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!!!
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
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
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?
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With no appraisal contingency
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
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.