Thinking about purchasing a government-owned home in Virginia Beach, Virginia, or any other Virginia city? Here are some of the things you will want to know about government owned homes.

I have been asked many questions about the process of purchasing one these homes, so here are the basics of what you may need to know before purchasing a government-owned home.

 Q:  What is a government owned home?
  A:  Government owned homes are simply properties that have been acquired by a government entity such as  the VA (Veterans Administration) or HUD (Federal Housing Authority), better known as FHA. These homes are usually acquired due to a default situation. Since these are properties that were previously either insured or guaranteed by a government-backed mortgage loan, they are acquired from the foreclosing lender by the given government entity.

Q:    Do you need to be a veteran to purchase a home owned by the Veterans Administration?

 A:    No. Anyone who either has cash or qualifies for new financing is eligible to purchase these homes.

Q:   Will the government repair these VA-owned homes?

 A:    No, these homes are sold on an “AS IS” basis. Therefore, it is prudent to use due diligence when bidding on one of these homes.

 Q:    Is the first offer the accepted offer?
 A:   No, most of these homes are subject to a specified bidding period, with the highest qualified bidder at the close of the period selected as the winning bidder. 

 Q:    Is a deposit required in order to bid on a property?
  A:   Yes, a $1000 Earnest money deposit (certified funds) is required in order to bid.

Q:    Can an investor purchase these homes?
 A:   Yes. At the end of the bidding period, if no acceptable owner occupant bids were received,  the properties become open to investor bids to purchase.

 Q:   Can you do a walk-through inspection on the property even though they are being sold "as-is"?
  A:  Yes. Following required procedures, you may elect to turn on utilities to do a systems check and walk-through inspection prior to closing. 

Q:    Are there any special fees associated with purchasing a VA-owned home? 

  A:  Yes. VA vendee (owner financing) is available to qualified purchasers on VA-owned homes, but requires 2.25% fee to be paid in cash at closing, plus standard closing cost. (You do not need to be a veteran).

Q:    Where can I obtain the most recent listings of available properties?

    A:  Current Listings of government-owned homes are available through   both the MLS system as well  as directly from VA or HUD property manager websites.  The easiest way to obtain the last listings is to  register here to automatically receive the latest available listings via email.

Q:    Can I bid directly on a VA or HUD owned home?
  A:  No, you must bid through a qualified broker.