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Michelle L J…, Home Buyer in Fort Sam Houston, TX

how do i use a va loan to bid for a house?

Asked by Michelle L Johnson, Fort Sam Houston, TX Sun Oct 18, 2009

Help the community by answering this question:


First, fill out the required paperwork. You can find the app online or ask at your senators office or at the v.a. itself. You have to mail the form to St. Louis ( I think) then wait awhile to get the paper saying you are approved. Then any lender who can issue a V.A. loan can help.

If you want to make an offer on a house, any normal for sale house any mortgage lender can do this. Your realtor will be glad to help you find one.

If you want to bid on a sheriffs sale be very concerned. You have no protection. There could be major problems with the property you can not see. There could be more loans, leins, and encumbrances not shown. It could be in the 10's of thousands that are owed that you buy this way. The bank is selling their interest in the property, not the property itself. Like I could sell my interest in the brooklyn bridge. Worthless, but glad to do so.

PLUS in some states ( not sure which ones) just because you buy the property does NOT mean it is yours. The person who lost it to foreclosure could come back in 6 months, a year, or whatever the time frame is and pay you ( with like 8% interest) and reclaim their property. Anything you paid on it is now gone. Taxes, roof, siding, all are now the old owners. So basically it is a big risk with little upside for buying a place to live yourself. I suggest looking at completed foreclosres (REO's) that give you complete title.

If you are going to but at an auction where they guarantee the condition of the house AND the title you still have a small problem. Most auctions want like 10% down just to be able to bid. Or at least a few thousand$$$ cash. Then you have only 30 days ( usually) to pay the rest. If you do not you lose your 10%. A lot of lenders could take longer than 30 days to complete their paperwork. I do not see it as worth the risk.
1 vote Thank Flag Link Sun Oct 18, 2009


A professional realtor can assist Buyers who have been approved for a VA Loan to locate properties to include but not limited to Bank-Owned / Foreclosed properties that meet VA Loan requirements. In today's marketplace, it is important to seek the assistance of licensed professionals when buying a home.

It is advisable for a Buyer to get a Pre-Qualification Letter / VA Loan Approval Letter "before" the Buyer begins to search for a home. The Buyer needs to contact a banking institution or lender so the Buyer will have knowledge about their price range, closing costs, taxes, insurance, as well as other potential expenses which may be involved in purchasing a home.

Most Sellers will not accept an offer without proof of funds or a letter of credit/approval from a banking institution or lender. The Seller wants to know they have a viable offer and the Buyer has the funds to purchase the property.

The Buyer may wish to talk with their lender about "VA Loan Home Requirements and Guidelines" to help save time and money. I have been much more successful in helping Buyer's with VA Loans when we look for homes that we believe will meet VA Loan Home Requirements.

VA Loans have very tight guidelines for homes so if a home requires alot of repairs such as heating, air conditioning, plumbing and electrical system problems or the home needs a new roof, it may be difficult for a Buyer to purchase the home with a VA Loan unless these items have been repaired.

Since the VA Loan requirements for a home are very strict, it makes it a bit more difficult for the Buyer to purchase a Bank-Owned / Foreclosed home with a VA Loan because a high percentage of these types of properties are in need of major repairs. The Buyer may also be required to purchase the home "As Is" with no repairs made to the property by the Seller.

A Real Estate Auction may require a Buyer to buy a home "AS IS" with no loan contingenies which makes it difficult if the Buyer wishes to utilize a VA Loan. The Auction company may require a Buyer to pay an additional percentage over the winning bid for the home therefore potentially increasing the price of a bid by approximately 3 -10 percent. It is also difficult for a Buyer if the Buyer is bidding on a Bank-Owned / Foreclosured home which the Seller is selling "AS IS" and the home is in need of major repairs.

A Buyer would need to talk with their lender before bidding for a home being sold on the court house steps for it may not be able to meet VA Loan Requirements and the Seller may require a cash, purchase "AS IS", with no loan or other contingencies.

It is important that a Buyer work closely with their lender and fully understand the maximum amount of home the Buyer may purchase and the requirements a home has to meet to be funded by a VA Loan.

I have been successful in assisting Buyers locate Bank-Owned / Foreclosed Properties. If you are not working with a realtor, please let me know if I may assist you.

Kindest Regards,
Diane Strickland
REMAX Accent
(912) 429-1093
(912) 756-5888

Information Subject to Errors and Omissions. No Warranties or Guarantees.
0 votes Thank Flag Link Sat Jun 16, 2012
I also agree with the information that has been provided on here but there is one more thing you need to consider. If you are looking at a condo, townhouse or co-op you need to find out what the rent to own occupancy ratio is and what the association guidelines are for being VA approved. Not every home is VA eligible so you need to call the association or ask your lender for a current list of VA approved properties. (As an agent, there is nothing worse than showing a buyer something that they are not eligible for with their financing after they have already fallen in love with it.)

Good luck! VA loans are a great financing option and there are plenty of great deals waiting for you!
0 votes Thank Flag Link Mon Oct 19, 2009
Both answers are correct. We do need more details as to what you are asking. Many people say bid when they are meaning putting an offer to purchase on a home. Is this the first time that you're looking to buy and use your VA? The first thing you really need to do is find out what you are qualified to purchase. I can certainly recommend some local lenders for you as I do work the Richmond Hill area. Were you also looking in Hinesville to be close to post? Anyways, once you have gotten pre-approved you can then move on to the fun part of looking for a home. You will want to choose a Realtor to work with and represent you, to help find the right home for you, to help negotiate, and to walk you through the buying process and take you through closing. If you aren't currently working with an agent, I would be happy to help you find the right home. I can easily be reached through email at or by phone at 912-655-2554. I have helped find homes for many military families for both Fort Stewart and Hunter. There are some great prices on homes currently in the area with the adverse reaction to the economy. There are foreclosures available as well, but any home that you decide on must pass VA guidelines so some of the foreclosures may not qualify for your type of financing though.
Web Reference:
0 votes Thank Flag Link Sun Oct 18, 2009
Hi, what kind of bid? sheriff Sale, web action? Please provide more information.
Thank you.
0 votes Thank Flag Link Sun Oct 18, 2009
Hi Michelle,

All you have to do is contact Loan Officer who is specializing VA loan.
Get a Pre-Approval letter before you going to look a house.
0 votes Thank Flag Link Sun Oct 18, 2009
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