can a VA loan be used on a foreclosure that is not owned by the VA?

Asked by Cari Debakey, Charlotte, NC Wed Apr 24, 2013

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Stephanie Bl…, Agent, Charlotte, NC
Wed Apr 24, 2013
Hello, I'm actually working with a VA loan customer currently who is purchasing a foreclosure owned by an outside bank. So as you can see the short answer to your question is yes the VA does allow you to purchase foreclosures owned by other entities. One of the biggest things to be aware of is that the VA will require that any repairs that are noted be repaired prior to the loan being granted and deal closed. As most foreclosures are considered "as-is" offers, these repairs are typically the responsibility of the prospective buyer, which is a significant risk and one that must be fully calculated before taking. It is best to work with an agent who has experience working with the VA and can guide you through the process. Foreclosures can be a great deal, but not working with the right agent can turn your dream into a nightmare.
1 vote
Tom Sommers, Agent, Lakeville, MN
Wed Apr 24, 2013
Yes you can do that the only issue is there are some fees the VA will not alow the buyers to pay and may foreclosure banks don't want to pay them either. try to find out as much information from the listing agent ahead of time before you move forward and write an offer.

best of luck,
Tom
1 vote
Jan Teel, Agent, Matthews, NC
Wed Apr 24, 2013
Absolutely! If you are looking for some even more attractive "no money down" options, you may want to consider a purchase in USDA territories. If you purchase a home in these designated areas you may save your VA eligibility for another home and your PMI or MIP (referring to private mortgage insurance) will be far less per month, saving you thousands over the life of the loan.

For more information on who to contact or eligibility requirements, please feel free to contact me (if you haven't committed to another buyer's agent at this time). I would be honored to help you.

Blessings upon you...
Jan Terl
TEEL Realty
704-641-0167
1 vote
dave, Agent, Charlotte, NC
Wed Apr 24, 2013
Cari,

you can use a VA loan to buy any home. it does not have to be a VA foreclosure. The difference with a VA loan is that the VA appraiser is looking at the house slightly different than a conventional or FHA appraiser would and you will want to ask your agent if they are familair with VA loans. Not all homes qualify for a VA loan becuase of teh condition of the house.

Dave diCecco
Realtor/Broker
Coldwell Banker United
Cell:704-519-7895
ddicecco@cbunited.com
http://www.davedicecco.com
1 vote
*waste
Flag Wed Apr 24, 2013
Is there a way to find out the guidelines the appraiser will use in deciding if the house will qualify.......before I was everyones time
Flag Wed Apr 24, 2013
, ,
Thu Apr 25, 2013
As a VA direct lender I can give you 100% certainty that you are good to go! You have no limitations on the property being in foreclosure.

Best of Luck!
0 votes
Daniel Fisher, Agent, Charlotte, NC
Thu Apr 25, 2013
Good morning, Cari:
Although some loan programs have locational requirements, type of financing and the type of property are generally independent of each other. The main problem with a VA insured loan used to purchase a bank owned home is that these homes are usually sold in "as-is" condition. If there are required repairs, it can become very difficult to get approval. If you have a full time agent with a Masters degree in Planning with Finance and over two decades of experience, working for you, you will likely do better in negotiations. I'd be pleased to provide that service. If you appreciate this answer, please give it a thumbs up, or if this was the most helpful answer, please say thanks with a best answer click.
0 votes
Michael Bowm…, Agent, Charlotte, NC
Wed Apr 24, 2013
Yes you can! I just closed one last month that was a normal sale, and one the month before under the same terms. VA is a program for the veteran, and has nothing to do with the type of property you purchase.

If you need any assistance, I work in foreclosures daily and would be glad to assist!

Michael Bowman
Benham Real Estate Group
704-490-5644
Mbowman@benhamrealestate.com
0 votes
Kathleen Tur…, Agent, Charlotte, NC
Wed Apr 24, 2013
Absolutely, as long as the property meets the VA guidelines per the appraiser. Best of luck in your search!
0 votes
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