VA - Hidden Profits: What are VA Foreclosures?

Benefits of buying a VA Foreclosure

  • No money down Mortgages.
  • Instant equity.
  • No Mortgage Insurance Premium (MIP).
  • Mortgage qualifying flexibility.
  • All mortgage closing cost paid by VA.

VA Loans and Mortgages are available to you even if your not a veteran.

Understanding Veterans Administration Foreclosure Loan.

The U.S. Department of Veterans Affairs also offers foreclosure properties which can be purchased directly from the VA often well below market value and with a down payment amount as low as 2 percent for owner-occupants. Investors may be required to pay up to 10 percent of the purchase price as a down payment. This is because the VA guarantees home loans and often ends up owning the property if the veteran defaults. If you are interested in purchasing a VA foreclosure, call 1-800-827-1000 to request a current listing.

Homes designated as VA Foreclosures homes are available for civilian Veteran's Home loans (mortgages). This means that the past purchaser was a Veteran of one of the branches of the United States Military and that the previous mortgage was made possible by the Federal Government who guaranteed the loan. By guaranteeing the mortgage, the Department of Veterans Affairs (VA) agrees to repay the Lender for all money lost by the lender on the mortgage in case the property is foreclosed on. It's a good deal for the Lender as their investment is 100% guaranteed.

Thousands of VA foreclosures occur each month. The Federal Government protects itself by charging each buyer of a VA mortgage a Funding Fee. The Funding Fee is a percentage of the mortgage amount and is helpful in several ways. Because the Funding Fee is charged the Veterans Administration can allow the Veteran to purchase a house with no money down. By purchasing a VA foreclosure from the list of Veterans Administration you can proceed with the loan as though you are a Veteran and buy many of these properties with no money down and without mortgage insurance.

More On This Subject

Contact Me