Can you use a VA Loan on a foreclosed house?
I'm a full time college student with nothing other college income and disability for my wife, I'd like to apply for a VA loan, use it to buy a house and instead of throwing away student loans on rent, dump them into a foreclosed house for the next six years and make a profit and pay off school when I'm done.
Any pointers, takers on this?
Do you have to pay cash on a foreclosed house? Any requirements on a foreclosed home that I need to be aware of?
If you could tell me ANYTHING you think relevant...I PROMISE to give the best answerer TEN POINTS! ANNNND...that's not all! A point for every thumbs up you receive in addition to the ten points - ANNNND TWO WHOLE POINTS JUST...JUST! For answering!
- esLv 51 decade agoBest Answer
That's tough because the house must pass the VA inspection. You won't get the financing if, for instance, the home needs a new roof. The roof has to be put on before settlement, and you can't put it on because you don't own the property. Talk to a mortgage broker. There may be other loans that you qualify for, and sometimes there is money available so that you can buy a fixer-upper and repair it. Best of luck to you.Source(s): I'm a retired realtor
- 1 decade ago
1. A VA loan can be used to purchase any home that passes the VA inspections.
2. Foreclosed homes can be purchased with a loan.
3. Pointers: Make sure you have cash reserves because foreclosed homes will typically need some additional work completed after closing.
4. Make sure you get a solid home inspection.
5. Be patient...foreclosed homes often take more time than a standard resale transaction.
6. Remember that you make your money when you buy so make sure you have good information on market values and trends for the areas in which you plan to buy.Source(s): R/E Broker
- 1 decade ago
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.Source(s): Experience... Orange County, CA Realtor who works with foreclosures and "regular" sales.
- How do you think about the answers? You can sign in to vote the answer.
- Ed AtunLv 71 decade ago
I'm a vet. I want you to use your VA benefits. Just don't use them on a repo. Buy a nice house with a VA loan. Buying a repo will lead to heartbreak. When you have saved up your money for a down payment, do your first fixup. You'll make money.
VA requires the property to pass VA standards. No repo will pass them. You are not allowed to do the work. The bank refuses to do the work and price them accordingly. That low price was what interested you. There will be another one.
- 4 years ago
You can but it is very hard to find a foreclosed home that meets VA standards. VA is very picky about their homes
- 1 decade ago
Yes, but condition of the property may be an issue. Contact the veterans admin. and they will give you the guidelines. Interview a few mortgage brokers and get with someone you are comfortable with and have them explain all your options because there are to many to list here.
- Anonymous5 years ago
GET A FAST LOAN FROM A TRUSTFUL AND RELIABLE COMPANY WITH LOW INTEREST RATE CONTACT VIA EMAIL:email@example.com