Can VA Loans Be Used to Buy a Short Sale Property?
Home prices seem to change with the season, but they’re almost always more expensive than prospective buyers want them to be. One of the best ways to save money on the purchase price of a house is to limit your search to short-sale homes. For individuals hoping to buy homes with VA loans in Pueblo, buying short-sale homes can be a bit more challenging than buying a house listed with a real estate agent. It’s possible, but there are a few things you need to know before you start your search.
The House Must Be in Livable Condition
One of the most important qualifications for using VA loans in Pueblo is that the houses you’re looking at must be in livable condition. This means there can’t be anything severely with the structure or the components if you want to finance the purchase with a VA loan. Since most short-sale homes are sold as-is, you may have to pay for the repairs out-of-pocket before you can ever extend an offer to the seller. This is risky as you have no guarantee that the seller will accept your offer or that the deal won’t fall through at the last minute.
The Wait Time Will Be Longer
When you make an offer on a normal house, the seller will typically get back to you quickly. With short-sale homes, the seller may take more than a month to reach a decision. This means your home search will effectively be on pause until the seller accepts or rejects your offer. You could end up missing out on other, more suitable properties.
Short-Sale Homes Can Save You Thousands
Most short-sale homes are sold because the homeowner needs money quickly. This means they’re willing to sell the house for rock-bottom rates, often saving you thousands. This means you’ll borrow less which translates to much lower monthly payments on your loan.
The best way to find short-sale homes for sale is to work with a real estate agent that’s familiar with those types of properties. Keep in mind that you’ll also need an agent that’s familiar with VA loans in Pueblo. Otherwise, you’ll have a harder time finding homes that meet the VA’s qualifications right from the start.
Get Prequalified Today
Whether you’re looking at a short-sale home or want to buy a house that’s been on the market for a few months, you’ll need a way to finance the purchase. Get prequalified for VA loans in Pueblo today. Apply online or contact our loan representatives now.