Hi RB,

That is right the VA loan is very hard get a transaction be honest with you
the I myself is VA loan when I bought my first house 1984 that time for
$ 116,000. I remembered that time. When the market is slow you may try to
offer on the property, but when it sellers market it hard to compete. The listing is trying to get as much as
possible for the sellers. On the VA loan the seller pay a lot discount point plus other expenses that is why.

My most recent transaction was a VA loan and we had to jump through a lot of hoops in order to get the loan funded. Additionally, we needed two home inspections and the buyer needed to complete a few minor repairs before funding and subsequently close of escrow. Although the buyers had to meet the requirements of the VA loan, it was the home they wanted.

Hi Robert,
Robert what you say about FHA loans is MOSTLY true, I have never checked the box on the purchase contract and I have had it go both ways, mostly they don't, but I have had situations where we were about to close and it came back from the under writer that section 1 clearance had to be done before they would fund the loan, need less to say it took a lot of fast handling to bring it off.
Regards,
Allyson
408-705-6578
allyson@homesbyallyson.com
DRE#01397256

Yes sellers are favoring conventional loans because VA loans require a termite clearance and VA appraisers can ask for small health and safety items to be fixed prior to close. Additionally, sellers have to pay certain VA closing costs not allowed to be paid by the VA borrower.

However it is NOT true that FHA loans require a section 1 termite clearance. If your Realtor does not check the box in the purchase contract for a pest inspection, the FHA lender will NOT require any termite report or clearance. This misconception by many sellers that FHA still requires a termite clearance is hurting a lot of well qualified buyers making FHA offers.

Check out my blog totally dedicated to VA loans at http://www.socalvaloans.com

Hi RB,
Yes and no, let me explain as I have closed VA loans on REO'S and Short Sales. First I am assuming that you are looking at the low end ( reo's/short sales) correct? If so the main problem is section 1 clearance ( Termite damage) and any repairs needed to bring the home up to their standards, not how long the loan process is ( Although it does play a part in their consideration). On reo's the bank most usually will not do section 1 work they may credit you the money but I have not seen 1 bank that will have the work done. ( there are ways around this ). The same is true for Short Sales as the seller has no money to do repairs ( again there are ways around this). It is more difficult to purchase, but NOT impossible you just need to find the right property and expect to bid a bit higher than anyone else to even be considered ( on the low end almost ALL the REO's and Short Sales have multiple offers as of this writing). FHA loans have some similar requirements as well.
If you have any additional questions feel free to email me or call I would be happy to assist you.

Regards,
Allyson
408-705-6578
allyson@homesbyallyson.com
DRE# 01397256