VA Home Foreclosure: The Basics

VA Home Foreclosure: The Basics
05-19-08

VA Home Foreclosure homes are homes that were once financed to a veteran of the U.S. Military or qualified individual through a special program referred to as VA Home Loan Program. VA Home Loan Program is a guaranteed loan by the Federal Government. In simple terms, the Department Of Veterans Affairs makes an agreement with the lender to pay the lender monies lost due to a foreclosure. However, like any loan agreement it is the borrower's responsibility to pay and apply with loan terms. If the loan agreement is breached by its borrower the home will be repossessed and foreclosed upon making the VA Home Foreclosure available to the public. Though the loan is guaranteed this guarantee typically benefits the lender not the borrower.

Home Buyers and new Investors often misinterpret the meaning of VA Home Foreclosure. We often assume that only veterans may purchase VA Home foreclosure properties. Nevertheless, this is not the case. Anyone can purchase a VA Home Foreclosure property. Not only can home buyers and or Investors purchase VA foreclosed properties, but qualified individuals can also enjoy the benefits of a VA Home Loan Program. Another rarely known benefit is that the purchaser of this particular home does not have to occupy the residence. This is a wonderful benefit. The new home buyer or Investor can resale the property, or rent the property out unlike the original Home Buyer who had to occupy the residence. Due to the home being foreclosed this particular restriction no longer applies. This is clearly an advantage for an Investor.

There are several other benefits when purchasing a VA Home Foreclosure: Historically Low Rates- it's no mystery that the real estate market is at an all time low. Of course, if the market is low than rates are high. VA Home Loans offer its clients lower than norm rates and work with clients that are suffering from poor credit or no credit. First time home buyers and investors alike who suffer from poor credit or no credit may not be qualified for conventional loans that usually offer the best rates. Their only options are Sub Prime Loans or special programs offered through the mortgage company.

Zero Down Loan Options- Qualified home buyers and or investors may have the option to utilize a zero down loan program. Most first time Home Buyers or Investors do not have thousands of dollars saved for a down payment on a house. This program may work best in such situation.

Charitable Contributions- Qualified Home Buyers and or Investors may receive charitable contributions from such places as Ameridream Foundation. Regardless of your financial situation, Ameridream Foundation may contribute funds towards closing cost.

It is important to explore all options and have financing approved previous to seeking property. There is no denying the possibilities when purchasing a VA Home Foreclosure Property. As with any investment it is important to educate yourself on all your options, state Laws, and programs available to you.

The best place to research information is via the Internet. The internet has endless information on foreclosure and investing in foreclosure properties.

Mark E. Moebius
Miljonair Homes
Custom home builder St. Louis
3451 St. Albans Rd.
St. Albans, MO 63073
636.300.9000