I am well versed with VA loans and I really think that you need an aggressive realtor who has worked with getting VA loans accepted. Please feel free to email privately at email@example.com and I can explain in more clear detail.
Yes trying to use your VA is a bit more difficult than a cash offer. I have been helping veterans use their benefits since 1986. It requires a broker or agent who knows which sellers are going to favor your financing. It requires someone who knows what properties will even qualify under VA terms. It also requires someone who knows how to write a complete offer that will make it in front of the seller. Will you need to submit offers on a number of properties? yes just as everyone else in this market. Can I help you? yes I can, just give me a call.
I feel your pain, unfortunately that's how the market is right now. I am active duty Navy and also a Realtor here in San Diego, so most of my clients are military using VA loans. I would love to meet with you to see if I can assist you with your home buying process, sometimes it's the language in the offer that causes some offers to be rejected. You may contact me directly or visit my website militaryhomesinsandiego.com
Keller Williams Realty
Larry Hodel, RealtorÂ®, RDCPro Certified, SFR Certified, HAFA Certified
DRE Lic #01442093
Let's chat about the Appraisal Fix in play that must be anticipated and planned for
For years I was key in writing product specification and requirements for medical equipment and reagent manufactures and for the service providers who used the equipment. When the RFQ was released, the outcome was certain.
The morale of the story is if you control the rules, you control the outcome!
You must be aware, when a bank grants a mortgage, they still have the same objective that was in place in 2004. That objective is to sell the mortgage to an investor. Don't forget that.
When a bank submits an order for an appraisal, the order WILL stipulate what the appraiser can use for comparables. They often require four(4) types of comparables and impose time limits and additional restricted. Each bank has a different game in play so the 'orders' are not standardized. (That just might be a clue)
This appraisal is then often presented to the banks Appriasal Review Board to insure it meets INVESTOR PARAMETERS! Investors have a predictable pattern of wanting to acquire assets at 60% of value. The house is the securing collateral
If the review board rejects the appraisal, they request additional modified data from the appraiser to force this into conformance. If this happens too often the appraiser will spend a season in the isolation of appraiser purgatory, until the lesson is learned.
The ORDER submitted to the apprising company controls the outcome. The FIX is in. Be aware, if one already know this is the situation, you can make it work to your advantage. If you choose to ignore this reality, your seller takes it on the chin EVERY TIME!
Let me assure you, every citizens honors the service to their country that every Veteran has made. The benefits are well deserved. The economic reality, however, means those purchasing with a VA or FHA loan are at a real disadvantage. I wish it was not so.
Yes, there should be outrage.
But folks continue to steam into the doors of Bank of America, Citi, Chase, Wells Fargo and Never Ever Bank of Clearwater Florida, and experience why they are "F" graded in regards to investment in the community in which they exist. Where's the outrage?
Best of success in acquiring your new home,
Annette Lawrence, Broker/Associate
Remax Realtec Group
I don't know how much experience you have but I've been in this industry since 1989. I've seen the rollercoaster ride of property valuations. Appraisals are based on market values, not some conspiracy to "FIX" appraisal values.
To suggest that a qualified Veteran shouldn't use his HARD-EARNED benefit to buy a home because the appraisal might come in short is absurd. Values come in low on ALL kinds of transactions in this market whether they be Conventional, FHA or VA. And values ALSO come in right on the money on Conventional, FHA and VA appraisals, too.
And to further suggest that a Buyer take the risk of signing a sales agreement and spend the money on applying for the loan and Home Inspections and what not WITHOUT AN APPRAISAL CONTINGENCY is frankly UNETHICAL!
Markets are made up of Buyers and Sellers with incomplete information. To purchase and sell these Buyers and Sellers must step in to the marketplace and take the accordant risk associated with the activity. Both parties therefore have to put their best feet forward and jump in so as to accomplish their individual goals of purchasing and selling.
* wait for more of a buyer's market
* look elsewhere
* use conventional financing - I believe you can refinance with a VA loan, so you might start out with a conventional and then refi. That would put you on a level playing field.
Lance King/Owner-Managing Broker
Take a moment to read this home sellers recent experience regarding VA loans.
As a homeowner, one needs to understand the ramifications of encountering the 'Bank's appraisal Fix' that is in play.
If you want you offer to be considered you will need to do the following:
#1. Don't buy at the top of your price range. Should the appraisal come in low....and is most assuredly will, you will need to be able to bridge the gap. If you are stretched to the limit, the only give is from the home owners equity. Your deal could be rejected.
#2. Remove the appraisal contingency
#3. Increase your down payment...significantly...this still may not work with FHA/VA.
#4. Did I mention, "Remove the appraisal contingency?"
The value of a home has always been defined as what a willing buyer and wiling seller agree upon. Now the Bank's Appraisal Fix has become a debilitating devaluing factor in home sales. As a home owner, and as described by the owner in the above link, 'A blunt stick in the eye" is more attractive than an VA/FHA backed purchase offer.
You have options. The one you choose will define the results.
Best of success in purchasing your new home,
Annette Lawrence, Broker/Associate
Remax Realtec Group
From a seller's perspective, they want an offer that is sure to close with the least amount of hassle. VA loans have specifics about who can pay what, as well as minimal standards for property conditions.
If you have money to put down, I might suggest exploring a 3% or 5% down conventional loan. These do exist and might be worth checking out.
In the meantime, hang in there. You will get an offer ...we are now moving into the 'off season' and there will be less competition for homes.
The challenge you face is not unusual for a loan program that isn't often used in a given marketplace. Real estate agents, Sellers and their Attorneys tend to look at the "new kid on the block" loan program with skepticism. Their cynical attitude shuts down a Buyer with a satisfactory financing option before getting out of the gate.
Here's what I recommend based on my 23 years as a mortgage professional: your Realtor AND your Loan Officer need to do a better job of "Selling" your deal. Often a short phone call from your Loan Officer to a Listing Agent explaining how the loan product works (100% financing, seller's concession, etc.) and the expected turn time for approval and closing (and your LO better not sugarcoat the turnaround time: honesty is the best policy in this regard) will help clear the air and eliminate cynical musings about the unknown loan and how likely it is to close.
Sellers and their agents want the best price, but they also want the sure thing for a closing.
When it comes to losing out to so-called "cash buyers" I can't help you other than to say this: if you're bidding on short sales and foreclosures then CUT IT OUT. Buy a regular house with a regular Seller who needs to sell and move on with their lives. By selecting short sales and foreclosures you're setting yourself up for failure because the decision-making parties aren't Homeowners, they are banks and their agents and ALL they want is the SURE THING.
Lastly, if your Realtor and/or Loan Officer can't step up to the plate to help you get a deal moving into contract/escrow then you need to fire one or both and move on.
It is NOT true that Sellers won't sell to Veterans with VA Guaranteed financing. I am a Mortgage Banker in New York and MY Veteran clients have purchased homes using the VA program and I have assisted them with the financing.
This is a matter of presenting your deal as the BEST DEAL; it's not a matter of discriminating against you as a Veteran.
I hope that helps you buy your first home!
Good luck to you!
A 2 time war veteran has been outbidded by foreign investors with cash. Picture that a US vet with great credit, good stable job and a nice amount of liquid assets can't get a home in this market SMH. How unamerican is that?
Don't get discouraged. The market right now is extremely competitive. Although your VA loan is playing into account in the overall decision process it probably isn't making that much of a difference. With all the cash buyers out there, and with those guys even making over asking offers any loan would be at a disadvantage.
Stick with it, I'm sure it will work out in the end.
Best of luck!