The buyer is pre-qualified for a 100% VA loan at 'more than' the asking price of this home but he does not have the cash to make up the difference what it will appraise for (will be $20K less) and the selling price.
They can also look at a USDA loan, as it allows closing costs to be rolled in up to appraised value - http://www.UsdaMortgageSource.com
Florida VA Home Loans, 7 days week. PH: (904) 385-3988
VA Mortgage Loans are available today for both honorably discharged Vets and active duty military personnel. Here are some of the great features of this fantastic program:
WHAT ARE THE BENEFITS?
- Up to 100% financing, with no down required.
- No monthly mortgage insurance added to your payment.
- More lenient credit qualifying standards than other types of mortgage loans.
- Low rates compared to other loan programs.
WHAT WILL YOU NEED TO BE APPROVED?
-Order your Certificate of Eligibility. A Florida VA loan lender can order your COE quickly for you, or you can go directly to the VA to obtain a copy. If discharged, you will need your DD214. The next step is to get pre-approved with an experienced VA lender.
-2 years tax returns
-Last 2 paycheck stubs
-Last two bank account statements
-600+ credit score (typically 640 is what most lenders look for)
-Same line of work for the past two years
-Money for closing costs
Please contact me and I will put you in touch with the best VA lender!!!
Andrew 954-394-7185 (prefer text first)
Bank of America
Faith Home Loans
Property will not appraise for the agreed to purchase price, so there is a short fall for the buyer. Buyer would have to come up with $20K to make up the difference bewteen the selling price and the appraised value. uyer may have 10K, not 20K. That's why buyer needs to write finance the difference to get to the agreed to selling price. Understand? So with this scenario explained...is it doable without seller concessions?
And by the way, for most lenders it doesn't matter whether a person is a first time home buyer or has owned homes before. The rules and qualifications are all the same.
Faith Home Loans
I've had VA buyers actually get cash back at closing (because they put up an earnest deposit of $500).
Congratulations on becoming a homeowner.
Also visit their page at "Steps to a VA Loan" http://www.vba.va.gov/ro/cleveland/steps_to_va_loan.htm#Closing the Sale - They have a very useful worksheet here that you can use for the qualifying portion of your loan.