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!  Buyers all over 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.

If you want to by a property that falls into the "wreck" category then you might be better off with an FHA 203 (k) loan so you can get the money you need for repairs in your loan but you can use a VA loan for a foreclosure which is decent condition.  The biggest issue my buyers have come up against is that VA does require that the electricity be turned on and I always make sure that the home has the water on as well. 

VA provides one of the few 100% financing programs currently available in a declining market area.  Even though the conventional VA loan limits are still set at $417,000 in today's Northern Virginia market that limit goes much farther than it did in the past.  VA does provide jumbo loans for eligible active duty and retired personnel who may be looking for something just a bit bigger.

Not sure whether you are eligible for a VA loan? 

VA Loan Eligibility Requirements

Need to request your VA Certificate of Eligibility?

VA Form 26-1880

Need assistance finding your new home?  You can start your search for a new home near The Pentagon, Fort Belvoir or Quantico online 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 military moves then give me a call.  I've walked in your shoes from the Far East to Europe and know what it is like to make a military move. I work with lenders who understand today's Northern Virginia market and are successful in getting VA loans to closing.   

Foreclosure properties purchased in May by my clients using VA loans:

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As an Associate Broker with RE/MAX Allegiance in Northern Virginia and native of the area I can assist you whether you are buying, selling or renting a home anywhere in Northern Virginia. For more information about the area or my services you can check VaRealEstateTalk or my Northern Virginia website.

Search all homes available in the Northern Virginia area.

If it hadn't been for the VA home loan program I never would have been able to buy my first two homes!  Now years later I'm helping military families transitioning to Fort Belvoir, Quantico or anywhere in the Military District of Washington use the VA Home Loan Program to buy homes.

There seems to be a rumor flying around Northern Virginia that you can't use a VA loan to buy a foreclosure property.  THIS IS NOT TRUE!  In the past month I've closed on two foreclosure properties in Prince William County with buyers using a VA loan without any problems.   The electricity does need to be on when the appraiser shows up but that is an easy problem to solve with a couple of phone calls and if you are having a home inspection you want the electricity on anyway.

For a first time buyer a VA loan solves the down payment issue.  VA does not require any down payment, ZERO, NADA, ZILCH and a seller can contribute up to 4% towards closing costs.  What a deal.  Worried about the VA funding fee?  You can finance the fee as part of your loan.  VA also does not cause the feared "declining market" flag to appear and suprise you with the need to come up with additional funds that FHA and conventional loans do.

VA loan limits are currently set at $417,000 which in today's market in Northern Virginia will buy you a nice home close to Quantico or Fort Belvoir.  My recent buyers have purchased townhouses in the Lake Ridge area of Prince William County for under $300,000 which only needed a little TLC (paint and carpet cleaning) to make them a great place to live.  If you are looking at a property over the VA loan limit of $417,000 you can also use your VA loan benefits by making a down payment on the amount of the loan over the current loan limit.

Not sure whether you are eligible for a VA loan? 

VA Loan Eligibility Requirements

Need to request your VA Certificate of Eligibility?

VA Form 26-1880

Need assistance finding your new home?  You can start your search for a new home near Fort Belvoir or Quantico online 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 military moves then give me a call.  I've walked in your shoes from the Far East to Europe and know what it is like to make a military move. I work with lenders who understand today's Northern Virginia market and are successful in getting VA loans to closing.   

_____________________________________________________________________________________________________________

As an Associate Broker with RE/MAX Allegiance in Northern Virginia and native of the area I can assist you whether you are buying, selling or renting a home anywhere in Northern Virginia. For more information about the area or my services you can check VaRealEstateTalk or my Northern Virginia website.

Search all homes available in the Northern Virginia area.

Yesterday's blog on Stupid Pet Tricks & Real Estate Showings ended with the mention of a naked guy in a shower.  Of course he was naked, he was in the shower for heavens sake but as Paul Harvey would say....now for the rest of the story. 

Another agent and decided to take a little time to preview a few homes in a "nicer" neighborhood in Northern Virginia.   Both of us were intrigued by a listing in Fairfax Station and when we ran the MLS information found the property listed as vacant. 

Vacant properties are terrific when you don't want to be on a time schedule and you can say what you want and figure no one will be following you around asking you a million questions.  Nothing seemed amiss when we pull up to the property.  No cars or anything that would indicate that someone was around.  The lockbox was on the door and the key was securely inside.  Figuring the coast was clear, especially since the MLS listing said VACANT we opened the door.





Now the layout of this home was a bit odd because as soon as we came through the foyer we could see him straight ahead.   Naked guy in the shower!  There wasn't a shower curtain so he was in plain view.  We shrieked, he shrieked, think Drew Barrymore encountering ET and we headed for the door.

Being the good agent that I am I stopped to lock the door and put the key back in the lockbox.  As we got into our car he comes running out the front door, thankful with a towel around his waist trying to get us to stop.  We hop in the car and lock the doors as he is trying to explain to us why he was there.  I didn't really care at that point and just put the car in reverse and haul out of there.  As we are driving away my associate is on the phone to the listing agent to let them know about naked guy.

