VA Home Loan, Short Sale, Foreclosure, and Bankruptcy Waiting Periods

There are a lot of questions that Veteran home buyers have as it relates to purchasing a home with the VA Home Loan benefit. This could not be more true regarding the waiting periods after a short sale, foreclosure and bankruptcy. The reality is that many Veterans were affected by the recent recession leaving millions with no choice other than to short sale, foreclose, or file for bankruptcy . Fast forward a couple of years and things finally seem to be getting better for our nation. Veterans who may have had a short sale, foreclosure or bankruptcy in the past find themselves considering purchasing a home again, but are unsure of the waiting periods required. Many people are quick to cite 3 , 5, and I have even heard as many as 7 years after one of these events. So which is it? Let’s take a look at what VA Home Loan guidelines say about this.


Short Sale- The VA Home Loan does not have a specific policy on Short Sales. Lenders are to apply prudent underwriting practices when approving these loans. If the Veteran has had a short sale less than 2 years old and your are able to prove why it happened, and why it won’t happen again, you may be eligible before the 2 year typical waiting period for foreclosures and bankruptcy.

Foreclosure- Typically a 2 year waiting period on a VA Home Loan. However, in some circumstances if you can prove that the reason behind the foreclosure was beyond the Veterans control you may be able to buy sooner. Keep in mind that the Veteran must have reestablished their credit after the event by demonstrating an on time payment history.

Bankruptcy- Same rules apply as foreclosure on a VA Home loan.

Chapter 13 Bankruptcy- Must document 1 year of on time payment history to the Trustee. You must also provide a letter from the Trustee stating that obtaining a new VA Home Loan will not prohibit the Veteran from continuing to make the current monthly obligation required to be paid to the Trustee.

So there you have it Veterans. If you are in the market to purchase a home and have had an event in the past that you think will hold you back from buying, think again. You may be able to get out there and purchase today. Call me today at 602-908-5849

Thank you and may God bless you for your service to our great country!

Semper Fidelis,
Jimmy Vercellino

More than 1 VA Home Loan at a Time? Yes, it’s True!

Many veterans have no idea they are actually able to use more than one VA home loan at a time. Yes, it’s true! A Veteran may actually have more than one home loan at a time. How can this be, you ask? It’s called VA Bonus Entitlement. Simply stated, as long as you have sufficient VA Entitlement for the VA home loan, you can have more than one at a time. There are a lot of Veterans out there today that would love to be able to purchase a new home – in a more desirable location, better school district, with more square footage – who have no idea that they really can. Let’s take a look at an example below.

A Veteran buys a home with his or her VA home loan in 2006 for $150,000 and would love to take advantage of the market that we are in today. Our Veteran can actually rent out their current home and use that rental income to offset that mortgage payment up to 75% . Most mortgage products will require you to have 25% equity in the home or you must have rented out that property for two years to do this, but not with a VA Home Looan. Our Veteran now has the ability to go out and shop for a new home with their VA Home Loan from $144,000 up to $267,000 with NO down payment! As a Veteran, you must have sufficient VA Entitlement available and the home being purchased must be owner-occupied. [This summary is based on a $350,000 loan amount, loan term of 360 months and an interest rate of 4.5%.]

Are you interested in seeing if the VA Bonus Entitlement is something that you are eligible for? Give me a call – I speak your language and I know what it means to serve.

Semper Fidelis,
Jimmy Vercellino

Top 5 VA Home Loan Myth’s

For as long as I have been serving Veterans with their VA Home Loan Benefits I have heard a number of misconceptions as it relates to our VA Home Loan Benefits. These misconceptions, or shall we say myths, can have a negative impact on us for obvious reasons. For example a Veteran may opt to go with a more expensive mortgage product like a FHA Home Loan which can end up being significantly more expensive over time. So back to the myths. What are they? Let’s take a look at the top 5 VA loan myths that heard throughout my career as a Mortgage Banker Specializing in VA Home Loans.

VA MYTH # 1. VA Home Loans take too long to close.

Not true. Many lenders quote 45-60 days to close a VA Home Loan. However, just because it may take that particular lending institution 45-60 days to close does not mean that is how long it takes to close a VA Home Loan. The VA Home Loans that we close at PrimeLending typically take no more than 30 days.

VA MYTH # 2. VA Appraisal Process is much more difficult.

Again, not true. The reality is I would not be in business if this were the case as90% of the Home Loans that I originate are VA. VA Home Loans have multiple steps in place to protect the Veteran from overpaying for the home.

VA MYTH # 3. VA Home Loan qualifying is much more difficult.

The VA Home Loan is the most unique home loan that exist and one of the things that I love about it is that VA has applied common sense lending practices to serve Veterans. However, it’s entirely untrue to say that it’s more difficult. The truth is that in some ways they make it much easier for a Veteran to obtain financing take for example the no down payment option.

