Can I Use My VA Home Loan For A Foreclosure Property?

VA Home Loans For Foreclosure Properties

With foreclosure rates on the rise, more and more people want to take advantage of the low prices that may come from a home going up on the foreclosure market.  Foreclosure homes for sale can be a great investment if all of the factors add up.  Many home loans are approved for foreclosure properties, but come with restrictions.  If you are looking into buying a foreclosure property, and plan on using your VA entitlement, there are some things you need to know.

Many foreclosure properties are run down and need work from the current owners lacking with the up keep of the home.  If you are a handy man, then this may not be a big deal for you.  When it comes to purchasing the foreclosure home with a VA loan, you will need to get the home to pass a VA appraisal.  If the home is listed under market value, the appraisal may come in at the new value once the current home condition is taken into consideration by the appraiser, and significant repairs may be a factor.  If a VA home appraisal comes in with repairs being needed to the home, many times the bank is not willing to make these repairs and therefore, the repairs are left to the prospective home buyers to pay for these repairs.  These are costs that are made before going to the closing table and making the home officially theirs.  You CANNOT close on a home using a VA loan unless all of the repairs are made that came in on the VA appraisal.

Can you purchase a foreclosure property using your VA entitlement?  Yes you can, however, it may be a more costly purchase than you originally set out to make on a foreclosure home.

For more information like this, and to see foreclosure homes for sale in the Camp Lejeune area check out the following pages:

 

About Rebecca Quick

I'm a full-time Realtor - an experienced professional focused on helping clients realize their real estate goals. Emphasizing the value of each of my clients, my goal is to ensure that all transactions are always completed as smoothly and efficiently as possible.

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