Good news for Las Vegas renters with VA eligibility, you can qualify for a new 100% VA loan if you are at least two years out of a foreclosure.
Clark County was one of the first places hit when the financial crisis started sweeping through this nation in early 2007.
And since Nevada leads the other states with the highest level of unemployment, according to a Feb. 2011 report by the United States Department of Labor, it’s easy to understand why RealtyTrac.com is reporting that 1 our of 106 housing units received a foreclosure filing in February 2011.
Actually, if you drill down to some zip codes, the ratios get as high as 1 out of 5 housing units, with a total of 9,553 filings in Feb. and 21,816 foreclosure filings YTD.
Anyway, for those buyers and real estate professionals that are past the point of trying to explain who’s at fault for the most recent housing bubble, this particular VA Loan foreclosure guideline may offer a sense of hope for possible economic recovery.
Basically, current renters who lost a property to foreclosure as recent as April 2009 (exactly two years ago), can qualify for 100% financing on a new Las Vegas home if they are VA eligible.
Yes, I know exactly what you’re thinking right now –
I bought a home in 2005 for $650,000, which we lost in 2009 after our 3 yr ARM adjusted in 2008….. Now I can go back and purchase that same property for around $180,000 or less. Awesome!
Regardless of whether you believe prices have bottomed out or can slide another 10-25% as anticipated, the fear of rising interest rates over the next year should be your motivating factor for making a decision to buy sooner vs later.
Check out this mortgage calculator to see how big of a monthly difference 4.5% and 5.35% makes on a $200,000 loan amount, and you’ll understand why I used the word “fear” when describing the potential for higher mortgage rates.
How Do VA Eligible Borrowers Qualify After Foreclosure?
Fortunately, the VA qualifying guidelines do allow for veterans and military personnel to qualify for a VA loan after a foreclosure, but with some restrictions.
For starters, veterans are not eligible for a VA loan for 2 full years after their foreclosure.
After this time veterans are allowed to apply for a loan again, but will face increased scrutiny and will likely have to respond to more questions during the application process…. obviously.
Don’t worry though, there is a lot of paperwork required to get just about anyone financed these days. Perfect credit history borrowers go through almost as much pain to get a home loan.
Simply waiting out the recovery period does not guarantee you loan approval since there are additional qualifying requirements that vary by lender.
And, each lender will have a different set up guidelines to consider depending on whether your previous mortgage was a VA Loan, FHA or Conventional.
However, for veterans that DID have a VA loan tied to a foreclosure, full entitlement will have to be restored.
To restore full entitlement after a VA loan foreclosure, the borrower has to completely pay back the VA the loss of the previously guaranteed amount.
It is possible to use partial-entitlement to get a VA loan, but without full entitlement a down payment will probably be required. Borrowers with past foreclosures will also be asked to provide details regarding the circumstances. If you can show that the cause of your financial trouble and foreclosure were largely out of your control, you may be able to increase your chances for approval.
Some examples of extenuating circumstances include:
- Unforeseen medical bills.
- Job loss.
- Certain lawsuits.
Examples of circumstances which probably won’t be considered to be extenuating are:
- Bankruptcy because of an entrepreneurial business venture.
- Getting divorced.
- Certain lawsuits.
Regardless of the scenario, there is no guarantee of approval or denial as decisions are made on a case-by-case basis.
Lastly, even though the VA does not disqualify veterans from VA loans after a foreclosure, it can definitely make the application process take longer than it normally would.
So, here’s the deal –
We already know that qualifying for and closing on a mortgage in this current lending environment can be painful. Congress and the Fed are passing laws that hurt consumers, slow the process and scare banks from wanting to offer anyone a common sense loan.
It’s true, nothing is very easy these days.
However, if you have a good mortgage professional that understands how to get these deals done, and is willing to work hard for you, then it’s worth a shot if you’re considering being a home owner again in the next 10 years.
I’ve included a graph below that shows the avg price of homes in Las Vegas, as well as a list of all the most recent homes for sale on the MLS that are between $180,000 and $250,000.
If you’d like to personalize your own MLS property search, please feel free to CLICK HERE – SEARCH MLS LISTINGS, or contact our office for more info.
We also work with trusted Las Vegas VA Mortgage professionals who are approved for these VA Loans Two Years Out Of Foreclosure Guidelines.
$250,000 : 3701 EL CORTEZ Avenue, Las Vegas4 beds, 2 full baths
$235,000 : 6528 STARCREST Drive, Las Vegas2 beds, 1 full, 1 three-quarter baths
$199,900 : 5628 CACTUS THORN Avenue, Las Vegas3 beds, 1 full, 1 three-quarter, 1 half baths
$189,500 : 10335 MIDSEASON MIST Street, Las Vegas2 beds, 1 full, 1 three-quarter, 1 half baths
$249,000 : 3965 LANDSDOWN Place, Las Vegas3 beds, 2 full baths
$249,900 : 8312 SHORE BREEZE Drive, Las Vegas3 beds, 2 full, 1 half baths
$180,000 : 8777 West MAULE Avenue, Unit 2164, Las Vegas3 beds, 3 full baths
$245,000 : 7021 MANDY SCARLET Court, Las Vegas3 beds, 2 full baths
$225,000 : 1024 DANCING VINES Avenue, Las Vegas2 beds, 2 full, 1 half baths
$200,000 : 1605 ROYAL PALM Drive, Las Vegas2 beds, 1 full, 1 three-quarter baths
$198,000 : 5184 MERLE Street, Las Vegas3 beds, 1 full, 1 three-quarter baths
$239,900 : 5505 GIPSY Avenue, Las Vegas4 beds, 1 full, 1 three-quarter baths
$189,999 : 249 LOGANSBERRY Lane, Las Vegas2 beds, 2 full baths
$192,500 : 3929 APPLECREST Street, Las Vegas2 beds, 2 full baths
$225,000 : 8621 CATALONIA Drive, Las Vegas2 beds, 2 full baths
$210,000 : 10663 PUEBLO SPRINGS Street, Las Vegas3 beds, 2 full, 1 half baths
$214,900 : 8030 SKYWALL Court, Las Vegas4 beds, 1 full, 1 three-quarter baths
$250,000 : 9815 CANTERBURY CREEK Street, Las Vegas3 beds, 2 full, 1 half baths
$180,000 : 4945 CARMICHAEL Avenue, Las Vegas4 beds, 1 full, 1 three-quarter, 1 half baths
$249,900 : 2624 PALMRIDGE Drive, Las Vegas2 beds, 2 full baths
$209,900 : 2017 RUTH Drive, Las Vegas3 beds, 1 full, 1 three-quarter baths
$238,000 : 6528 FRESH MEADOWS Lane, Las Vegas3 beds, 2 full, 1 half baths
$225,000 : 1496 LAWMAN Court, Las Vegas4 beds, 2 full, 1 half baths
$209,868 : 4309 SAN JOAQUIN Avenue, Las Vegas3 beds, 2 full baths
$182,900 : 3404 HELMSMAN Drive, Las Vegas3 beds, 2 full baths
See all Properties In The city of Las Vegas.
(all data current as of 5/24/2017)
Listing information deemed reliable but not guaranteed. Read full disclaimer.