U.S. military veterans are given loans that are guaranteed by the VA Home Loan Program.  If that homeowner defaults on that loan, the lender is refunded all of their expenses of the foreclosure process. The property is then owned by the Department of Veteran Affairs who will in turn offer the property for sale to the general public. If you are shopping for a home or a real estate investment, consider purchasing a VA foreclosure.

Properties with VA loans that are foreclosed are managed by a bank based in Florida. Real estate agents list these properties on the MLS and the general public has the opportunity to purchase the property. Interested buyers must make their offer through a real estate agent, who will present their offer to the managing bank. That bank will review all offers received during the property’s offer period and evaluate each one to determine which qualifies the best for the sale of that property.

While there are many benefits to buying a VA foreclosure, the smart buyer will be cautious.  These properties are sold as is and could have been vacant for a long period of time. Keep in mind the property you are looking at may need repairs and renovations to even make it livable again.  Most likely general maintenance was slack by the previous owner.  A prospective buyer would be wise to have the property thoroughly inspected by a professional before making a final decision. As well, a prospective buyer that is working with a real estate agent with experience in VA foreclosures will give them a better chance to make an offer that is accepted too.  A real estate agent experienced in VA foreclosures is familiar with what the managing bank is looking for from offers.

With all these cautions and warning, what are the benefits to buying a VA foreclosure home you may ask? Well in addition to the discounted prices, the financing approval tends to be not as tight as traditional loans. Nor do you not have to be a U.S. Veteran to qualify for these homes. The lower interest rates are another benefit that will save you money over the length of the loan too.  

Other features that make a VA foreclosure attractive is zero down payment along with the closing costs being paid by the VA. Many times private mortgage insurance isn’t required as it is with standard loans. It is also not required for the buyer to live in the home either. This is a great opportunity to enter the world of real estate investing!

So if you are potentially interested in purchasing a VA foreclosure home, the best way to locate these properties is to hook up with a real estate agent that has VA foreclosure experience. When you have found a property you want, that real estate agent will have the best knowledge in preparing the paper work and advising you what documentation will be needed for you to have the best chance of your offer being accepted and your loan approved.

For home buyers and real estate investors alike, purchasing a VA foreclosure is an excellent opportunity with discounted pricing, special loan considerations and better interest rates. By using caution such as home inspections and an experienced real estate agent, you could find the home of your dreams for many years to come or get a great start to a future in real estate investing.