Is it feasible to purchase a foreclosure or short sale with a VA home loan in the current market?

Asked by Mimzy, Olive Branch, MS Mon Dec 24, 2012

We have been doing quite a bit of house hunting online and the foreclosure market seems to offer more of what we would like in our price range of $225,000. We are concentrating in the Olive Branch/East Memphis Area.

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Wed Jan 9, 2013
Hi Mimzy,

It is as long as the home will pass the VA appraisal requirements which can sometimes be an issue with foreclosures because they are sold as is meaning the bank isn't going to put any more money into to the home to bring it up to FHA/VA standards.

I just did a quick search here on Trulia and found this home listed:…

This home is beautiful and move in ready!

The reason I'm showing you this property is to illustrate the difference in the monthly payment. This home is listed at $234,900 which doesn't mean that's what you have to offer but that's not really my point. On a VA mortgage at 3.25%, the principle and interest payment for a $234,900 loan is $1,046.83. If you reduce the loan amount to $225,000 it drops to $1,002.72 which is only $44.11 less per month. So for an extra $44per month you can get into an absolutely stunning home that doesn't need anything so you may want to get a second opinion on your VA pre-approval. You can also find info on my VA Mortgage website by clicking the link below.

Please feel free to contact me for a free, no obligation, second opinion or more information.
You can also check out my recommendations here on Trulia by clicking the following link:

John Burke
Senior Mortgage Banker
Peoples Bank & Trust
1 vote
Jay McMiller, Agent, Germantown, TN
Tue Dec 25, 2012

Yes, you may use your VA with either of these types of purchases. However, In order to be approved for a VA home loan, a property for sale must go through a VA appraisal. But not all properties are automatically eligible for a VA loan. I would be happy to go into detail with you more regarding the process. Please feel free to give me a call or if you would like to schedule an appointment with me, just let me know. I'm licensed in MS. & TN.


Jay McMiller
1 vote
Craig Britt, Agent, Olive Branch, MS
Tue Dec 25, 2012
Yes, you may use your VA with either of these types of purchases. I am licensed in MS. & TN. Please give me a call to arrange an interview.
1 vote
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