Financing in 33144>Question Details

Bryan Cunnin…, Home Buyer in Miami, FL


Asked by Bryan Cunningham, Miami, FL Thu Apr 18, 2013



1 vote Share Flag Financing in 33144

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Great question! I am closing one for a client in the next week, the 3rd in 8 mos approx. And while they have their own idiosyncracies, they are closeable once you have a very good, experienced team of Real Estate Broker & Mortgage Banker, like mine. Be aware there are other market forces we don't have control over, like very low inventory levels, high buyer pool demand and in So Fla over 70% - 85% of all transactions for several years have been cash buyers, very hard to compete with when you're financing anyway, FHA or VA or even Conventional. Then there's property condition which the VA have higher standards for their borrowers/loans over & above FHA & CONV. Most all condos are NOT VA/FHA approved in So Fla anymore, so only fee simple townhomes w/HOA only and single family homes are possible candidates and then its back to their physical and title conditions. Then there's the borrower (you possibly) your credit, income, wants, needs and housing criteria, like where? when? what? why? how? price range? Trust this helps and makes sense. And If you need anything further please feel free to call me during normal business hours at the contact info in our website link below. And please also send your email address and phone number, I'll be excited to help you with all your real estate needs and honored for the business opportunities.
0 votes Thank Flag Link Fri Apr 19, 2013
Okay, let me start by saying I have had successful VA closings and, as a disabled Vet myself, have a VA loan for my home. The problem is that the VA is a lumbering government agency that moves slow and is inflexible. If there's anything unusual about a deal, they often blow it by denying the loan because "it says right here, on line 2,341 that xyz cannot exist". They have failed to keep up with the times and are nearly impossible when dealing with distressed properties. Take, for example, a short sale. Typically the seller in a short sale has no money, so they cannot pay for the things the VA requires them to pay for(minor repairs, termite inspection and treatment, etc). Often the bank refuses to pay because it is a bank, and that's what they do. That gets even worse when the buyer, recognizing that they are getting a great deal, offers to pay for them and the VA says no, they will not allow the buyer to pay. Ridiculous. The VA needs to become more nimble so that it can better serve the Veterans it is supposed to be helping.
As for Realtors and sellers who refuse to take VA buyer's offers...that's nothing new, it costs the seller more (typically) to close a VA loan, so if they have an option, they will typically choose the cheaper option.
And, as a 27 year member of USAA, and holder of a USAA VA loan, don't even get me started about them!!!
2 votes Thank Flag Link Fri Apr 19, 2013
As Jim stated ACCURATELY (TU), in this market the question is not 'Why are VA and FHA's loans rejected?" BUT...Why are the other options more attractive to HOME SELLERS?
Unless you been living in a cave, it is easy to identify Chase, Bank of America and Wells Fargo as the worst and nearly most predatory institutions in the world, yet folks continue to use them. Why? Becuase they give the appearance of being easy and conveinent.
If VA and FHA, as Jim Olive ACCURATELY described, woke up from their buracratic melaize, your situation can change. For a homeonwer, entering into a purchase agreement with VA or FHA backing is like kissing a chain saw. Folks prefer easy and conveneient. VA is not either of those.
Now, there is a solution. This is working with a real estate professional who is not spewing the non-sense that EVERYONE else is stupid. You ARE at a disadvantage. There are creative and construview ways to address your situation.
If I were in your shoes, I'd give Jim a call and get onboard with how to position your purchase offers to get a different response. I have a good feeling Jim knows the best approach is through staging the situation to produce a true win/win.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
1 vote Thank Flag Link Fri Apr 19, 2013
You are Absolutly right, I married a woman that is self supporting as a 911 dispatcher. The VA insist that her debt be counted as mine even though , I am not legally liable for her debt prior to marriage
0 votes Thank Flag Link Fri Sep 19, 2014
Good Afternoon Mr. Cunningham,

I was speaking with a loan officer I have worked with for quite some time, and depending on your credit score, etc, you may be able to get a 95% financed loan. Using your VA benefit is good idea but there may be additional options for you to consider. As I can see you are here in Miami, as is the loan officer I would suggest you reach out to and he would gladly provide you with all of your options depending on your indidivual buyer needs. Please feel free to send me an email and I will forward his contact information to you you.

