how to buy a foreclosure with va loan

You will not be able to apply for a mortgage under the VA loan program without this Certificate of Eligibility.
She loves turning a blank page or a lackluster stub into something more helpful, and her proudest accomplishment on the site has been starting How to Fix a Running Toilet, which has helped upwards of 3 million people over the years.
The VA provides a specific eligibility document to veterans who may apply for a VA loan.
If the home you want to buy costs more than $144,000, you may qualify for an additional entitlement of up to 25 percent of the Freddie Mac conforming loan limit.
Purchase a foreclosed home with a VA home loan by determining your eligibility and finding the right house for you and your family.
VA loans are made by banks and other mortgage companies approved to be VA lenders, and guaranteed by the Veteran’s Administration (VA).
Meet Dvortygirl, a Californian mechanical engineer who contributes to a range of wikis, and has been a wikiHow community member for over 8 years.
Even with VA loan eligibility, you will still need to meet acceptable income and credit standards.
The Multi Listing System (MLS), used by agents and brokers, has VA homes listed in your area.
Lenders will multiply that amount by 4, to come up with a maximum loan amount of $144,000.

Yes, and it could be an extreme value when using the VA loan, do you have any VA disability of 10% or more, if so, you can be exempt from the VA Funding Fee., saving you thousands!!! I have closed over 5,000 VA loans in my career as a VA loan officer with USAA, now I bring my mortgage experience with me, helping out buyers understand the pros and cons of different types of financing.
Although the Veterans Benefits Administration offers home loans to vets, the terms of the loans make it difficult to purchase foreclosed properties.
Bill White, assistant director of loan policy for the VA’s Veterans Benefits Administration, says he has considered what it means to potential home buyers.
The VA says it created the requirements to help vets and protect them from sinking money into a rundown house they later might not be able to afford.
But he says the drama didn’t help his post-traumatic stress disorder, and he frequently considered giving up on the loan in the middle of the night: "Usually at about 1 o’clock in the morning after one or two hours of my wife crying and saying, ‘Why is it this hard?’ " he says.
Winslow says she understands the good intent behind the VA’s rules, but she doesn’t understand how there could be so many homes needing families, while so many families need homes.
The Department of Veterans Affairs guarantees home loans for vets that make it possible to buy a house with little or no money down.
But many sellers are reluctant to entertain offers from buyers with the loans because the VA requires certain conditions, including that the house be in great condition.
Are you wondering why the VA has all of these foreclosed homes to sell? If you go to our site, you can read about the VA Home Loan Program, where the Veterans Administration helps veterans purchase homes by guaranteeing the loan.
All non-veterans who are interested in purchasing a VA foreclosed home can look at loan information page for financing options, applications, information on fees associated with purchasing a VA home, and all the information you need on the purchasing process.
Veterans who are interested in buying a VA foreclosed property can also use the VA Home Loan Program to purchase the home.
If you are a veteran and have found a VA foreclosed home you want to buy, contact a VA approved lender to begin the process of applying for a VA home loan.
After you have gone to the Ocwen Loan Servicing LLC website and have found a home you are interested in, you should contact a real estate professional to see the property.
The VA uses a property management company to sell all of their foreclosed homes for them.
If you are interested in purchasing a VA foreclosed property, the property management company is the place to start.
The VA foreclosed properties are all listed in the real estate MLS or Multi Listing System, where any agent can access their information and show you the home.
Remember that if you decide to purchase the property, the real estate agent that shows you the home will then become the agent that represents you in the buying process.
The Department of Veterans Affairs (VA) acquires properties as a result of foreclosures on VA guaranteed loans.
And fortunately for cash-conscious military buyers, VA loans can be used to purchase foreclosure or short sale properties.
Distressed property comps can drag down your Comparative Market Analysis value, but they may need to be included for the purposes of a VA loan sale.
Be sure to target accommodating sellers when filtering through distressed properties for your military buyers.
VA loans enable military buyers to snap up foreclosure and short sale bargains.
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.
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.
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.
