Previously I addressed the question “Can I Buy New Construction with A VA Loan?” Now let’s address buying a foreclosure with a VA loan.
There seems to be a rumor flying around that you can’t use a VA loan to buy a foreclosure property. THIS IS NOT TRUE! VA eligible home buyers in Northern Virginia are successfully closing on a foreclosure property using their VA loans. It is funny how rumor becomes fact by just one person saying they didn’t get the house they wanted because the VA required repairs.
A VA home loan can’t be used to buy a home that is gutted to the studs. If you are looking at a home that needs extensive repairs then you will need to check out a rehab loan (FHA 203 (k) loan) or even a construction loan. However if they home you are looking at is only missing appliances or light fixtures chances are you won’t have a problem with a VA home loan. The biggest issue my buyers have come up against is that VA does require that the utilities be turned on for the VA appraiser.
With a VA home loan giving you the option for 100% financing you can keep money in your pocket to make any repairs you might need. Also remember a number of the big box stores give active duty and retired service members a 10% discount to help you out as well. Though there aren’t as many foreclosures available in 2014 as there were in the past, they are still out there. Don’t pass them by as an option just because you’ve heard a rumor you can’t use your VA loan.
We work with both local (the best) and national VA lenders to make sure our clients get the best deal possible when it comes to buying a home.
Need assistance finding your new home? You can start your search for a new home near Fort Belvoir to get a feel for some of the local communities. Once you narrow down your search you need an agent who is knows the area and understands VA home loans and military moves then give me a call.