Federal Employees Home Loans

THE VAHLC HAP military avoidance program is designed to assist homeowners whose 1) property value is less than the mortgage balance and 2) who need to sell their home. You are not required to have a VA loan or VA loans to qualify.

If you meet the eligibility criteria, you may sell your home and have the pay your mortgage balance. The program is designed to assist military and civilian Federal employee homeowners who will suffer a loss when selling their home. This program was expanded in part of The .

Eligibility for the military short sale assistance program:

Deployed wounded, ill, or injured members of the United States Armed Forces and forward deployed wounded, injured, or ill Department of Defense (DoD) and Coast Guard civilian homeowners (including employees of non-appropriated fund instrumentalities) reassigned due to medical treatment or rehabilitation or due to medical retirement as a result of their disability. The disability must be rated 30% or higher. There must be a need to relocate as result of the injury.

Surviving spouses of the fallen. The spouse must relocate within 2 years of the death of the veteran or active duty spouse.

Base Realignment and Closure (BRAC) 2005 impacted homeowners relocating during the mortgage crisis; and

Service member homeowners undergoing Permanent Change of Station (PCS) moves during the mortgage crisis. If you have a change of duty station, you may be eligible.

How does the program work?

Step 1:
VA Home Loan Centers will determine your eligibility in the program.

Step 2:
VA Home Loan Centers will implement an aggressive marketing campaign. Where possible, VA Home Loan Centers will offer closing costs credits and other incentives to help procure a buyer. If you do not currently have an agent, VAHLC will provide representation for you (at no cost to you).

Step 3:
Upon an accepted offer, VAHLC will prepare and process the request for assistance. The escrow will close the same as with any other escrow. Any shortage of loan payoff, closing costs, or commissions will be paid for on your behalf.

VA HLC HAP / VA Loan Short Sale FAQ:

Is there a fee for this service?
There is no cost to you (the homeowner) for this service. The listing agent agent involved in the transaction will however, have to provide a capital contribution.
Will this impact my credit or security clearance rating?
No. Unlike a short sale or foreclosure, there will be no impact on your credit report. The loan shortage is paid in full.

How is this different from a foreclosure or short sale?
Unlike a short sale or foreclosure the program will pay your loan off in full. Also, you will be eligible to purchase another home upon the of the sale. With a foreclosure or regular short sale, you will have to wait before you can purchase again.

How soon can I apply for another VA loan?
Depending on the circumstances at the time of sale, the waiting period may be as short as 1 day or as long as 24 months. For more information click here.

Call 888-573-4496 (option 2) to apply for VA loan assistance or for more information. If you would like to read more about short sales and VA loans