(%) Year householder moved into unit – Moved in 1999 to March 2000 (%) Year householder moved into unit – Moved in 1995 to 1998 (%) Year householder moved into unit – Moved in 1990 to 1994 (%) Year householder moved into unit – Moved in 1980 to 1989 (%) Year householder moved into unit – Moved in 1970 to 1979 (%) Year householder moved into unit – Moved in 1969 or earlier (%) Means of transportation to work – Drove car alone (%) Means of transportation to work – Carpooled (%) Means of transportation to work – Public transportation (%) Means of transportation to work – Bus or trolley bus (%) Means of transportation to work – Streetcar or trolley car (%) Means of transportation to work – Subway or elevated (%) Means of transportation to work – Railroad (%) Means of transportation to work – Ferryboat (%) Means of transportation to work – Taxicab (%) Means of transportation to work – Motorcycle (%) Means of transportation to work – Bicycle (%) Means of transportation to work – Walked (%) Means of transportation to work – Other means (%) Working at home (%) Industry diversity Common Industries – Agriculture, forestry, fishing and hunting, and mining (%) Common Industries – Agriculture, forestry, fishing and hunting (%) Common Industries – Mining, quarrying, and oil and gas extraction (%) Common Industries – Construction (%) Common Industries – Manufacturing (%) Common Industries – Wholesale trade (%) Common Industries – Retail trade (%) Common Industries – Transportation and warehousing, and utilities (%) Common Industries – Transportation and warehousing (%) Common Industries – Utilities (%) Common Industries – Information (%) Common Industries – Finance and insurance, and real estate and rental and leasing (%) Common Industries – Finance and insurance (%) Common Industries – Real estate and rental and leasing (%) Common Industries – Professional, scientific, and management, and administrative and waste management services (%) Common Industries – Professional, scientific, and technical services (%) Common Industries – Management of companies and enterprises (%) Common Industries – Administrative and support and waste management services (%) Common Industries – Educational services, and health care and social assistance (%) Common Industries – Educational services (%) Common Industries – Health care and social assistance (%) Common Industries – Arts, entertainment, and recreation, and accommodation and food services (%) Common Industries – Arts, entertainment, and recreation (%) Common Industries – Accommodation and food services (%) Common Industries – Other services, except public administration (%) Common Industries – Public administration (%) Occupation diversity Common Occupations – Management, professional, and related occupations (%) Common Occupations – Management, business, and financial occupations (%) Common Occupations – Management occupations (%) Common Occupations – Business and financial operations occupations (%) Common Occupations – Professional and related occupations (%) Common Occupations – Computer and mathematical occupations (%) Common Occupations – Architecture and engineering occupations (%) Common Occupations – Life, physical, and social science occupations (%) Common Occupations – Community and social services occupations (%) Common Occupations – Legal occupations (%) Common Occupations – Education, training, and library occupations (%) Common Occupations – Arts, design, entertainment, sports, and media occupations (%) Common Occupations – Healthcare practitioner and technical occupations (%) Common Occupations – Health diagnosing and treating practitioners and other technical occupations (%) Common Occupations – Health technologists and technicians (%) Common Occupations – Service occupations (%) Common Occupations – Healthcare support occupations (%) Common Occupations – Protective service occupations (%) Common Occupations – Fire fighting and prevention, and other protective service workers(%) Common Occupations – enforcement workers including supervisors (%) Common Occupations – Food preparation and serving related occupations (%) Common Occupations – Building and grounds cleaning and maintenance occupations (%) Common Occupations – Personal care and service occupations (%) Common Occupations – Sales and office occupations (%) Common Occupations – Sales and related occupations (%) Common Occupations – Office and administrative support occupations (%) Common Occupations – Farming, fishing, and forestry occupations (%) Common Occupations – Construction, extraction, maintenance, and repair occupations (%) Common Occupations – Construction and extraction occupations (%) Common Occupations – Installation, maintenance, and repair occupations (%) Common Occupations – Production, transportation, and material moving occupations (%) Common Occupations – Production occupations (%) Common Occupations – Transportation and material moving occupations (%) Common Occupations – Supervisors, transportation and material moving workers(%) Common Occupations – Motor vehicle operators (%) Common Occupations – Material moving workers (%) People in Group quarters – Institutionalized population (%) People in Group quarters – Correctional institutions (%) People in Group quarters – Federal prisons and detention centers (%) People in Group quarters – Halfway houses (%) People in Group quarters – Local jails and other confinement facilities (including police lockups) (%) People in Group quarters – Military disciplinary barracks (%) People in Group quarters – State prisons (%) People in Group quarters – Other types of correctional institutions (%) People in Group quarters – Nursing homes (%) People in Group quarters – Hospitals/wards, hospices, and schools for the handicapped (%) People in Group quarters – Hospitals/wards and hospices for chronically ill (%) People in Group quarters – Hospices or homes for chronically