Posted on Jan 23, 2020
MCPO Reynaldo Abayan
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I sold a house under a VA loan back in early 1990 as a short sale. I believe the house value then was 120k but the loan was about $155k. During the shortsale, VA covered the difference of $35K. And told me that if I ever use a VA loan again, I have to repay the loan first. It is now 2020 and there have been plenty of relaxation of VA home loan programs but not this one. I tried to use my Certificate of Eligibility 2 years ago and my case has not changed. Is there an effort to forgive that difference so i can use my full VA loan benefit again?
Posted in these groups: 5bc658ad Forgiveness
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Responses: 1
LTC Program Manager
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Edited 5 y ago
So is the difference an actual debt that counts against your credit or just a reduction of the max VA loan you can get?

If you don't have to pay back the difference you should just get a traditional loan on your next home and you made out like a bandit!
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