Home Buying in 95628>Question Details

SK, Home Buyer in Orangevale, CA

Are VA loans even competive in a multiple offer situation right now due to low inventory in our area?

Asked by SK, Orangevale, CA Sat Apr 7, 2012

We are preapproved and working with an agent that seems to also think a VA offer isn't as strong and is encouraging us to wait to buy.

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17
Thank you everyone for your responses. They have been very helpful and encouraging. Happy Easter!
2 votes Thank Flag Link Sun Apr 8, 2012
There are some non-allowable fees in a VA transaction (fees that the veteran is not allowed to pay) like: transfer tax fee, termite fees and associated work charges, notary fees, homeowners association transfer fees, processing fee, underwriting fee, transaction coordination fees, and other fees. In other words a VA offer in competition with other buyers might be at disadvantage unless the offer is financially better. Best choice for VA transaction are houses in pristine condition (no/small pest work).
There are plenty of houses/condos on the market in very good condition. Choose wisely something reasonable in price that you can easily afford and try your best offer. Good luck with your search!
2 votes Thank Flag Link Sun Apr 8, 2012
VA offers are fine for certain properties. With multiple offers on new listings, just come in with your highest and best! Because you will be asking the seller to pay for closing costs, this means less to their pocket. So come in over asking to compensate and know that the appraiser will have your back!
1 vote Thank Flag Link Sun Apr 8, 2012
Your agent is right. Anytime you are in a competitive offer situation, price and buyer finances being equal it comes down to terms. That means an offer with conventional financing beats an offer with VA financing every time (save perhaps a longshot scenario where the seller is a vet and wants to cooperate with the buyer, but I certainly wouldn't count on that).

Best Regards,

Lance King/Owner-Managing Broker
lance@fixedrateproperties.com
415.722.5549
DRE# 01384425
1 vote Thank Flag Link Sun Apr 8, 2012
From the lending perspective, and personally, the money received it still green, what difference does it make?
Now, many times I have heard folks speak poorly of FHA and VA because of the low downpa yment required and somehow that makes for a less "quality" offer. It really boils down to FHA and VA have stricter property condition policies, so the seller may be cornered into a new roof, new paint, or other items before they can close.
In terms of VA taking longer, seems to me that is hogwash. It used to be a VA Appraisal took longer, but that seems to be a thing of the past, and even when they did take longer, it was maybe a week longer, not really impacting the total process.
My suggestion is find an agent that appreciates your service to our country, and understands part of the way you are COMPENSATED for your contribution to his freedom is through the VA Loan process. The VA loan should not only be appreciated, but moved to the front of the offer line, in my opinion.
Thank you for your service.
1 vote Thank Flag Link Sun Apr 8, 2012
Very well said. Thank you for your response.
Flag Sun Apr 8, 2012
Put down your offer and continue to look around, if it's a house you really want. If you find another house you can just retract the first offer and move on the next one. An offer of $200,000 (no strings) with a VA loan is as strong as a $200,000 FHA or conventional loan with no strings, the only difference might be a slightly longer time to close but that's all. Could it be that you are asking for a lot of closing costs (strings) that other offers are not? That would make a difference if your offer is the same amount as the others.
1 vote Thank Flag Link Sun Apr 8, 2012
Depends on your offer price, but it can make it a lot more difficult. VA loans didn't account for many sales in our area (also a hot market in Portland).
0 votes Thank Flag Link Tue Jun 17, 2014
Yes... If there are other competitive offers, The seller may want to avoid paying all the costs associated with a VA loan buyer.

If the property has been on the market for some time, it probably won't be an issue.

Thanks for the question. If I can help you, just let me know.

Danielle Sweet, ZipRealty, Inc.
RealtorĀ®, Licensed in CA, #01921756
dsweet@ziprealty.com
916.934.2120 | Fax: 877.625.2296
My profile: http://www.ziprealty.com/agent/dsweet
0 votes Thank Flag Link Tue Jun 17, 2014
some sellers prefer other methods of financing as sometimes you can run into conditions that need to be met prior to a VA loan funding. there are also fees for the seller in a VA loan that other financing methods do not charge to the seller.
0 votes Thank Flag Link Tue May 6, 2014
As a listing agent I am always happy to see the VA buyer win the sale.
0 votes Thank Flag Link Tue May 6, 2014
I have found he three keys to getting a VA offer accepted in a tight market are:
1) Select a property that requires no section 1 pest work as a VA Loan requires it and many sellers won't agree to do the work.
2) Have an experienced buyers agent who knows home values in the area and can write a competitive offer not overburdened with seller expense items.
3) Make sure the loan officer is highly knowledgeable and experienced in processing VA loans.
I just did one in 23 days, start to finish

Sellers/Listing agents should not shy away from a VA loan. Our veterans deserve to be able to use this benefit for their many sacrifices
0 votes Thank Flag Link Sun Nov 24, 2013
Hi SK - the strength of your offer depends on the experience of the person writing your contract and the experience of your lender in working with the VA program. Multiple offers shouldn't matter if the offer is written correctly and the Agent knows how to present it.
0 votes Thank Flag Link Sun Nov 24, 2013
VA loans are viable in todays market. Having a good experienced lender is the key and structuring your offer correctly. Contact the listing agent to insure the property will pass a pest inspection.
Just closed a VA purchase last week in 24 days. Come see me!
0 votes Thank Flag Link Tue Nov 19, 2013
It really depends on the strength of the buyer, the condition of the home, the lender, and the seller and listing agent. My sellers last fall did accept an offer from a VA buyer. We had multiple offers, the home was in good condition, the lender and other agent were experienced professionals and the seller had a son completing boot camp! So I would say don't give up, you never know what is around the corner. It is a tougher battle, but not impossible. Also remember it is only with the government loans (FHA and VA) that you can use an energy efficient mortgage which will help with some homes.

Good luck to you!
0 votes Thank Flag Link Thu Jun 6, 2013
VA loans are pretty strong and can close fast, as long as you are working with the right lender. The best way to get your offer accepted with VA is offer to prequalify with the seller's lender, and for them to show that you can close fast and without any problems. The seller does have to pay your closing costs which turns to less money for them, but if it can be compensated with a fast close then it's possible.
Web Reference: http://www.teamhybridre.com
0 votes Thank Flag Link Tue Apr 10, 2012
Hi SK,
Multiple offers are certainly a reality in our entry level market and VA isn't the most attractive to sellers so if you are getting turned away due to the investor competition then a new strategy might be in order. Pulling out ot the market all together isn't going to solve your problem of finding a place to live. I would suggest you expand your search and ask your agent to offer alternative solutions other than waiting. Sometimes you have to lower your expectations in order to get an offer accepted.This is where good counsel comes in to help you assess your needs/wants list and determine a proactive course of action.
0 votes Thank Flag Link Sun Apr 8, 2012
Depends on your area and price range. Try offering on some houses that are not going to multiple offers, to lower the competition from other buyers. Your wait could be a day a week or a month, new listings come to market everyday as others are sold, so have your agent jump on those new listings that fit your buying criteria. She is right. You need to have patience, then pick the one(s) to offer on, when it comes on the MLS.
0 votes Thank Flag Link Sat Apr 7, 2012
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
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