ill (%) People in Group quarters – Military hospitals or wards for chronically ill (%) People in Group quarters – Other hospitals or wards for chronically ill (%) People in Group quarters – Hospitals or wards for drug/alcohol abuse (%) People in Group quarters – Mental (Psychiatric) hospitals or wards (%) People in Group quarters – Schools, hospitals, or wards for the mentally retarded (%) People in Group quarters – Schools, hospitals, or wards for the physically handicapped (%) People in Group quarters – Institutions for the deaf (%) People in Group quarters – Institutions for the blind (%) People in Group quarters – Orthopedic wards and institutions for the physically handicapped (%) People in Group quarters – Wards in general hospitals for patients who have no usual home elsewhere (%) People in Group quarters – Wards in military hospitals for patients who have no usual home elsewhere (%) People in Group quarters – Juvenile institutions (%) People in Group quarters – Long-term care (%) People in Group quarters – Homes for abused, dependent, and neglected children (%) People in Group quarters – Residential treatment centers for emotionally disturbed children (%) People in Group quarters – Training schools for juvenile delinquents (%) People in Group quarters – Short-term care, detention or diagnostic centers for delinquent children (%) People in Group quarters – Type of juvenile institution unknown (%) People in Group quarters – Noninstitutionalized population (%) People in Group quarters – College dormitories (includes college quarters off campus) (%) People in Group quarters – Military quarters (%) People in Group quarters – On base (%) People in Group quarters – Barracks, unaccompanied personnel housing (UPH), (Enlisted/Officer) (%) People in Group quarters – Transient quarters for temporary residents (%) People in Group quarters – Military ships (%) People in Group quarters – Group homes (%) People in Group quarters – Homes or halfway houses for drug/alcohol abuse (%) People in Group quarters – Homes for the mentally ill (%) People in Group quarters – Homes for the mentally retarded (%) People in Group quarters – Homes for the physically handicapped (%) People in Group quarters – Other group homes (%) People in Group quarters – Religious group quarters (%) People in Group quarters – Dormitories (%) People in Group quarters – Agriculture workers’ dormitories on farms (%) People in Group quarters – Job Corps and vocational training facilities (%) People in Group quarters – Other workers’ dormitories (%) People in Group quarters – Crews of maritime vessels (%) People in Group quarters – Other nonhousehold living situations (%) People in Group quarters – Other noninstitutional group quarters (%) Density of houses Urban houses (%) Rural houses (%) Residents speaking English at home (%) Residents speaking English at home – Born in the United States (%) Residents speaking English at home – Native, born elsewhere (%) Residents speaking English at home – Foreign born (%) Residents speaking Spanish at home (%) Residents speaking Spanish at home – Born in the United States (%) Residents speaking Spanish at home – Native, born elsewhere (%) Residents speaking Spanish at home – Foreign born (%) Residents speaking other language at home (%) Residents speaking other language at home – Born in the United States (%) Residents speaking other language at home – Native, born elsewhere (%) Residents speaking other language at home – Foreign born (%) Class of Workers – Employee of private company (%) Class of Workers – Self-employed in own incorporated business (%) Class of Workers – Private not-for-profit wage and salary workers (%) Class of Workers – Local government workers (%) Class of Workers – State government workers (%) Class of Workers – Federal government workers (%) Class of Workers – Self-employed workers in own not incorporated business and Unpaid family workers (%) House heating fuel used in houses and condos – Utility gas (%) House heating fuel used in houses and condos – Bottled, tank, or LP gas (%) House heating fuel used in houses and condos – Electricity (%) House heating fuel used in houses and condos – Fuel oil, kerosene, etc.
A list of properties for sale may also be obtained from Ocwen’s website at If you are interested in buying a VA-acquired property when it is listed for sale by Ocwen Federal Bank FSB, please contact a local real estate broker of your choice to see the property.
If you would like to find more information about benefits offered by the U.S. Department of Veteran Affairs, please visit the official U.S. government web site for veterans’ benefits at .
These acquired properties are marketed through a property management services contract with Ocwen Federal Bank FSB, West Palm Beach, Florida.
Investors and homebuyers can view the properties on RealtyTrac’s website at on Ocwen’s website at and on a government site at Investors interested in buying a VA repossession property should contact the listing agent identified on the website.
Also, similar to sales of certain Freddie Mac foreclosures, PMI (private mortgage insurance) is not required for veterans buying VA foreclosures.
Our database has hundreds of thousands of foreclosure listings and cheap homes for sale all over the nation, including VA foreclosures.
Government foreclosure homes managed by Veteran’s Affairs are referred to as VA foreclosures.
When exploring one of the VA foreclosures on HUDforeclosed.com, be sure to check the listing details for any available financing specials, and ask the posted agent contact about VA Vendee Financing as well.
The main mission of the VA loans program is to help veterans or their spouses buy homes with no money down.
If the lender doesn’t get their minimum bid for the home or decides to forego the auction process altogether, the bank places the property in their Real Estate Owned, or REO department.
