Arise Realty and Ascend Mortgage
Real estate agents do not understand the VA loan.
You need a professional loan agent to not only preapprove your loan, but articulate to agents that a VA lona does not need to be the headache they believe it to be.
VA does not require 45 days. As a direct lender (we sell direct to VA, so no middle man.
Once we preapprove your loan, all we need is an appraisal. This is where the system bogs a little.
The VA appraiser has 7business days to get the appraisal back to us. If we order it immediately, we will receive it back in time for a 10 day appraisal contingency removal.
I recently closed a VA transaction where the listing agent was very concerned about our being a VA loan. She called me and I asked her what her concerns were with the VA loan. It was two fold:
1. Seller has to pay non allowable fees for Veteran (these fees were paid by the lender as a credit)
2. Appraisal requirements (not any more stringent than a conventional loan)
There is a termite report and clearance required on VA properties. If the property is in disrepair this could be an issue.
Please feel free to contact me and we can discuss this at greater length.
I would prefer the VA loan for you (no mortgage insurance), but with 5-10% down, we may be able to have options.
I would be happy to help! VA loans are EZ!
When sellers have multiple offers, they look for those with a good price, but also those that have the best chance of completing the purchase during the planned escrow period.
Any special circumstances can appear riskier to a seller. For a VA loan, the pest report is a factor and so is the smaller number of available VA appraisers. Non-VA loans usually close in 30 days or less in this area. There are strategies for minimizing the importance of those factors, including well-remodeled homes.
Karen Nelsen 510-912-8681 KarenN@apr.com
VA loans are definitely doable, but they can be more challenging than with FHA or conventional financing. What I have found to be the real challenge is with a VA loan the property has to have a clear pest and per the loan requirements, you the buyer, is not allowed to pay for repairs if they are needed. This seems to be the biggest hurdle. The 45 day escrow when compared with a standard 30 is also a little tougher.
Much of the housing stock in Oakland is older, and finding homes with some pest work is not uncommon. Add in that it has been more competitive for buyers, this makes the VA loan a bit tougher to work with.
That being said, there are homes that are options. You will probably need to look at homes that have been recently renovated or have had the pest cleared (there are some out there). Also you may want to consider a townhome as well (not sure what you and your wife are looking for).
I do know of a few renovated homes that might be an option depending on where you are looking.
If you would like some further information, please do not hesitate to contact me.
Hope that helps!
Alain Pinel Realtors
The other problem with a VA loan is that they require a clear section 1 of the pest report. Most of the housing stock in Oakland was built between 1904 and 1934. These are old homes, and most of them do have something in section 1 of the pest report. A $5000 section 1 pest report is not uncommon, When you stat looking at decks and older windows, this number quickly rises.
That is another reason why sellers and listing agents often do not consider a VA loan as something that will close. Add to that an extremely low inventory, and a lot of competition for homes on the market, a listing agent will ,ore likely chose a buyer who will be easier to close.
There are other options for you. You can look at recently remodeled or flipped homes that often have clear pest reports.
Your homne is out there. Just keep looking.