By Suraj Byanjankar

Sep 8, 2015

Written by Guest blogger: Sherman Hardy

Foreclosures and its counterparts (short sales or deed-in-lieu of foreclosure) can be extremely problematic for military buyers. For those who have faced foreclosure may or may not know that it was not in their best interest. Having a foreclosure means you will not be eligible for a VA loan for at least two years. Borrowers who experienced the loss of a home due to a foreclosure proceeding will not be able to purchase for two years after the deed is transferred from their name.

I wanted to clear the misconception about VA Home Loan Guarantee Eligibility after a foreclosure; a veteran who has a VA loan foreclosed upon can obtain another VA loan in the future. Many service members have been told otherwise by bank officials, mortgage brokers and others who either didn’t understand the program or who were looking to make a buck with their own financing options.

When a veteran home has been foreclosed upon the lender must determine how much of a primary entitlement the borrower has left (if any at all). This is where a second-tier entitlement comes into play. One of the downsides to a second-tier entitlement is there’s a minimum loan amount of $144,000. This secondary entitlement is also used to allow a veteran to have two VA loans at the same time.

Sherman Hardy, Real Estate Professional, 301-659-5004 or


*This blog is for information purposes only. NFM, Inc. accepts no liability for its content.  Please visit the US Department of Veterans Affairs website for more information:

These blogs are for informational purposes only. Make sure you understand the features associated with the loan program you choose, and that it meets your unique financial needs. Subject to Debt-to-Income and Underwriting requirements. This is not a credit decision or a commitment to lend. Eligibility is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral, and underwriting requirements. Not all programs are available in all areas. Offers may vary and are subject to change at any time without notice. Should you have any questions about the information provided, please contact us.