The Short Answer About A VA Loan Foreclosure Purchase. Yes, it is possible to use a VA home loan to purchase a foreclosed home. However, the property must meet the VA’s minimum property requirements to qualify for a loan.
Why would a home seller not accept a VA loan?
Many sellers – and their real estate agents – don’t like VA loans because they believe these mortgages make it harder to close or more expensive for the seller. … Are less likely to close than other types of mortgages. Take ages to reach closing. Have appraisers who are slow and routinely undervalue homes.
What property Cannot be financed with a VA loan?
Vacant land is a no-no for VA financing. You can’t use a VA loan to purchase a plot of land, even if you plan to put a home on it one day. There would need to be a home in the immediate mix.
Can you use a VA loan on a short sale?
VA loans can be used to purchase short sale properties as long as VA guidelines are met. Short sales are the result of a delinquent loan, and the borrower and mortgage servicer have agreed to sell the home at a discount to avoid foreclosure proceedings.
Will VA finance a fixer upper?
If you’re eligible for a VA loan, you can purchase and repair a fixer-upper with a VA rehab or renovation loan.
What are the disadvantages of a VA loan?
5 Potential Disadvantages of a VA Loan
- You May Have Less Equity in Your Home. …
- VA Loans Cannot be Used to Purchase Vacation Homes or Investment Property. …
- Seller Resistance to VA Financing. …
- The Funding Fee is Higher for Subsequent Use. …
- Not All Lenders Offer – or Understand – VA Loans.
Who pays closing costs on VA loan?
When using a VA loan, the buyer, seller, and lender each pay different parts of the closing costs. The seller cannot pay more than 4% of the total home loan in closing costs. However, their portion of the closing costs includes the commissions for buyer and seller real estate agents.
Can I buy two houses with a VA loan?
The Bottom Line: Yes, You Can Buy Two Homes With A VA Loan
As such, buying a home with a VA loan for the purpose of making it a second home or investment property is allowed, but you can convert the property after you’ve lived there. You can also make rental income by living in one unit and renting out the others.
Can I buy a million dollar home with a VA loan?
VA borrowers in San Francisco, California, and Washington, D.C., for example, will find that zero-down-payment VA loans of one million dollars or more are indeed possible.
Can I use my VA loan to buy a house for my parents?
The short answer is no, VA loan benefits are not transferable to children. But that does not mean that a spouse or dependent can’t live in the home purchased with a VA loan, and it does not mean the home is not transferable to a spouse or dependent under the proper circumstances.
How many years after a short sale can you do a VA loan?
Typically, the waiting period to get a VA loan after a short sale is two years, if you have made late payments leading up to the short sale. If you have not made late mortgage payments, there is no waiting period.
What is the VA loan waiting period?
Under the new law, if you’re looking to refinance into a VA loan or go from one VA loan to another, there’s now a minimum waiting period of 210 days measured from the day you make your first payment on your existing loan to the closing date of your new one.
What is equity reserves on a VA loan?
Your VA loan equity reserve is the share of your property you actually own — or the home’s value minus your current VA loan balance. Your home equity reserves are continually growing in two ways: each time you make a mortgage payment, and over time as your home’s value increases.
Will VA pay for Home Improvements?
VA renovation loan
VA loans for alteration and repair let you buy or refinance a home and roll the cost of improvements into your mortgage. With this option, you’re not limited to homes that already meet the VA’s minimum property requirements. You can use the repair money to bring the home up to the VA’s standards.
Can you add a pool to a VA loan?
A pool loan is a personal loan — an unsecured loan that allows you to finance a swimming pool for your home. Since these are unsecured personal loans, not home loans, these aren’t available through the VA.
Can you use VA loan to buy land?
VA Land Loan Option 1: Simultaneous Purchase and Construction. According to VA guidelines, eligible borrowers can use the VA loan to purchase land and property together – not land alone.