Home Buying in Tampa>Question Details

Angelbrd, Home Buyer in 33544

What are my chances of getting a foreclosed home (in great condition) with a VA loan?

Asked by Angelbrd, 33544 Tue Jun 19, 2012

Well since the last short sale fell through, I am looking into foreclosed homes in 33544. The home(s) we are looking at would meet all of the VA inspection requirements and I can wait the length of time to close -im in no immediate rush.. Most of these homes are in preforeclosure status but I want to be ready when/if they become available. However I only prefer my VA loan over a conventional loan as we dont have the percentage down for a conventional loan.

Help the community by answering this question:


" Most of the realtors here cant even compile a good enough list (outside of the generic ones I can find myself on trulia)"

There is a reason for that. That reason could be you have NOT personally contacted a Realtor(r) to indicate you will use their services to make a purchase if they find you a home to buy.

Too many citizens have an expectation real estate agents will labor freely on the behalf of a buyer who then evaporates. This IS a business, not a hobby.

Many agents HAVE responded to your inquiry. Now, if you are serious, you need to call someone.

Don't click that 'contact' link
Don't send an email.
CALL if you are serious.

An agent will need a better understanding of your situation before investing the labor to dig out the best homes for which the potential is high you will be able to purchase. Making a commitment to a real estate professional enables them to seek property that is not yet on the market for the purpose of giving a veteran an early opportunity. In most cases the real estate agent will lose money representing you. I truly hope you keep this in mind as you work towards finding a home for you.

When you connect with an agent, ask how much time will be spent on your behalf and what their likely compensation will be. Do the math. Then it will be your turn to thank them. Then, perhaps you will understand why you haven't observed anyone burning the midnight oil for someone who has not indicated they are even considering doing business with a real estate professional.

I wish you the best of success.
There are some exceptional folks waiting for your call.
1 vote Thank Flag Link Sun Jun 24, 2012
Active duty or prior service Marine, Army, Navy, AF, Coast Guard, National Guard, what ever you are you need to let me educate you on what's available which nobody else is going to tell you about.

So many borrowers come to me after its too late and it makes them sick about the savings they could have easily received had they only known in advance.

Steve McRory
Pro Option Mortgage/ Florida
Ph: 888 662 4404

Prior Service U.S. Marine Corps
1 vote Thank Flag Link Thu Jun 21, 2012
Hi Angel,

In Florida we have a State Bond Program that could give you up to $7,500 towards your downpayment and closing costs. You will need to work with an "approved lender" and for a family of two the income cannot exceed about $70k. The Military Heroes program will not require you to be a first time homebuyer. Go here to see if your income and family size will qualify and also find the list of Approved Lenders:


Also if you're willing to live in certain areas of Tampa Bay, we have the USDA mortgage with 100% mortgage and you do not have to be a Veteran but you cannot earn above a certain amount and the house must be located in one of the designated areas. Pasco County has many areas that qualify.

Hope this helps.

All the best,
Alma Rose Kee, PA
Future Home Realty
1 vote Thank Flag Link Wed Jun 20, 2012
Being reminded by my associate in Florida, I did some research that I need to share:

In 2007 they added the FUNDING FEE to the VA loan.
This fee is 2.15% for a first time user, and 3.3% for a second timer.
Being a Realtor and a Veteran, I am outraged by this:
It almost double the current interest rate, (which is already higher for VA loans)!

The only exception to this is that the Veteran is also on a VA Disability.
I normally would not wish a disability on anyone....

The only good news that I can impart is that the Funding Fee can be included in the Loan;
which also means that you would be paying interest on fee!

With this being an election year; I wonder if this is how the administration is going to take care of our Veterans?
1 vote Thank Flag Link Wed Jun 20, 2012
Thank you for serving our country! Just some food for thought...I would first get pre-approved. Once you know how much you can spend on your new home, you can make better decisions. Short sales and foreclosures take time and patience. The housing market in Florida seems to be stabilizing and even rising in price. That being said, the longer you wait to purchase your home, the greater possibility of higher prices and the longer you pay rent. That money could be going toward your new home. Some of the developers are offering phenominal deals. It would be an honor to represent you.

Please contact me if I can help you any further.
1 vote Thank Flag Link Wed Jun 20, 2012
Hello and thank you for your service!

You mention that a lot of the homes you are interested in are in preforeclosure. The problem you are going to run into is that it takes forever for the preforeclosure properties to hit the market. It take 2-3 years for a lender to foreclosure on a property in Florida. After the lender forecloses, it is unknown when the bank will list the property for sale.

I would recommend keeping your options open. The larger lenders like Bank of America, Chase, Wells Fargo, etc have finally started approving short sale in a timely manner. Bank of America short sale typically take 3 weeks now.

Our local market is very competitive right now, so timing is very important. Please let me know if you would like to be set up on an automated property search. You will receive new listings as soon as they come on the market.

Please feel free to call or email me with any questions you may have. Also, if you need a great VA lender, I would check out Veteran United Home Loans. They specialize in only VA Loans.

Good luck!

Andrew Schmitt
Yellowfin Realty
Sales Associate / Property Manager
Cell: 813-857-1543
1 vote Thank Flag Link Wed Jun 20, 2012
Just curious... why did the last short sale fall through? Did the "genuine" price required by the lender exceed your price range? This is one thing that buyers may not realize, the asking price (unless approved by the lender taking a possibly significant loss) is pure fiction until/if approved.

