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.