It’s also just as important to find out if there are other liens on the property such as or income tax liens, back child or spousal support payments or other liens that can’t be dissolved through a foreclosure.
VA financing is restrictive in that the title must be clear, (due to financing and is not the case when buying an auction home), the property condition must be free of necessary repair and any HOA attached to the ownership, must be in good order.
There are "hard money lenders" who charge high fees and rates for short term loans that assist people at auctions, but they do require significant cash down.
A Los Gatos home that was previously listed for 1 million (short sale) was put up for auction yesterday and was sold for 1.1million. So, there are homes that sell at our auction every week.
Homes being sold by auction companies because they’ve not sold on the MLS.
Good quality homes being auctioned off because there are currently no buyers for them (typically excess standing inventory for a builder).
If the property meets those standards and the seller is okay with paying some of the non-allowable buyer’s closing cost.
There are some costs a buyer can’t pay, so be sure you’re netting the seller enough for your offer to be accepted over other offers.It’s a seller’s market right now.
V.A. requires certain standards regarding the "habitable condition" that the property must meet.
Hello, as Cory below was stating, the main concern with buying foreclosed properties is the condition of the property itself.
The answer will be on a case by case basis.  Once you have found a home, and it sounds like you have, you will need to get in contact with an buyer’s agent (usually done before finding the home) to help you navigate the transaction and a mortgage person who is experienced with VA loans to help you handle the financial side.  The mortgage person will send an appraiser to do one of three things: verify that the home is in a condition that is acceptable to finance, provide you with a punch list of items that need to be addressed before approving the loan, or deny the loan based on the condition of the property.  VA loans are strict because they are not requiring any down payment.  The appraisal MUST corroborate with the agreed sale price or you will not get very far.  Keep in mind that you pay for this appraiser so make sure you have found a home you’re serious about and you have an offer price that is based upon true market value (not what you think it’s worth) because you do not get that money back if your lender’s appraiser shoots down your contract.
In order to buy and flip VA loan foreclosure homes, you will need some money (less than $2,000) and an average credit score (620 or above).
If you have money for a down-payment but cannot afford a full renovation, consider a VA HLC – FHA rehab loan.
For a free list of government owned foreclosures or to get approved for a government home loan (including VA loan, FHA loan or USDA loans), click here.
If you lack funds for a down-payment or want a cosmetic fixer upper, you should apply for a VA Home Loan, FHA 100, or USDA Home Loan.
Because the renovation is paid for with proceeds of the loan, not much of your own money is needed for repairs.
These loans allow you to purchase property in any condition (even condemned properties) and will even give you money to renovate the home or complete the construction.
You can use VA to purchase foreclosures and short sales.  The only risk is that if there are repairs needed, you would need to complete the repairs yourself prior to settlement, which could be a concern since you don’t own the property.  However, this is the case for all loans.  There can be repairs needed on FHA, VA, and conventional loans.
 Answering Gregorio’s comment: I actually meant to say paid by the SELLER, but this is my understanding as explained by the lender I use: There are costs like the buyer’s escrow that cannot be paid by the buyer but can be paid by realtors, lenders or sellers.
I have done several of these going all three routes and repairs have sometimes been required with all three programs.   In most of the cases, the buyer took the risk and did the repairs since they were somewhat minor and were getting the home below market value.
In a word: Yes….. in more words… be aware that due to your VA loan requiring certain costs to be paid by the lender involved in the REO or short sale, you may have some difficulty getting your offer to fly.
There are ways of making this work and this is where the expertise of a highly experienced Realtor comes in..  Where I am, (in Southern California) we are having multiple offers on our short sale and REO properties which can make it very exasperating for VA buyers.
Help for VA Borrowers in Default Veterans who become delinquent on a VA home loan can utilize agency-provided servicing assistance to help resolve the problem.
These low-cost loans come with a rigorous yet flexible underwriting process that’s helped insulate veterans and their families from the ravages of default and foreclosure.
In the wake of the subprime mortgage meltdown, loans backed by the Department of Veterans Affairs continue to provide veterans with a secure way to finance a home purchase.
Eligible veterans may receive a lower interest rate for up to one year and stave off foreclosure or eviction for up to nine months from their period of military service.
In fact, VA loans have the lowest rate of foreclosure of any major loan product available, according to recent data from the Mortgage Bankers Association.
Despite success in the face of foreclosure, VA loans and veterans haven’t been completely immune to the economic turmoil of the past two years.
The agency urges struggling veterans to immediately contact their lenders and to explore options to avoid foreclosure.

Tags: , , ,