The good thing is you have now narrowed your focus to a certain area so as long as you are loyal to your Realtor she will immediately notify you of new listings that fit your criteria. The crucial thing in capturing a spectacular deal is to be very FAST and see it the first day on the market and make your offer the FIRST day on the market.

If you can come up with 3.5% down you will open up more possibilities because you can then get an FHA 203K streamline fixer upper mortgage or with a Fannie Mae owned foreclosed home with 3% down you can get a HomePath Renovation mortgage. These will allow you to buy an ugly fixer upper (even with a bad roof and no a/c) and then have nice upgrades and functional repairs done immediately after closing. There are fewer "retail" buyers chasing the fixer uppers so you will certainly have less competition. The beauty is you will have time to fix up the place since your lease doesn't expire until next year. The bad thing is with most properties they will not accept a delayed closing beyond 60 days so unless you can break your lease you will be paying both rent and a mortgage. I'm sure you already know this. Also on a short sale, once it's approved you MUST close normally within 30 days. On REOs and regular sales it's not likely a seller would delay beyond 60 days to close.

So ask your Realtor that placed your short sale offer (hopefully it wasn't the listing agent, that's foolish in my opinion because lenders scrutinize short sale deals that don't have separate agents for the seller and buyer) to give you a free listingbook account to "search like a Realtor". It will identify if a property is "active" or merely "active with contract" and not available to buy.

All the best,
Alma Rose Kee, PA
Future Home Realty
0 votes Thank Flag Link Mon Jun 25, 2012
Dear Angelbrd. I have helped many customers like your self purchase bank owned and other homes via VA financing. Your chances of getting one are definitely not 2%. I will admit that if the property has multiple offerers, that greatly reduces your chances as banks tend to gravitate towards cash, then 20-30% buyers, then VA/FHA/USDA.

My advise to you is to stay the course. Keep up the fight. Dont quit. You will be a home owner.

You do want to arm yourself with knowledge and be prepared to show your qualifications to best plead your case.

Good luck

Tom Lifrieri

ps, try using my website to search for homes (even if you already are represented by a realtor). It is complete with every available home and you can search by map, subdivision and dozens of other criteria
0 votes Thank Flag Link Sun Jun 24, 2012
Angelbrd, 33544, Zero. Your financing criteria is not competitive enough in the foreclosure, bank-owned arena. Most are in need of repairs and you'll be buying the properties as is with no warranties. Some distressed properties lack a/c, have green pools, or other items that are considered health risk and would have to brought current to close.

The percentage down, will also be based upon the type of property that you select. Remember a transaction consists of two parts; the borrower(s) and the property. Both have to qualify for a closed transaction. Any risks in either side then the lenders adjust the % down, interest rate or deny the deal.

VA, FHA or conventional financing you would find your most competitive properties in the non distressed arena. Why? Because certain repairs discovered during your inspection period would have to be addressed to close.

Good luck

Lynn Brock
Brock Realty

If you like to search for properties in real time, visit our website and sign up for a free Listing Book account.
0 votes Thank Flag Link Sun Jun 24, 2012
I don't know why you would not consider a VA loan if it meets the requirements. USDA is like an FHA program so you are going to have the same issues if the property is in non-appraisable condition. I've closed bank owned with VA/FHA and you should pursue that.
0 votes Thank Flag Link Thu Jun 21, 2012
Thank you everyone for your responses. This has been such a tedious process. Most of the realtors here cant even compile a good enough list (outside of the generic ones I can find myself on trulia) . So we have limited access to finding out about short sales or foreclosures that may get us more bang for our buck. We also only want to live in one particular neighborhood that is actually thriving in Wesley Chapel so it limits us significantly. Builder homes are simply out of our price range in this neighborhood.
Weve heard about the USDA funding but we are also unclear about that as well. Bottom line is we want a nice enough house before the end of our lease next may...and it just doesnt feel like time is on our side. But from what you have all stated, it seems as VA may not be our best option in buying.
0 votes Thank Flag Link Thu Jun 21, 2012
Your best bet is to keep all options open. Get pre qualified and your pre qualified letter in place then look for what's available. Short sales the bank will do a three percent towards buyers closing costs and foreclosures are the same. You may be our bidded by cash or an offer netting more to the seller. I just sold a great new construction home with VA financing no money down a lll closing costs and the funding fee rolled into the mortgage and the buyers are extremely pleased. Call me and let me he you with your next purchase.

Tom May
Keller Williams Tampa Central
0 votes Thank Flag Link Tue Jun 19, 2012
Prior service U.S. Marine Corps

Tampa Mortgage Broker

Avoid the VA loan if you can. That VA Funding Fee is is Brutal!

Contact me at:
0 votes Thank Flag Link Tue Jun 19, 2012
First of all; thanks for serving.

Have you spent some time sitting down with someone at the VA Office; they are there to help you, they have no axe to grind, they will not BS or lie to you.

I have seen that Shortsales, as a rule, are in better condition that most REOs, if for no other reason that people are still living in them.
If an REO has been trashed or vandalized, it may not pass a VA inspection and they will not allow you to go in to repair anything.
It is a trade-off, the SS takes longer, but you probably won't have to fight multiple offers.
But choose your REO carefully, and do not fall in love until it is yours.

You realize that with the VA loan, you will pay a little less Closing Costs, but you will pay a little higher Interest Rate. You also will not have any PMI.

Good luck and may God bless
0 votes Thank Flag Link Tue Jun 19, 2012
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