This is a question that comes up from time to time with my buyers using a VA loan for purchase. Can Iuse my VA loan to buy a foreclosure?
It's possible, but not necessarily easy.
The house is going to need to be in excellent condition since banks sell "as is". You need to be looking for an extremely good condition house.
Once you find that home it's time to make an offer. Your VA loan is the last loan the bank will want go with if they have buyers with other types financing. In theorder ofseller preferenceswill be
- first,the cash buyer,
- the conforming buyer,
- then FHA,
- and last VA.
Each represents additional layers of contingencies. The foreclosure bank just sees this as additional reasons why a contract may fall apart.
Are you ready to save money?