I recently closed on a foreclosed home with VA financing and currently have another foreclosed home with VA financing under contract and it also passed the inspections/appraisal(one even had part of the ceiling missing from a busted water pipe, but VA was fine with it since the bank did fix the pipe and there was running water). With any home, it is going to depend upon condition on the property. Use an experienced realtor that knows VA guidelines so you don't waste time trying to close on a property that would obviously not qualify for VA financing. VA has been more flexible than in the past, so Karen was correct that it isn't that hard.

It's not hard, but VA loans require a certain amount of health and safety hazards be corrected. In other words, VA won't guarantee a junky house, and a foreclosed home has a good shot at being a little junky. When you write the offer, your Agent will put in a financing contingency so that if the home does not qualify for VA financing, then you get your deposit back.