VA loans

Is There a VA Loans Version of the FHA Back To Work Program?

August 30, 2013

Is There a VA Loans Version of the FHA Back To Work Program?


A reader asks, “Will the VA follow the new guidelines the FHA has changed as of this August? The name of it is listed down below. this came down on August 15–FHA Back To Work Program Waives Foreclosure, Bankruptcy, And Short Sale Waiting Periods:

If you’ve experienced any of the following financial difficulties, you may be program-eligible :

Pre-foreclosure sales
Short sales
Chapter 7 bankruptcy
Chapter 13 bankruptcy
Loan modification
Forbearance agreements

The FHA realizes that, sometimes, credit events may be beyond your control, and that credit histories don’t always reflect a person’s true ability or willingness to pay on a mortgage…

This FHA loan program, Back To Work, does not have an equivalent program offered by the Department of Veterans Affairs at this time. At the time of this writing, the VA has not released any VA Circulars announcing such a program, but that does not mean it is not currently reviewing the options.

We do not have any inside information as to what might be happening at the Department of Veterans Affairs over this issue, but since there are often parallels between VA loans and FHA loans, it is definitely a fair question to ask. The short answer is that we simply don’t know if the VA will consider its own version of Back To Work.

If such a program does become available for borrowers who want to purchase property with a VA guaranteed home loan, we will report on it in detail as soon as information becomes available from the VA. Until then we can only point out that there is nothing on the VA official site indicating a similar program is currently in the works.

Do you have questions about VA home loans? Ask us in the comments section.

  1. Angela S

    My spouse and I are both retired AF and receive VA disability. Due to reassignment in 2010, we completed a short sale, with a final sale date of April 2012. We would like to purchase a home in 2014. Our FICO scores are above 620, our current combined income is 11,500/mo. My spouse is a recent nursing school graduate and I am also a nurse. We hope to increase our income to 14,000/mo. Our current DTI is below 10%, will qualify for a VA loan?

    • Joe Wallace

      If you're asking whether the short sale would count against you, if you were current on your mortgage payment at the time of the short sale many lenders including, would process your application in the usual way. If you were not current on your mortgage at the time of the short sale you would have to wait 12 months from the time of the short sale.

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