VA MYTH # 4. You can only have 1 VA Home Loan at a time.

False. A Veteran can actually have more than 1 VA Home Loan at a time as long as they have sufficient entitlement. This allows Veterans to seek financing for another home in a more desirable location while maintaining the property they are vacating that currently has a VA Home Loan on it.

VA MYTH # 5. A Veteran can only use their VA Home Loan once.

I have heard this from a lot of Veterans that served during the Korean and Vietnam conflicts. However, it’s not true. A Veteran may use his VA Home Loan as many times as they would like as long as they have sufficient entitlement.

So there you have it, the top 5 VA Home Loan myths. My hope is that you learned something about your VA Home Loan benefit after reading this. Of course, if you have any questions you may contact me me directly at my office at 480-538-4980 or email me at

Thank you and may God Bless you for your service to our great country.

Semper Fidelis,
Jimmy Vercellino

Arizona VA Home Loans

Many Veterans when searching for an Arizona VA Home Loan rarely stop and ask if the company in which they are seeking financing specializes in Arizona VA Home Loans. This is not a question that typically comes to mind when applying for a loan, however I can assure you it’s one that it should. The reality is that there are a lot of lending institutions that may be able to originate a VA Home Loan, but it does not automatically mean that they know exactly what they are doing. I see this time and time again when Veterans come to me frustrated, and feeling defeated because the lender in which they started with seems rather lost and unfamiliar with the process creating feelings of uneasiness and anxiety.

When explaining why Veterans should use a Mortgage Banker that specializes in Arizona VA Home Loans, I often times use this analogy. The United States Marine Corps is famous for every Marine being a basic rifleman. However, within the Marine Corps there are certain specialities that exist. For example you have Infantry Rifleman who trains daily for the front lines of combat, and on the other hand, you may have a Marine who’s job is to work on the electronics of an aircraft. I think it’s safe to say that you would not want the Infantry Marine working on the aircraft, and the Aircraft Marine shooting highly technical weaponry. Why is this? Each Marine has been trained in their own area of expertise and may not be 100% familiar with how each others job works. Keep in mind they are both Marines yet have 2 totally different jobs. That’s kind of like how the Mortgage industry is. Just because somebody is a Mortgage Banker or Broker does not automatically make that person qualified to originate your VA Home Loan.


You deserve somebody who specializes in Arizona VA Home Loans. Somebody who understands your sacrifice, somebody who speaks your language and knows what it means to serve. Arizona VA Home Loans are unique to any other type of home financing loan that exist today, and you need to be working with somebody that originates VA Home Loans exclusively. So if you are in the market to purchase a home, I would be honored to serve you! Helping Veterans is my passion and purpose! So please call me, I speak your language and I know what it means to serve 480-538-4980.

The VA Home Loan Appraisal Process

Ever Wondered How the VA Home Loan Appraisal Process Really Works?

The #1 gripe that I hear about the VA Home Loan process is the VA Appraisal.

People seem to say things like the VA Appraisers are much more conservative when it comes to appraising the property that the Veteran is seeking financing for.

Please allow me to say the following…misunderstandings like these actually hurt us as Veterans because sellers become reluctant to sell their homes to VA buyers because they’re afraid that their homes won’t appraise at value.

Before we discuss the actual appraisal, let’s take a look at the process and how it works:

Understanding VA Appraisers

When a Veteran is buying a home, the appraiser that will inspect the home is NOT a employee of the VA, they are an independent appraiser (just like any other appraiser).

The appraisal is ordered through the VA who will randomly assign an appraiser who has access to the same exact information that any other appraiser would have, such as recently sold homes, recently listed properties, and any other pertinent market data.

Now it’s important to understand that every appraiser is different and all have different opinions. Some may be more conservative and others may find the value of your new home to be totally acceptable with little or no scrutiny. Now, if you find yourself in a predicament where the appraiser may not find your home to appraise for what you are purchasing it for it’s important to understand… YOU HAVE OPTIONS!

When the Appraiser is Having Difficulties

If an appraiser is having difficulty determining the value of your home the first thing that happens is that you will receive a notice called a Tidewater notice. This notice tells all parties involved on the transaction that you have 48 hours to provide additional comparable property information that supports the purchase price of your home.

Once the additional comps are submitted to the appraiser he will then formulate his final opinion of value and issue the appraisal. The Tidewater Notice may or may not rectify value, but if it does, great! If not, you still have more options.

Before we get into the other options, Veterans, Realtors, and Lenders must understand that this process is unique to VA. If you are purchasing a home with a Conventional or FHA Home Loan you do not have this option, which actually makes VA Home Loans even more competitive than any other type of Home Loan.

