roywilliamso…, Home Buyer in Rancho Cucamonga, CA

I've put in several offers above asking price, cash down and a personal letter. All of my offers have been rejected because it is a VA loan.

Asked by roywilliamson79, Rancho Cucamonga, CA Tue Sep 4, 2012

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Maria Cipollone’s answer
You have to put on the Seller's shoes for a change. If you are a seller, Cash Offers are better than any other type of financing. Why? Fast Closing.
Second, Sellers like Conventional loans contract because normally have fewer bureaucreatic hurdles than FHA or VA mortgages, which it generally takes longer to process because of the requirements.
Do not give up, keep submiting offers and you will get your dream home.

Best of Luck,

Maria Cipollone
5 votes Thank Flag Link Sun Sep 9, 2012
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 and I can explain in more clear detail.
0 votes Thank Flag Link Sun Feb 3, 2013
Hi Roy, I would like to help you and stop your frustration, Give me a call you need to work with an agent that have his own listings to be able to produce Your offer to the seller. call me direct 909-263-8498 dre # 01269757 is me Jose Valladares, with Mario Bonola's Team
0 votes Thank Flag Link Mon Nov 26, 2012
Hi Roy,

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.

Lori Duran
(626) 354-7344
0 votes Thank Flag Link Mon Nov 26, 2012

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


Rashard Scott
Keller Williams Realty
0 votes Thank Flag Link Mon Sep 17, 2012
This is a tough market as many times there are all cash offers on properties, sometimes even above asking price. Don't give up though, as it just depends on which offers are submitted on a property you are trying to buy.
Larry Hodel, Realtor®, RDCPro Certified, SFR Certified, HAFA Certified
DRE Lic #01442093
0 votes Thank Flag Link Sun Sep 16, 2012
I was waiting to see of another broker was going to jump off the cliff.
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
0 votes Thank Flag Link Sun Sep 9, 2012
With all of the typos and other grammatical errors in your post, why should anyone trust you to be their realtor?
Flag Sat Aug 10, 2013
Roy, in order to better understand why your offers are being rejected you have to look at it from the sellers point of view as well. Since you are looking in Rancho area you are aware that inventory is really low, so there will be more competition. Sellers are aware of this and will leverage market conditions to make sure that they choose the best offer to open escrow with, usually the less money you come in with as a down payment creates more uncertainty from a seller point of view, plus the type of loan you use ( VA in this case) has more conditions to close as well, as a result a conventional offers or cash will get accepted most of the time over an FHA or VA offer. According to your comment you are coming in with " cash down" , as far as I know VA is 100% financing ( 0% down) so if you do have money to use as down payment go conventional instead of VA. Depending on your credit score ( how high it is ) you might be able to go conventional 3% down or 5% down. Not all conventioan loans require 20% down. Hope this helps.
0 votes Thank Flag Link Wed Sep 5, 2012
Sorry Anette, but I have to strongly disagree with you. Your assertion that there's an "Appraisal Fix" as if there is a conspiracy to lower values is ridiculous.

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.

Trevor Curran
NMLS #40140
0 votes Thank Flag Link Wed Sep 5, 2012
Unfortunately, this is a common occurrence in any competitive market. The issue is that getting a VA loan approved is much more time consuming and often project approval (or disapproval) is arbitrary. All else being equal, unless you have a seller sympathetic to vets you are probably going to lose every time in that scenario. Your choices are as follows:

* 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.

Best Regards,

Lance King/Owner-Managing Broker
DRE# 01384425
0 votes Thank Flag Link Wed Sep 5, 2012
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
0 votes Thank Flag Link Wed Sep 5, 2012
Unfortunately, it's a sign of the times. In many areas, it is really a seller's market. It's not fair. You served your country and are discriminated against because of the VA loan. I've seen this repeatedly so it's not just you or your agent.

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.
0 votes Thank Flag Link Wed Sep 5, 2012
Good morning Roy and THANK YOU for your Service to our Nation!

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!
Trevor Curran
NMLS #40140
0 votes Thank Flag Link Wed Sep 5, 2012
Yes I have a realtor and she is working very hard to get us a home. Our latest rejection was after being told our offer was accepted. Then the weekend went buy, then we were informed the seller was going with a conventional loan because the process would be "smoother".

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?
0 votes Thank Flag Link Wed Sep 5, 2012
The fact that you're using the VA for your mortgage shouldn't be the issue to the vast majority of homeowners. If you're doing this without a buyer broker however this may be the issue. You're not saving any money and you're realizing that most agents don't want to deal directly with buyer or sellers for that matter and the reason is pretty simple. The vast majority don't really know what their doing and the likelihood of the transaction closing diminishes for a variety of reasons. If you're not working with a buyer broker you should, it won't cost you anything and may even save you money and help you get the house you want.
0 votes Thank Flag Link Wed Sep 5, 2012
Hi Roy:
Are you working with a Realtor? If not, maybe, you should think about hiring one in your area. A realtor's service is valuable.

0 votes Thank Flag Link Wed Sep 5, 2012
call me at 909-263-8498 and I will help you to get the house you are looking for.
0 votes Thank Flag Link Tue Sep 4, 2012
I understand your frustration.. Many buyers feel the way you feel. It is important to work with an Agent who is aggressive enough to package your offer appropriately, and someone who also knows the other listing agents, preferably someone full time and local to the area you are looking. Keep your chin up- the right house will come along! Good luck! Janna- Rancho Cucamonga Realtor
Web Reference:
0 votes Thank Flag Link Tue Sep 4, 2012
Roy, unfortunately that is just one of the common challenges in today's housing market. Many consumers have realized that now is a great time to buy and the available supply of homes on the market is not meeting the current demand. Make sure you are working with a good agent that is following up on your offers and hang in there. You'll find the right one and know it was meant to be!
0 votes Thank Flag Link Tue Sep 4, 2012
Hi Roy,

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!
0 votes Thank Flag Link Tue Sep 4, 2012
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