If you don't want your closing costs as part of your VA loan, you may have a chance. My experience with trying to purchase a Fannie Mae Homepath house may enlighten you. I offered more than the asking price for a property in Sewanee, Tennessee. As part of my offer, I asked for payment of closing costs and pre-paids, with the amount of my offer reflecting those costs. FannieMae would have received $3000 over their asking price even after paying the closing costs and pre-paids.
FannieMae turned the offer down flat. They were more than happy to accept the premium over their asking price, but insisted I pay for all closing costs, pre-paids, and fees that VA does not allow the veteran to pay, such as the pest inspection fee.
FannieMae appears to favor all cash buyers such as investors. If you are trying to get a FannieMae Homepath property, you better have a fat wallet and be prepared to take it in the shorts.
Most of their homes will have been rehabbed, and if the home has issues, they usually will leave them as is so the problem can be seen in which case a 203k loan would likely be needed as I don't know if VA has a program like it to to rehab a house, haven't had to do that with a VA yet.
http://www.Homepath.com is the place to go