You Have Options

Now, if your appraiser won’t budge, and you still feel that the home should be appraising for more, you are able to request what is referred to as a ROV (Reconsideration of Value) which is where the VA will get involved. Once this happens the VA will review all information and render a final decision thus giving the Veteran yet another opportunity to satisfy the value discrepancy.

It’s worth mentioning again that the VA Home Loan Appraisal process is no more difficult than any other appraisal type for mortgage financing. In fact, it could be argued that the VA Appraisal process is actually advantageous because of the multiple streams of review that the Veteran is afforded with his/her appraisal review.

So, Veterans, if you are in the market to buy a home and you have heard that VA is more difficult because of the appraisal process and are being advised to go with other types of loans instead of using your VA benefits that you have earned, don’t believe it!

If you have questions about the VA process and you would like to speak with a Mortgage Banker that specializes in VA Home Loans, then call me today at 480-351-5904.

Thank you and may God Bless you for Your Service to our Great Country.

Semper Fidelis,
Jimmy Vercellino

The Arizona VA Jumbo Home Loan..Yes, it’s True!

The Arizona VA Jumbo Home Loan.
Many veterans do not understand all of the benefits that exist when it comes to their Arizona VA Jumbo Home Loan. Truth be told, many lenders don’t either… so if lenders are confused, how then do we expect our veterans to know. Sadly, many don’t. This statement cannot hold more truth when it comes to the Arizona VA Jumbo Home Loan. The Arizona VA Home Jumbo Loan is probably one of the most competitive, if not the most competitive Jumbo loan products that exist on the market today. Most Jumbo loans that are available today require down payments of 20% or higher. However with the Arizona VA Jumbo Home Loan this is not the case. Let’s take a look at an example.


Purchase Price: $750,000 VA Down Payment Requirement: $83,250
That’s a down payment of around 11%* . You might be wondering how I came up with that down payment amount? It’s quite simple really. VA Max Guarantee for Maricopa County is $104,250. Both lender and VA require that the loan be guaranteed by 25%. In this case the $104,250 (VA Guarantee) + $83,250 (Veterans Down Payment) = 25% of $750,000 thus giving you an insured VA Jumbo Home Loan. I can assure you that you will not find a lower down payment out there when it comes to a non-VA Jumbo Home Loan. So if you are in the market for your dream home and never considered using your VA Jumbo Home Loan, it’s time to reconsider. Feel free to call or email to see if this product is the right fit for you.
*This summary is based on a $666,750 loan amount, on a loan term of 360 months, with an interest rate of 4.25% and an annual percentage rate of 4.250%.

To see if you are qualified for your Arizona VA Jumbo Home Loan call me today at 480-538-4980!

Thank you and May God Bless you for your Service to our Great Country.
Semper Fidelis, Jimmy Vercellino

2 Documents that a Veteran Must Have when Applying for a VA Home Loan.

Many Veterans know that serving honorably in the military offers benefits of different varieties. However, what a lot of veterans do not know is how to take advantage of them, or even where to start. The VA Home Loan is no exception to this. So if a veteran is interested in obtaining a VA Home Loan, where exactly do they start? The first order of business that you need to do is get a copy of your DD-214 ( discharge paperwork) or a statement of service if active duty. This document is absolutely critical to have. Simply stated if you don’t have your DD-214 or statement of service you will not be able to obtain a VA Home Loan, reason being, it tells the lender that you were honorably discharged or have served the required amount of time to be eligible for your VA Home Loan benefits.


Now that we have the DD-214 we need to take care of our next order of business and that is our COE (Certificate of Eligibility). This particular document creates much confusion for veterans because they don’t know where to obtain it. The COE is a document that is generated from the VA which states that you are eligible, not prequalified, for the VA loan. To ensure that you are in fact prequalified to use your VA Home loan you must speak with a VA lender to ensure that you meet the credit, and income requirements. Now in order to obtain this document you can contact the VA directly, or you can obtain from a VA direct endorsed lender (somebody like myself) which can be obtained in a matter of minutes.

Lastly, please keep in mind you must have these 2 documents. If you don’t simply stated you will not be able to obtain your VA Home Loan. For more information regarding your VA Home Loan benefits you may call me direct at 480-538-4980.

Thank you and May God bless you for your service to our great country.

Semper Fidelis, Jimmy Vercellino

Why Use a VA Home Loan?

I can remember when I first began my career in the Mortgage Banking business back in 2005 of course things were much different then. So different that many veterans were being told not to use their VA Home Loan benefits because more competitive loans existed. Boy, were they wrong! The VA Home Loan is one of the best options that a Veteran has available for purchasing a home. These are benefits we have earned by honorably defending this great nation with our blood, sweat, and tears. There has been much confusion regarding VA Home Loans over the years. In reality, VA Home Loans have some of the most competitive rates that exist on the market today therefore allowing veterans to purchase more home, with lower monthly payments.
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