The next day a rather contrite and apologetic call arrives from the owner of the property.  He had hired someone to do some repair work in the property and they had apparently decided to clean up after they were done.  After it was all over and we realized that there wasn't a pervert just randomly using showers in the neighborhood we were able to have a great laugh over the entire incident.

Once again it just goes to show that in real estate there are no ordinary days.  Now about the couple........

It seemed as if it would be an easy showing.  The instructions said to call the owner first so they could crate the dog.   We had a pleasant conversation, gave them a timeframe and they said they would vacate the house so we could have it to ourselves.  You have to love sellers who understand the process. 

We arrive at our appointed time and just to make sure the owners are gone I knock on the door.  From deep inside the house I hear the dog bark followed by a "shut up".  Figuring that the owners hadn't left yet I wait a bit and then knock again.  The dog barks and the same voice responsds "shut up."  Okay this is annoying why aren't they answering the door?

So cautiously I open the door and say "hello".  A voice from the back of the house says "hello" but no one appears.  Alright I guess they aren't leaving and we are going to head on in.  As we pass through the foyer keeping an eye out for the owners the dog barks again and when we hear the little voice say "shut up" we realize that it sounds more like a child than an adult.  Now I'm worried that the parents have gone and left a child behind.

As we round the corner to the dining room we find our little voice.  It is a PARROT!  Sure enough the dog barks again and looking us right in the eye the parrot says "shut up."  Go figure.  I guess it is a good thing the owners don't swear like sailors! 

Just proves you never know what you will find when you head out to show a house. 

Now about that naked guy in the shower of a vacant house?????

Yesterday touring potential bargains in the Lake Ridge area of Prince William County turned up a "half price" home.  

The property I found sold for $1,375,000 in April 2006.  Today it is on the market for $763,900 almost 50% less than the original sales price.  The current tax value on the home hovers close to $1,000,000.  Does this sound as if it might be a good investment for a savvy buyer?  Well it looked good on paper so I had to go check it out in person to see what the deal might be.

Arriving at the home you see a nice contemporary home with a terrific wooded lot.  Very private and yet with easy access to a variety of commuting options for anyone who is working in around DC.   The home has an architectural shingle roof in good condition and a little gutter cleaning and shrub pruning the home would have nice curb appeal. 

So now of course I had to figure out what the catch might be.  There is a first floor master bedroom with a large bathroom.  The bathroom had black wall paper with a small white flower print.  I'm sure that it might have been very stylish at some point in time but not today.  However removing wallpaper and replacing carpet have never kept me away from suggesting a home was a good deal. 

Still looking for the gotcha I headed up stairs.  The home advertised that it had 6 bedrooms, 4 on the upper level.  Ah ha!  The four bedrooms upstairs were in reality 2 bedrooms as you had to walk through one to get to another.  So reduce the bedroom total to 4 and start to add up the redo costs beyond carpet and paint.  Off to check out the kitchen.  The kitchen had seen its heyday about 10 years ago.  It did have granite, a strange brown pattern that I can't remember ever seeing before and appliances that are well past their prime. 

Out back there were nice decks overlooking the woods. A fawn with her baby laying in the yard enjoying the great camouflage from the grass, a nice touch of nature.   Oh about the pool.  Let's just say the Potomac River is a more appealing shade of green than this pool is.  Alright the cash register is starting to chime a little louder.   

What is hard to imagine is why this home sold for $1,375,000 two years ago.  Just a few miles down the road a new luxury home could have been purchased for the same price.  Why would either an appraiser or a lender thought that this property was worth that much money?  This home is a great example of values gone wild.

When we lament the current market we need to look at homes such as this one and remember the prices for homes 2 years ago had no rhyme or reason.  Money was easy to come by and the controls were not in place to keep values in line with the reality of the property.   

At 50% off this home might be close to the value that it should have been two years ago.  Now it is just another foreclosure that needs a new owner. 

Remember the days of calling from the backseat of the car, "are we there yet?"  Our parents usually gave us the "soon" or "in a little while" response to try and keep us happy for another 50 miles or so. 

The question now coming from the buyers as we drive around looking at houses is "has the market reached the bottom yet?"  Fear of making the wrong decision in a declining market is understandable but trying to figure out the definition of the bottom is tough. 

In the past week I have made offers for three buyers on three properties.  One was a seller owned property, one was a short-sale and one was a foreclosure.  All three properties had multiple offers! Other agents I talk to are encountering the same situation and one has 12 offers on a foreclosure listing. 

Does this mean we have reached the bottom?  I'm not sure but it does mean that buyers are spotting the good listings and making offers.  It also means that buyers who have been driving in circles for awhile have finally gotten into the buying mood.  As an agent I can't say for sure that we "are there yet" but certainly the current signs are starting to show that perhaps "soon" is coming in some areas. 

The good news is at least one of my buyers has reached their destination.  A ratified contract!

No matter how many houses you show, no matter how many times you have answered the same question over the years it doesn't matter.  The moment a first time home buyer finds the house that they were looking for and you see the light in their eyes.  WOW what a great feeling that is!

I've gotten to experience that look twice this week and it washes away all of the other wild and weird real estate happenings that have gone on in other deals. 

Oh give me more!