Financing in Miami>Question Details

Michael Gonz…, Real Estate Pro in Coral Gables, FL

Why is it that VA loans no one wants to work with them/?

Asked by Michael Gonzalez, Coral Gables, FL Wed May 1, 2013

I have a client approved for up to 250k and no agent wants to deal with this type of Loan?

0 votes Share Flag Financing in Miami

Help the community by answering this question:


There are so many cash buyers and conventional buyers which are the most preferable to all sellers and REO owners that other financing like FHA and VA are extremely hard to push.
Banks do not want the headache of financing and possible problems that might come with it. Cash transaction is easy and fast. Financing can always fall through and one has to start over. Cash is cash, it never fails. Since on every listing these days we are getting over 20 offers, cash and 20% down are always chosen first. FHA and VA are at the end of the line. This is why agent do not want to work for months with a client, drive around doing hundred of miles, spend money for gas, spend hours browsing for properties, preparing and submitting contracts etc etc because at the end of the day, it's obvious that the cash offer is going to be picked. Sad but true.

Also, VA requirements are very strict, house has to be in perfect condition and also seller must contribute to closing cost, which on current market doesn't happen anymore.
1 vote Thank Flag Link Wed May 1, 2013
So your saying they just want the easy money and not to have to help vetrans?
Flag Mon Oct 6, 2014
The VA does a better job of protecting the Veterans:
Some of the Closing Costs that are traditionally the responsibility of the Buyer, fall to the Seller:
It can only be a few hindred, but when we're in a Seller's Market, the Sellers can be choosey.
Also, with 100% loan, they are harder to qualify for and could fail in the middle of the Escrow: This aspect would favor a CASH offer, which generally won't fail.
And, VA Inspections and Appraisal can be more stringent.
Veterans appreciate these things; Sellers and Lenders do not.
1 vote Thank Flag Link Wed May 1, 2013
contact us if we can assist with anything.

VA Mortgage Hub
Florida VA Loans - 7 days a week
Ph: 904-385-3988
0 votes Thank Flag Link Mon Nov 9, 2015
Thing thing with VA loans is they have their own set of rules and guidelines for the selected property. There are many things the buyer can run into. But a good agent together with a good lender can close on a VA loan if there are no major issues with the home. I personal financed my first property through a VA loan and like to help other Veterans achieve their dream of homeownership!
0 votes Thank Flag Link Sat Jun 1, 2013
I worked with VA buyers in the past, and the buyers bought good properties.
However, the property has to be selected carefully - a single family or a townhome.
There are practically no condos that are available for VA buyers.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
0 votes Thank Flag Link Thu May 2, 2013
When you posted your first question on Trulia about just getting your license and working part time, I asked you to contact me for advice. You did emailed me, but wrote me that if you would need assistance in the future you will let me know. My mistake was not to email you back, I apologize, I should have warned you about how difficult (nearly impossible) it has become working with a Buyer needing financing in today's market. You have heard it from others, so here are my 2 cents: Unless you are only working the higher end of the market, please refer your Buyers in need of financing to a FULL time agent, someone who is not very busy catering to all-cash investors and willing to work with your Buyer giving his/her all, otherwise they will fail in their attempt as well. I am not that agent, I am being 100% honest and hope that anybody that contacts you or you contact be truthful as well.
0 votes Thank Flag Link Wed May 1, 2013
For the same reason some choose to hire folks to lay a 20x20 patio rather than do it themselves.
The outcome is more predictable.
For the same reason folks hire an attorney when they go to court.
The outcome is more predictable.
For the same reason I go to the Dunedin Brewery for a Pale Ale rather than brew the ale myself.
The outcome is much more predictable.
The seller and their agent understands the remifications regarding cost, liability and residual consequences involved in both VA and FHA backed mortgages.
An experienced agent will know how to navigate a buyer past the non-competive nature of their offer to positon the purchase offer to be more palpable to the seller. The results are more predictable when you work with an expereinced professional.
As a professional, you simply need to get a few VA/FHA transactions under you belt and you too will see the light.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
0 votes Thank Flag Link Wed May 1, 2013

The reality is that the market is very competitive regardless of what type of loan you're approved for and for the most part VA loans are very stringent in relation to their guidelines especially for defects and repairs on a house. If you have any additional questions you're welcome to call me or email me.

Alberto Baca
The Keyes Company
0 votes Thank Flag Link Wed May 1, 2013
I agree that it's probably due to the migration from a buyer's to a seller's market in a lot of areas, and the stigma that a VA loan is more difficult to close with a lot more red tape.

It's all relative to the competition of who is buying homes right now, and unfortunately VA and FHA buyers are at the bottom of the totem pole right now.

I would advise you to be patient and also maybe to try to appeal towards a seller's human side in submitting your client's offers. Have them write a personal letter to the sellers as to why they should accept their offer and include it with the purchase contract. Include family pictures and the fact that your buyer heroically served our country. You're probably going to have to wait things out or get creative to get your buyer into a home.

Hope this helps!
0 votes Thank Flag Link Wed May 1, 2013
Meg's right. The basic problem is that you're fighting to get your offer accepted, and the competition is bringing cash to the table.
0 votes Thank Flag Link Wed May 1, 2013
thanks for your help, I just recently passed my state test about a month back and i am still trying to figure out everything about real estate. If there is any other information that you might have that would help me in understanding VA loans it would be greatly apprecitated.!
0 votes Thank Flag Link Wed May 1, 2013 786.219.8681 let's talk about it DGCRE, Corp.
0 votes Thank Flag Link Wed May 1, 2013
There is an old stigma still pervasive in the market that VA financing is "bad" or "difficult" yet from my experience VA appraisal and inspection guidelines are no more stringent than FHA or Conventional these days. Also, there are expenses that VA buyers cannot pay, so sellers have to absorb them - but it's all relative. If the property meets the guidelines a seller should welcome the business. Agents and sellers of regular properties who don't like VA buyers simply don't understand VA loans, or they don't know the contracts well enough to know how to negotiate them, or they just don't want to bother. But with education, persistence and strategy it can be done. Keep the faith and Good luck with your customer.
0 votes Thank Flag Link Wed May 1, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2016 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer