Several federal agencies have foreclosed properties to sell. One of them is the Department of Veterans Affairs (VA), which acquires foreclosed properties. Government foreclosure homes managed by Veteran’s Affairs are referred to as VA foreclosures.
Who can buy VA foreclosures? The answer is anyone. Buyers that are qualified, even non-Veterans will also receive benefit of a VA loan. This allows you to purchase these beautiful homes with no money down. All other listed homes for sale are available to anyone to purchase, including Veterans who wish to use their VA status eligibility.
Potential homebuyers looking to save money on their purchase might want to consider a foreclosed VA home. If a buyer is looking to obtain a VA home loan through the U.S. Department of Veterans Affairs, they may want to look into VA’s foreclosed properties.
Military veterans are just as likely as any other American to experience financial ups and downs — perhaps even more likely. Therefore, VA loans bring a certain amount of VA foreclosures into the housing marketplace.
But buyers need to be careful purchasing VA foreclosures. The VA does not make repairs on these foreclosed homes. Instead, the buyer is asked to sign a disclosure attesting that they are buying the home “as-is.” However, these government foreclosed homes can sell for as low as 50 percent of comparable market price. This, and the added potential benefit of no closing costs, can empower qualified homebuyers to develop instant equity at the sale.
One of the many benefits of buying VA foreclosures is that the VA covers the closing costs for qualified buyers. Also, similar to sales of certain Freddie Mac foreclosures, PMI (private mortgage insurance) is not required for veterans buying VA foreclosures. This can represent a savings of several hundred dollars a month to the average buyer.