How to Buy a VA Foreclosure Home

You may already know that foreclosures are an opportunity for buyers to purchase a home below market value. If you are looking for even greater savings, consider a VA foreclosure. VA foreclosures are homes that United States veterans previously owned, having used their benefits to buy the properties. In the event of default, the Department of Veterans Affairs reclaims these properties, selling to the public. If you decide to purchase a foreclosure, the VA pays closing costs and you do not need Private Mortgage Insurance (PMI). The VA even offers financing.

Contact a real estate agent. An agent can help you locate VA foreclosures, schedule a time to view the properties and submit offers.

Locate VA foreclosures. Your real estate agent has access to the Multiple Listing Service (MLS), which includes local VA foreclosures. Some MLS systems allow the public to search properties.

Go to to view local VA foreclosures. This website is the official search engine for VA properties. You will need to enter your state, city, zip code and features you seek, such as the number of bedrooms or bathrooms. If you have any questions, call customer service at 866-781-0029.

Obtain a pre-qualification for financing. You can contact the lender of your choice or apply for financing through the VA. The VA Vendee financing program is offered to veterans and non-veterans, providing the opportunity to secure financing with zero percent down. For more information, contact a representative at 800-816-4346.

Make an offer. Similar to buying a seller-owned property, you will need to make the offer to the listing agent. An earnest deposit of $500 is required. If your offer is not accepted, you will receive a refund. Remember, all VA foreclosures are sold as-is. If you are submitting an offer on a new listing during the Simultaneous Offer Period, which is 10 days after the home is listed, all offers will be reviewed as if submitted at the same time.

Wait for a response. If the offer is not accepted, the listing agent may respond with a counteroffer. You can either counter the counteroffer, accept or reject. If an offer is accepted, the agent will schedule a closing date.