I want to know the informations about Va Home Loan Foreclosure?

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Q. I plan to be in the market for my first home within a year in Northern, NJ. I have been looking in the paper and notice a bunch of adds for Foreclosures and loans requiring little money down (FHA HUD, ETC) Have any of you had experience buying Foreclosures. If so do you have any advice? Would you do it again. With regard to the loans, what are the advantages or disadvantages of using these loans as opposed to the traditional mortgages? Any info would be appreciated!

A. I purchased a home that had been a foreclosure and didn't have any problems. FHA HUD foreclosures are homes that had FHA or VA loans. Generally FHA/VA require lower down payments and have lower closing costs. However, the inspection to qualify for these loans is more strict, sometimes to the point of being ridiculous. Because of that, it can sometimes take longer to get an FHA or VA loan approved. In the meantime, the interest rate could go up. Generally, conventional loans can be approved more quickly. Whether it's FHA or conventional, if your down payment is less than 20%, you usually have to pay for mortgage insurance. With conventional loans it's called PMI (private mortgage insurance) and with FHA/VA it's called MIP. PMI eventually gets taken off, lowering your overall mortgage payment, when the value of your property vs. the value of the mortgage reach that magic 80% point. This generally happens as the value of your property goes up. This can happen very quickly with a foreclosed property. I only had to pay PMI for 3 years, so my house payment actually went down about $30. MIP works a bit differently though, but I had a conventional loan and I don't quite know how it's different, I just know that it is. Before you buy a foreclosure simply because of zero down, check with local real estate agents that cater to first time home buyers. There are a lot of programs that offer zero down to first time home buyers AND a reduced interest rate AND no PMI. Limitations may apply (under a certain amount, certain neighborhoods, certain credit ratings). It's possible that on a $100,000 home this could save you over $100. Please be aware that savings may vary and programs may or may not be offered in your local area. The advantage of these programs are that (for the most part) you can select ANY HOUSE that is for sale and not just foreclosures, etc. These are often bidden on by investors (in my personal, not professional opinion) who have a team of workers that do the work on a number of homes for them at lower prices than the average Joe can get them done. If you can do the work yourself or your cousin, uncle, brother, sister, aunt, friend or neighbor can and will do the work for you at a reasonable cost, then - the foreclosure may work for you. We were too lazy and too busy to do the work so we bought our first house from existing construction. Thinking - - - just thinking about getting major work done on a home makes me tired. Of course, maybe you'll be blessed with an opportunity to buy a home at a low price that needs little or no work, anything's possible. Again, these are opinions for professional advice you need face to face meeting with a real estate agent in your local area that knows you and your situation as well as your market area you're looking to purchase your home in.

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