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  • Wendy Rulnick March 31, 2013 at 3:12am

    Kristy, You can use the REMAINDER of your entitlement towards buying another home with the VA mortgage program. I've had many sellers who did VA Compromise Sales do the same. You do have to call the VA to find out what your remaining entitlement is. In fact, I've had sellers immediately buy another home with the program, in a relocation situation.  Here are some of the VA's examples of calculating entitlement. Don't even rely on a mortgage broker to do it. It's complex: http://www.benefits.va.gov/homeloans/documents/docs/guaranty_calcul...

  • Kevin - Greenville, SC March 22, 2013 at 5:55am

    The specific wording on the VA official site includes the following;

    “…although the veteran’s debt was waived by VA, the Government still suffered a loss on the loan. The law does not permit the used portion of the veteran’s eligibility to be restored until the loss has been repaid in full.”

    If a VA loan applicant is notified that a debt to the government exists, or was aware of the debt prior to applying for the loan, it’s a very good idea to contact the VA directly to work out the details of repayment before trying to apply for a new VA mortgage.

    Another important fact to remember–you may still be able to take advantage of any unused VA loan eligibility. If a borrower did not use the full entitlement on the previous VA mortgage, any remaining entitlement may be allowed.

    A borrower’s debt to the government for a compromise claim could be factored into the debt-to-income ratio unless the lender feels the compromise claim debt is too large compared to other financial factors. Such debt might result in the need for a down payment, or a larger down payment than usual–requirements will differ from lender to lender.

     

    http://www.benefits.va.gov/homeloans/faqelig.asp

    • Kevin - Greenville, SC > Kevin - Greenville, SC March 22, 2013 at 5:59am

      Q: My prior loan was foreclosed on, or I gave a deed in lieu of foreclosure, or the VA paid a compromise (partial) claim. Although I was released from liability on the loan and/or the debt was waived, I am told that I cannot have my used eligibility restored. Why?

      A: In either case, although the veteran’s debt was waived by VA, the Government still suffered a loss on the loan. The law does not permit the used portion of the veteran’s eligibility to be restored until the loss has been repaid in full.

      http://www.vba.va.gov/ro/cleveland/FAQs_veterans.htm

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