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Sondra, Home Buyer in Canon City, CO

we have been accepted for a va loan. how do we find out if the home qulafies for a vendee va loan.?

Asked by Sondra, Canon City, CO Sat Nov 19, 2011

We only had a few days to close, Wells Fargo Bank backed out because the property assesed in the fair to average category. The house needs $2,700 worth of repairs before closing, they wanted us to repair on a house we don't even own yet, so we sent in a revised bid that would lower the price of the house...I was informed va acquired bids on repairs and decided to do repairs instead??? It is my understanding va does not repair?...I have no idea whats going on, but heard about the va vendee and am having trouble finding out if the home would qualify for vendee loan. we are still locked in on the loan and are trying to find other financing. have talked to a broker for bank of america, she said she does not do vendee loans, but would try our loan and property assement with bank of america. My husband is a veteran should we see if she can get the loan we currently have approved thru bank of america as a va quaranteed loan or try to get a vendee loan?We are so confused and dissapointed....

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Vendee loans are offered only to purchase VA repos with no appraisal so any needed repairs would be left up to you after close. If the home is a VA repo then the Vendee could be an option. Otherwise you will have to make the repairs yourself, have the appraiser reinspect the property and sign off on those repairs so you can close. Either option you will negotiate not only a lower price but an extension of the close date. The other option is walk and start over this time a little wiser. I would not advise an FHA 203k streamline rehab loan for $2700 in repairs, much cheaper in this case to just to walk away.

See the link below for info on the Vendee...
0 votes Thank Flag Link Sat Nov 19, 2011
Very rare today can a retail buyer, but a home that needs significant repairs. Cosmetics are one thing, structural or functional repairs are another. VA is stricter than most.
We need to find you a home in good repair vs one that needs work.
There is the FHA 203k loans which allows for repairs, but these are much tougher to accomplish.

Is the property you were buying a foreclosure or can the seller do repairs?
Never do repairs on a house you don't own in hopes of getting a loan. Good way to loose money.

If you're not already working with a realtor, give me a call and we'll see if we can't get you moving in the right direction.
0 votes Thank Flag Link Sat Nov 19, 2011
Bruce Lynn, Real Estate Pro in Coppell, TX
MVP'08
Contact
Most realtors know from listings a spefic home accepts a VA loan since it would normally say only conventional loans, for example. That means repairs wouldn't be acceptable by the VA. VA loans require the house to be quite good as far as condition with minor repairs needed and they check the repairs are done. Conventional loans are more forgiving as far as condition. However, since your husand is a Veteran it's advisable to go with a VA loan.
0 votes Thank Flag Link Sat Nov 19, 2011
The Sellers should be responsible for repairs. On VA loans, repairs must be done prior to granting the loan for closing. Maybe you can find a house which needs fewer repairs. There are lots of houses on the market. Good Luck! Linda M. Delgado; Virginia Cook, Realtors
0 votes Thank Flag Link Sat Nov 19, 2011
VA is in place to protect you, they are not a lender but a lender quarantee. In other words, if you default, they pay back a large portion of your loan to the bank. Having said that, the seller is responsible for doing the repairs as required by the VA, not you. One option would be to increase the sale price of the home to cover the repairs (if it will appraise for the higher price) and have the seller do them. The repairs need to be done prior to close and the appraiser will have to come out and reappraise to confirm completion.

If the seller does not want to do it, then mnove on to another house with a local lender that is used to VA loans and the process.. One that can guide you through the hoops. I know youn don't want to hear that, but never go into a negotiation you are not ready to walk away from.

Also, GET AN AGENT WHO WORKS A LOT OF VA LOANS.

Best of luck
helen
0 votes Thank Flag Link Sat Nov 19, 2011
The big banks (Wells, Chase, BofA,etc.) are great for doing normal banking but horrible for closing mortgages.
I have had deals fall through with my clients on the day of closing with big banks then my lender has been able to get them approved and closed in less than 3 weeks (that included having to order a new appraisal). What kind of repairs does the house need?
Ben Fluno
Keller Williams Realty
469-878-2235
0 votes Thank Flag Link Sat Nov 19, 2011
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