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VA Loan Resources

  • Home Loans
    VA Loan Guide
    The VA program is one of the few remaining no-down payment programs in the market. Learn all about using your VA loan benefit.
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    VA Home Loan: Do You Have What it Takes?
    There are five categories for eligibility. Your eligibility is based on you military service. Do you meet the criteria?
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    Starting the Loan Application Process
    Once you've determined that you are eligible for a VA home loan, you can begin the loan application process, which includes six...
  • Suburban homes.
    Updated: VA Loan Limits for High-Cost Counties
    The VA loan limit for 2016 is $417K. But it could actually be substantially more if you buy a home in a “high-cost” county.
  • Family outside suburban house.
    VA Financing & Mortgages Options
    The VA guarantees a variety of home loans. There are two basic types of loans with two additional options that are appealing to...
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    IRRRL Facts for Veterans
    IRRRL stands for Interest Rate Reduction Refinancing Loan,also known as a "Streamline" or a "VA to VA" loan.
  • gray home
    What Is a VA Guaranteed Home Loan?
    If you want to purchase or refinance a home, condominium or manufactured home, the VA can guarantee up to $417,000 of the total...
  • military family in front of house
    Top 3 VA Home Loan Tips
    We've scoured the Internet to find the 3 most helpful tips to help you take advantage of this exclusive benefit.
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    VA Loan Forms
    In order to receive your Certificate of Eligibility for VA loan benefits, you will need to submit your request for a Certificat...
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    6 Unbeatable Benefits of VA Loans
    Veterans United Home Loans|
    Here's a look at six of the biggest, most unbeatable benefits of the VA home loan.
Veterans' Mortgages sponsored by Veterans First Mortgage

Using Your VA Home Loans to Buy Foreclosed Homes

Housing finance options and information

VA loans can be used to purchase foreclosed properties as long as the VA guidelines are met. Foreclosures are controlled by the servicer of the loan and are usually sold in two different ways. In most cases, a foreclosed property will first be offered through auction by the county sheriff to the highest bidder. If the home fails to sell to a third party at auction, then the home may be acquired by the lender and then made available through typical real estate listings like the local MLS.

If a VA-eligible borrower bids on a foreclosed property at a foreclosure sale auction, he or she may discover that a large sum of cash is to be delivered as quickly as 48 hours after the bid is accepted.

Due to the cash requirement often associated with auctions, a VA borrower with sights set on a certain foreclosure may want to see if that home fails to sell at auction and is offered by the lender. Once it is offered through a regular real estate listing, the property can be closed within a more typical timeframe, commonly 30 or more days.

Also, foreclosures are often sold “AS IS.” Due to the VA owner-occupancy requirement, all homes financed with the VA guarantee must be in safe living condition. If repairs are needed before the home can pass VA appraisal/inspection, often the buyer will pay for them and incur the risk. The VA will not provide its guarantee on a home that does not appraise for its sales price.

The advantages of VA loans for any real estate purchase include:

  • As little as no cash down
  • No monthly mortgage insurance premiums
  • No pre-payment penalties
  • Competitive interest rates
  • Seller can pay up to 4% closing costs
  • Streamline interest rate reduction with less underwriting
For more information about buying a foreclosure with a VA loan, contact a VA specialty lender.

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