Can You Buy A Foreclosure With A VA Loan?
If you're looking to buy a house with a VA loan, you may wonder if you can purchase a foreclosure. The answer is yes. It's always best for both the buyer and seller to work together so that the home's purchase closes as quickly as possible, which is why using your VA benefits is helpful for both parties involved.
You CAN Buy A Foreclosed Home With A VA Loan
Yes, you can buy a foreclosure with a VA loan. This process works the same way as purchasing any other home; however, there are some things to keep in mind when buying a house that has been foreclosed upon.
First, it's important to note that your price negotiation options may be limited when buying a foreclosure. The lender usually sets the asking price on these homes, and because they have already gone through foreclosure proceedings (and may even have already been rented out), they're not likely to budge much on that price point. It's also important to note that while you will be able to negotiate down from this asking price yourself once you've found the one you like, your negotiating power is going to be limited by what other buyers who have already expressed interest in this particular property have said they would pay for it as well. In many cases, though, if there aren't too many people interested in buying this particular house, its asking price might very well be all wrong anyway!
You Have Certain Rights As A VA Loan Borrower
You have certain rights as a VA loan borrower, and one of them is to inspect the property and request repairs from sellers before closing. When negotiating over this topic, you should be aware that any repair costs will be paid by you, not by sellers or mortgage servicers. However, suppose your inspection reveals serious safety hazards at stake, and the seller refuses to remedy them before closing day. In that case, the home may not be a good fit for a VA loan. You will know which repair items need to be addressed because they will be listed as contingencies on the appraisal.
You Can Use A Real Estate Agent To Assist You With Your Purchase Of A Foreclosure
The first thing you should do is talk to a real estate agent. A good agent can help you negotiate by knowing what properties are on the market and how much they're asking for.
If possible, try to find an agent who has experience working with VA loans before buying a foreclosure property through them. They'll have experience navigating the system and ensuring it's as smooth as possible for their clients moving forward (especially important when dealing with foreclosures).
When you purchase a foreclosure property, many issues can arise during the closing process. These issues will cause delays in getting your keys and moving into your new home.
If you have ever been through this process, you know how frustrating it can be! The good news is that things can be done to help prevent these types of delays when buying foreclosures with a VA loan.
In conclusion, buying a foreclosure with your VA loan benefits is the perfect way to start investing in real estate. You’ll be able to get in on the ground floor of a new market, purchase a home at an affordable price and make good use of your VA loan benefits all at once!
Did you know that VA Loans are mortgage loans available exclusively to Veterans and military families? And did you know the benefits the VA Loans offer includes $0 down payments, no private mortgage insurance, relaxed credit requirements, and competitive interest rates?
Learn more about our VA loans here.