Yes you can purchase a foreclosure property using your VA... as Chris and Roland have mentioned below. If you are considering condos, the complex needs to be VA approved. You can search approved condo developments on the Veteran Affairs site. Regardless if it is a condo or home purchase, just be aware that VA loans have more strict underwriting guidelines limiting what can and cannot be paid for by the buyer. So the seller/bank needs to be willing to cover the required VA seller costs. Also, there are requirements on the condition of the property. It must be in "liveable" condition. Meaning that nothing can be missing such as appliances, cabinetry, fixtures, etc. So you need to find an REO/Foreclosure property that the prior owner has not stripped anything from.
The major advantage that the VA loan has over all other programs is that it is the only program you can still obtain 100% financing (no down payment). You may end up with a slightly higher rate but if you don't have enough for even an FHA down of 3.5%, this can get you into a property now.... and it's a great time to buy, with the overall low interest rates and majorly reduced pricing as compared to 3 years ago at the height of the market. But definitely find a very knowledgeable VA lender to step you through!
I hope that helps!! Good luck to you!
Residential Sales & Appraisals
Best wishes and thank you!
Keller Williams Real Estate
You can use your VA certificate, locate a realtor near you if you don't know any I can refer one to you. Your selected realtor will sit down with you and explain the process, connect you with a lender that is well versed in VA Loans. Keep in mind that you will need some money of your own to pay for the appraisal, property inspections and to initially cover your initial deposit even if you request it back in a credit, escrow will cash that check.