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 for the appraisal 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. Conventional VA loan limits are still set at $625,500 and in today's Northern Virginia market that limit goes a long way. 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
In 2008 I had multiple buyers purchase a home in foreclosure using VA loans. From a condominiumin Belmont Bay, a townhouse in Lake Ridge and a detached home in Springfield the buyers were able to purchase the home they wanted and get to closing without delay.
If you are thinking about using your VA loan to buy your next home in Northern Virginia give me a call. We can meet to talk about the options and opportunities in today's real estate market. Take a sneak peak at some popular Fort Belvoir neighborhoods and read more details on Military Relocation before you start your on-line home search. 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 multiple lenders who understand today's Northern Virginia market and are successful in getting VA loans to closing.
© Cindy Jones-"VA Loans and Northern Virginia Foreclosures -Putting the Rumors to Rest"
No Hassle-No Pressure-Just Straight Talk About The Northern Virginia Real Estate Market
Military Relocation Specialist serving military families relocating to and from the Pentagon, Fort Belvoir, Quantico MCB and all of the Military District of Washington installations.
Licensed in Virginia
Yes, indeedy. VA loans are an excellent opition for most any home including foreclosures. I wish more vets out there knew what they could do so they'd go ou there and get themselve their own personal home.
Ken-I'm closing tomorrow on a property in Prince William County, not a foreclosure, with a military family using a VA loan. I don't know how all the rumors getting started about VA appraisals being difficult but my buyers haven't had any problems.
Great post Cindy! I do not know how all of those rumors get started.
My referral clients often are using VA loans and it is nice to know that they can include foreclosures on their list of homes to consider.
Pat-VA loans are great and it is so nice to see them back in use again. My clients settled today on a new home in Woodbridge with a VA loan!
Ngozi-rumors are easily started, yet much harder to stop.
Great article, very informative
Kathy-thank you for stopping by. You are obviously in VA loan territory as well. Have a great 2009.