Okay, I have a young couple. He is recently out of the service and has his VA paperwork. I did send him to get qualified and he has the pre-approval letter for 95K. He wants a bank foreclosure house that is listed at 92,400. He has earnest money, but doesn't have money for the closing costs. 1st question: will va let him purchase a property that doesn't have a sellers disclosure "bank foreclosure". 2nd question: have you ever heard of a bank paying closing costs on a foreclosure. This house has been on market less than 50 days and is priced very well, only built in 2003 and appears to only need carpets shampoo'd and some fresh paint where they knicked the pain getting their stuff out. My guy only wants to offer 90k and wants them to pay closing costs. I told him that I didn't think that it would fly, but that we could submit an offer and see what they say. Any answers, ideas????

Live and learn I suppose, I have no idea myself. I'd gander a guess but that won't help you. If you can't wait for an answer here, then talk to your favorite lender or titrle co closer who may know better.

All my clients have either leased or done traditional financing so far.

Banks tend to simply look at the net they will be receiveing when evaluating an offer. So if your client wants to offer $90k with the seller paying $2k in closing costs, that would be the same as a $88k offer to the bank. I would check with his lender regarding the disclosure issue, but if the property is in at least average condition, it may not be a problem.

[QUOTE]Originally posted by karenwilkers:
1st question: will va let him purchase a property that doesn't have a sellers disclosure "bank foreclosure".

1st answer: Yep, seller's disclosures are not a requirement that I'm aware of.

2nd question: have you ever heard of a bank paying closing costs on a foreclosure.

2nd answer: Yep, typically any seller can pay up to ALL of your buyer's VA closing costs including pre-paids and he can buy a house for 0 cash out of his pocket.

Old timers used to call this kind of deal a "VA No No" VA guaranteed loan, no down payment, no closing costs to buyer.

Write up the offer and see what happens.

Ditto to what jim lee said. VA no no is a go go.
The appraisal might be a little more detailed and can cause problems at times. Hopefully not with this newer home.
p.s. there is a VA funding fee the VA requires. It is less for first time users, more after. Take your buyer to a lender to figure the amount of closing cost needed.
Start writing that contract!

Thank you all!!!

VA gets complicated. you should consult a loan officer who understands the program better