Lila Lopez, CRS, CDPE, e-Pro
RE/MAX Advance Realty
0 votes Thank Flag Link Fri Apr 19, 2013

Regarding your comment: Sellers that won't accept a qualified VA offer are quite frankly; stupid and so are the agents that advise them.

I don't know how the market is looking in Cali, but here is South Florida, the Seller on a nicely priced property typically receives multiple cash offers within the first week in the market. Most of these cash offers are at full or above asking price, minimum contingencies if any and less than 30 days to close.

Will you still say that is a stupid decision to choose the all cash offer?
0 votes Thank Flag Link Fri Apr 19, 2013
That's a typical deflection where you pull out of the air 1 circumstance and act as if all are like that. I know you are not saying that every property sells for cash are you? The person asking the question has been unable to acquire ANY property and states he's being told they won't accept his VA offer. You know as well as I do that it's due to ignorance and not cash offers.
Flag Sat Apr 20, 2013
It is no hard to use a VA LOAN. The hard is the people or professional even seller which don't know the advantages to deal with this kind of loans. Property is something that need to be sharp to pass a VA LOAN. If property physical condition is not good them, owner need to repair or do some repair to pass the VA LOAN. Sir, please call me I'm doing Listing that maybe qualify for your VA Loan.

Thanks you very much to support our Liberty and Justice for All because freedom is not for free.
0 votes Thank Flag Link Fri Apr 19, 2013
I believe in Today's market every thing sells above appraise value, in another word appraised values have not caught up with market, therefore the seller's prefer cash or conventional financing
With no appraisal contingency
Mali Shahbazian
0 votes Thank Flag Link Fri Apr 19, 2013
Good Morning Mr. Cunningham,

The perception by some realtors is that VA loans won't be accepted by sellers and many stay away from assisting buyers that are looking to purchase using VA benefits. This is due to a lack of understanding of how the program works. I can attest to having closed many VA loans the last of which was just a couple of weeks ago. When working with buyers using their VA loan benefits, my first suggestion is to contact USAA to get their loan preapproval, and with that in hand they are ready to go, whether they are purchasing getting 100% financing or placing a downpayment, it can definitely be done. The only time I have ever encountered a problem with VA financing is if the property in question is in unlivable condition, but otherwise, the appraisal's are done the same, the loan process is the same, nothing vastly different from a conventional or FHA. In the 20 plus years I have been in this industry, I have seen "strong" 20% conventional buyers not be able to get their financing, which FHA or VA do, the strenght of the loan is not the type of loan but the true strenght of the buyer applying for the loan.

With this said there are seller hesistant to accept offers that will have VA financing, but they have those same hesitancies on FHA, you will want to search for a Realtor that can recognize the strength in you their client and advocate for why your offer, if properly reflective of market pricing would be the right offer to proceed with. Good luck with your search. Should you have any further questions, please feel free to contact me.

Lila Lopez CRS, CDPE, e-Pro
RE/MAX Advance Realty
0 votes Thank Flag Link Fri Apr 19, 2013
It's not a sham by the government, it's a product of lazy, uneducated RE agents who improperly advise their clients about what offers to accept. I have said it 100 times that I believe agents are completely misguided and not doing their jobs when they don't tell sellers to jump at offers with VA and FHA financing. VA and FHA are some of the easiest to qualify for and if the goal is to attract offers that can actually close, then they are missing the boat by ignoring these.

Sellers that won't accept a qualified VA offer are quite frankly; stupid and so are the agents that advise them.

Keep trying and find a good buyers agent that understands the strengths of VA financing and can convey your qualifications properly with your offer.
0 votes Thank Flag Link Thu Apr 18, 2013
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