Buying a property on a short sale is one of the best deals you can find. A short sale means the property is at a reduced price, often lower than the property’s amount on a mortgage. For people with time and money, this option could be a high-savings investment. Fortunately, for people still hoping to buy a property with a VA loan, this remains a viable option.

Understanding a Short Sale Home

The short sale process usually occurs when the lender and the homeowner try to sell the house before it gets foreclosed. They lower the price of the whole property for two possible reasons: first, they can no longer catch up with the house payments; second, the housing market has gone down, reducing the home’s value to less than what the owner has to pay off on their mortgage.

As mentioned earlier, buying a short sale home could be ideal if you have the money to pay right then and there if the lender is willing to offer a VA mortgage to pay for their short sale property and the potential purchase meets VA guidelines.

However, you have to understand that although you qualify and your VA home loan is approved, the lender still needs to agree to the VA home loan.

What to Know Before Buying a Short Sale Property With a VA Home Loan

Using the VA loan for your short sale purchase could allow you to own a home with little to no money down. If you have the ideal credit score, you can take advantage of the zero-money down payment VA home loan program.

Before you purchase a short sale property with a VA home loan, you should first meet the following qualifications:

  • You are qualified for a VA mortgage loan program.

  • You intend for the property to serve as your primary residence using your VA home loan. You should put it in writing via a legal document. That means you cannot use your VA loan to purchase non-residential properties.

  • You must have the remaining entitlement for your VA mortgage. If you have used your entitlement previously, make sure to restore it by paying your mortgage in full or completing your loan term. Doing so would make you eligible for a new purchase.

Other important information to know are the following:

  • You must get a VA certificate of eligibility before you qualify for a VA home loan. You can get this through the Veterans Affairs official website or ask your lender to get it for you.

  • The need for mortgage insurance depends on your lender’s requirements, but usually, it is not required.

  • Before buying the home, you must first ensure that the property meets the VA’s minimum standards, assuring that it is in livable condition.

  • You would need to conduct a mandatory home appraisal before your purchase. Otherwise, you would not be able to make any refund. Consider hiring a home inspector to make sure you do not miss anything.


Buying your own home through short sale properties is possible. However, you need to make sure that you meet the minimum requirements and that the lender will sell their short sale property under a VA loan. Buying short sale properties would be ideal if you know that your purchase will save you more money, so make sure everything is in good condition before finalizing your purchase.

Find the right agent or broker to make sure you avoid problematic properties. Whether you are looking for short sale properties or potential homes by Luke Air Force Base, we can help. Desert Heroes Team is a team dedicated to assisting our dedicated civil servants.