Home Buying in Navarre>Question Details

Isabelle Kel…, Home Buyer in Fort Walton Beach, FL

Will the VA approve a bank-owned property? My estate agent tells me it is approved for HomePath and renovation financing..

Asked by Isabelle Kelley, Fort Walton Beach, FL Thu Jul 25, 2013

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It is possible, but unlikely. The reason is that VA has very strict standards about conditions. It isn't about it being "bank owned"--it is about the condition that many "bank owned" or REO properties are in. The roof can only be so old, it must be clear of and wood rot (wood destroying organisms in general), and everything has to be in reasonable livable condition.

You probably would be better going the Homepath route if it is Fannie Mae Homepath eligible, and can role repairs into your mortgage.

Myke Triebold,
850-2305-6256
MykeSaysSold@aol.com
1 vote Thank Flag Link Thu Jul 25, 2013
Keep in mind that the advantages of a VA loan (no down payment), can also be accomplished by using a USDA Loan and according to many lenders it will also save you money. USDA loans are restricted based on location, they are not available in urban areas. Was this answer helpful? If so please click on the "green thumbs up" or the "best answer".

Tony Vega
Antonelli Realty
0 votes Thank Flag Link Thu Jul 25, 2013
Yes, VA is a viable option to purchase REO's / foreclosures. However the home should meet their minimum requirements regarding condition of the property. Ask your VA Lender to give you a list of the conditions that may cause VA to reject the property and keep those in mind when you are out looking at homes.
0 votes Thank Flag Link Thu Jul 25, 2013
Hi Navarre, it depends on the condition of the property whether it could meet VA requirements. I have sold bank-owned properties to VA clients. One of the big issues is the condition of the property and will it generate conditions that have to be addressed through the appraisal process. The listing agent should be able to tell you if they will work with a VA buyer. If they are not sure they can ask the Asset Manager for direction.
0 votes Thank Flag Link Thu Jul 25, 2013
Thank you....it's been a trial so far to get a good agent anyway...because I don't want to go over a certain budget, and feel that as a service-connected disabled veteran, I would get an agent that understands my needs...not so far!
Flag Thu Jul 25, 2013
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