Yes you can get a VA loan on a foreclosure or REO property. No the number of foreclosures is not a problem. You should not need to pay off the card before you start looking. Just pay your bill on time.
When you are ready to get serious, get "Pre-Approved". You want a fully approved commitment letter with conditions. After that is obtained, then finding the property is all you have left to do. When you are ready to look, make sure you use a buyers agent that has experience with VA buyers. They will know what to look for.
If you need any help feel free to contact me.
Coldwell Banker Triad
If you're a second time user then your funding fee will be around 3.3% if you can't come up with a 5-10% down payment. If you're disabled then the funding fee is waived. VA has great rates...and NO PMI!
Another great thing about a VA Loan is that you can always do a streamline refinance w/out them repulling credit, doing a new appraisal, and viewing your income. It's a great product but can be a lengthy process.
To answer your other questions:
- Foreclosures will affect the value of the property, but will do nothing to affect the VA loan itself.
- Eventhough VA loans have no credit score requirement, having a good credit score does help.
- As long as you can budget with the credit card payment, then you should probably just leave it alone.
- Through VA, the seller can pay up to 4% of the sales price toward your closing costs - which should potentially cover all your closing costs.
I am not licensed in your state, but if you have any questions please feel free to email or call me. Good luck!