It would depend on the type of foreclosure, in California
- Short Sale (prior to auction) - probably
- At Auction - Probably not, they usually require cash.
- Bank Owned (REO) - probably
If you end up in a Multiple Offer situation, it may not be the strongest loan because there are more hoops to jump through. (You may or may not be experiencing multiple offers on foreclosures in your area the way we are in Orange County, CA)
I bought a home when I moved to Charlotte, NC with a VA loan. Traditional loans are much easier, but then again, I had a downpayment for the next one because of the profit I made on the VA loan home when I sold it.
Just make sure to do a diligent home inspection when purchasing a bank owned property. Many times there is deferred maintenance because of the financial situation of the previous owners.
Experience... Orange County, CA Realtor who works with foreclosures and "regular" sales.