VA Loans used for Foreclosures

[Steven Stepter]

What it be a smart idea to use a VA Certificate Loan on a foreclosure? Then, to later renovation to make a profit is the idea.

Any advice would help and be much appreciated.

[Ron S.]

While possible, it's not probable that you are going to be able to use a VA loan for an active foreclosure unless certain conditions are met. 1) that property better be in turnkey condition because neither the seller nor the servicer/lender are gonna put a dime into it. 2) VA is very stingy on allowable fees. Many fees are not payable by the buyer and the seller and the servicer/lender won't be too motivated to pay the fees unless everyone gets made whole and everyone feels like they are getting a deal. 3) You better be able to close the sale before the foreclosure because you won't have funds for an auction.