I have had great success in getting my VA offer accepted because I am good at explaining the process correctly to sellers agents. Educating them to the truth makes a big difference in improving your chances. Plus, I am a vet and I enjoy working with vets and I believe that makes a difference as well.
It is 2014 and too many of us have forgotten a time called 2008, when sellers would have LOVED to see any offer come through the door --- including VA and FHA offers.
You have to play the cards you're dealt. You can't control what you don't control (the seller). If you're a VA buyer, make sure YOUR agent understands and can represent your offer best. Eventually you will succeed if you continue to try. I have never known this to not be the case.
It really sucks but yes there are restrictions on a VA loan AND yes a seller does have to pay certain VA non allowables. Not to mention a lot of VA appraisals come in low because you have to get a VA certified appraiser (not a lot of them) and sometimes they have no idea on the specific area they are appraising.
If a seller has multiple offers usually the line of order goes cash, conventional, FHA, VA.
As an agent it's frustrating for me because you would think there was a better system in place for veterans. They want to protect veterans which is good but when it comes to a sellers' market VA loans are last on the list usually to get accepted.
Don't give up. Sometimes everything just falls in place and you will get the house you were meant to have.
I've closed many VA loans, even in this current market, and I honestly believe having the right realtor is the key. You have to have a realtor who truly wants to work with a veteran. Interview realtors until you find one who is excited about working with you. If the realtor has experience working with veterans and enjoys it, you'll never hear them mention (to you) that the VA loan is a problem.
And believe it or not, there are sellers out there who feel really good about selling their homes to a veteran.
All the best,
Elva A. Wormley
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS #331981 / DRE #01274093
Unfortunately, with a FHA or VA loan you are often just going to run into old prejudices. I suggest you use a lender local to where you are buying (NOT 1-800 loans) which will be a big factor in assuaging the fears of the listing agent. I also suggest you use a Realtor confident and experienced in closing FHA and VA loans. Not because those loans are so terrible (they arent!), but because your agent may need to be able to convince the listing agent of that fact.
for closing costs at the end, I also presented the offer in person, I am not a big fan of sending email
offers with no contact with listing agent. The VA is a great loan program which we all should be embracing.
There are no real restrictions to the seller specifically.
There are guidelines that state the VA buyer cannot pay for certain fees.
In a seller's market, such as we have, the seller does not want to have to pitch in for these fees, so someone, aside from the Veteran, must pay for these.
What I do, as your lender, is give you a lender credit for these fees.
In essence, as a Veteran, you can go in with zero down payment and have all your closing costs credited to you from your lender. This does result in a silghtly higher intererest rate, but it gets you in and the seller is not out of pocket any money.
Although my loans are processed out of our Fremont location, I am happy to meet with you at your home or our other satelite offices!
Please contact me at firstname.lastname@example.org and we can discuss in detail.
Although buyers may be willing to do certain repairs AFTER the sale, they are not willing to take responsibility for them BEFORE they even own the property. But they can't get the loan unless those things are done. As such, they ask the sellers to undertake the repairs. Most sellers would rather not, specially if there are other buyers who are either paying in cash, or getting a conventional loan with less stringent requirements. Sometimes, price isn't the only determining factor when a seller chooses whose offer to accept.
If you happen to be a VA buyer it is absolutely critical that you have a loan agent and the buyers agent who understand the real truth about the VA loan process.