Cin, from a lender's perspective you are making a strong offer. However, there is also the seller bank's perspective that is in play here.
Just a note, there are certain fees (called non-allowables) that you as a veteran are not allowed to pay, which could impact your offer as they may affect the banks net proceeds.
As a seller(bank) the perspective is more about: "Will this close and what will be my net?" The non-allowables impact the seller/bank's net proceeds, so that is a consideration when comparing your offer with other non-VA offers.
The other concern with VA offers is the perception that VA appraisals never come in at value. This is probably more perception than reality but if you are bidding more than list price to be competitive, a reality in the Temecula market, having the appraisal come in at sales price could be a concern.
In the boom market we just experienced the sales price determined appraised value (we can see where that led us). In today's market, the appraisal very often determines sales price.
If you are represented by a good agent who understands VA loans you can be successful.
Good Luck!

VA Loans.... good loans, I have never had one not close..... However, there are seveal thousand dollars of non allowables in which seller pays on behalf of buyer so you really have to know or understand the seller and his or her situation. Not a real competitive loan in this market in this area. If you want to buy in Temecula, stay away from bank owned properties, You will be wasting your time. I closed a VA deal earlier this year and it was with a traditional sale.

Best of luck to you.
Tom Sicard
Broker DRE #01228604 http://www.TemeculaTom.com
Tom@TemeculaTom.com
951-440-8212

Cin: Picture yourself as a seller who needs to sell a property. Sellers are getting many different kinds of offers on their homes: Cash,, Conventional Financing, FHA Financing and VA Financing.

As a seller:
Are you going to take a cash offer that can close in 10 days, or are will you choose an offer where the buyer has to qualify for the loan and get an appraisal that will take weeks to get and then be obligated to pay their fees?

This is the reality that you are facing as a VA buyer, also:

Temecula is the most competitive market here in Southwest Riverside County. You may want to look at less competitive areas like Menifee, Lake Elsinore, or Hemet.

Good Luck!

Cin; Banks know that with a VA loan, there are costs that as a buyer, you are not allowed to pay (check with your lender about which ones those are) In addition, SOME sellers are under a misconception that VA appraisers will be harder on comps than conventional ones.. this is not true, but is a common misconception I have come across with sellers. and REO and short sale banks.

My "take" on why it has been so hard for you to compete, has more to do with the HUGE amount of offers coming in during the rush to beat the deadline for the $8k tax credit. Many of these offers are all cash offers ... some of them from investors. You just can't compete with that as a VA buyer. Take heart, though... Once November is mostly past, your opportunities should change as the buyers trying to take advantage of the $8k credit will have to have their escrows closed by the end of November. There will still be investors out there, but it should calm a bit. THEN with an experienced Realtor, you should get your chance... Good luck! Ellen Hayes. 20 year veteran Buyer's agent.

What priced home are you looking to do? Are you trying to go VA so you can use cash to fix the new home up?

If that is the case, have you looked into other options such as a 203k renovation loan? This type of loan allows for renovations to be included in the mortgage. Home must appraise for full amount of the loan of course and certified/licensed contractors must be used. Just another option to consider. FHA 203k is 3.5% down like a typical FHA loan.



Sean Dawes

Note: condition may be an issue on bank owned or otherwise distressed properties because VA's appraisal (condition) requirements are every bit as stringent as FHA's. The largest obstacle to overcome is that in most of these types of listing situations the seller (a bank for example) will refuse to make any repairs to meet appraisal requirements.

Kim

Disclaimer: I am a licensed real estate broker and property/casualty insurance agent in the State of Ohio, providing information and sharing experiences acquired over 15 years in the industries. I do not profess to be qualified to give advice in any other field, though will share opinions and information obtained during my course of work. It is always highly recommended that consumers seek counsel from a specialist in each area in which there is a question or concern.

Cin, It may take you a few extra houses to get an accepted offer but definitely not a problem. You in fact can easily go after bank owned, especially the houses that are known as flippers(where an investor buys homes and fixes them up a little and puts them back on market) and short sales. The advantage on the flippers is there is not competition for FHA because most go back on the market quickly and cannot qualify FHA.

There in fact are ways to up your odds. If you need any help. please don't hesitate to send me an email or call.

Kindest Regards,
Dianne Hicks
Tarbell, Realtors
(951) 514-5709
email di@di4homes.com