for DIL and Foreclosure. So you are eligible if the dates are correct. Though it does come down to underwriting discretion.

I am a VA loan specialist and would be happy to help with your loan needs. Please PM me if you would like to discuss.

Upen Patel
Mortgage Banker
Originally posted by @Mark Guy :

if the foreclosed property sold for less than needed to pay off the mortgage, you may not be able to use your VA eligibility again until VA is made whole.

 That is not entirely true. What will happen is that a portion of the benefit will be tied up with the foreclosed property. If loan benefit is left over, then that can be used for a new loan.

Upen Patel

Mortgage Banker

refer eligible just means the loan is borderline. It is eligible for delivery but needs to be manually underwritten. if the borrower had a foreclosure there are seasoning requirements on the timing (waiting period). 2 and 3 years for 80 and 90 LTV respectively.