Home Buying in 01701>Question Details

Nancy Butter…, Real Estate Pro in Framingham, MA

VA loans and how to write an offer?

Asked by Nancy Butterly, Framingham, MA Tue May 26, 2009

I am about to write an offer to purchase a home with a VA loan. Can someone offer some advice.....is it up to 6% that a seller can contribute to closing and pre-paids? Is the bank appraisal tougher ? Is the termite inspection the only required home inspection? In order to help my client, what should be written into the offer...subject to a satisfactory purchase and sale..........but what else??? Thanks in advance for the help I know I will get from you all :)

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Voices Member’s answer
Hi Nancy

Thanks for your question!

Termite inspections are generally no longer required in the Northeast unless indicated on the purchase and sale contract. Yes, the seller can contribute up to 6% of the nonrecurring closing costs (that is to say that the seller can't pay for everything - things like tax escrows aren't part of that as taxes recur.) The VA encourages home inspections but it's not required. You may want to consult with our closing attorney - she can review your offer and P&S for you as part of her closing fees.

To obtain VA financing you would need to obtain a COE (Certificate of Eligibility.) If you don't already have one, check this site: http://www.homeloans.va.gov/eligibility.htm and complete an application for a COE (VA Form 26-1880; http://www.vba.va.gov/pubs/forms/vba-26-1880-ARE.pdf ) You'll need to provide a copy of your DD-214 as proof of military service.

Veterans having a service-related disability may be able to get the VA may waive its funding fee.

I would be happy to help you with VA financing - just let me know!

Tom
Eagle Nationwide Mortgage Thomas.Stevens@ENMCdirect.com
1 vote Thank Flag Link Fri Feb 26, 2010
Personally, I did not realize that WDI was not needed in NorthEast. Is that new? I've done many VA Loans in the past year and all required a WDI. It's funny that yes, this is the only required inspection I know of. They don't technically require a home inspection.

In regards to the VA appraisal process -- note that they take longer; VA appraisers don't have the same turnaround times as others. So just be prepared for that. Also, they do have stricter guidelines than other loans i.e., I had a case where the home was using well water, but there was town water available so the VA requires hookup, we had to have an escrow holdback authorized and it was a bit of a mess. In this case, having a local reputable lender familiar with VA loans (and has VA contacts) is VERY IMPORTANT. He worked hard to help me work through the mess and we got the deal closed. A 1-800 BIG VA BANK would not have been as helpful, I'm certain.

I always write in that offer is subject to home appraising at or above offer price on all loans but very important for VA loans!

More info in another Trulia post on VA loans: http://www.trulia.com/voices/​Home_Buying/​How…
0 votes Thank Flag Link Tue Feb 28, 2012
Thank you for asking this question! You really do learn something new every day. I've been a Realtor for 18 years and have not had the opportunity to do a VA loan.
Web Reference: http://www.mdmrealtyinc.com
0 votes Thank Flag Link Tue May 25, 2010
HI Nancy!

Terrific question and you it is very important that the offer is written correctly. One thing confuses me though and perhaps you can help. Are you buying a "For Sale By Owner"? It sounds as though you are, otherwise, if you had a Buyers Agent they would know the answer to your question.

Having said that Nancy - If you are dealing directly with the owner if it is YOUR best interest to hire a Buyers Agent to represent you. Here, I don't mind, Let's get together and learn if hiring me as your Buyer's Agent would make sense.

Please call me and let me know which is best for you to meet - Afternoons or Evenings: 508-479-9833.

Sincerely and with Warm regards,

Mary Condon, MBA
0 votes Thank Flag Link Sat Sep 19, 2009
If I understand your question correctly, your Buyers will be using a VA Loan to purchase. If so, then your offer should be like any other as their buyer agent. It should be subject to a satisfactory home inspection, WDI, Radon etc. If the home is on well and septic, I believe it will have to have satisfactory water and septic eval as well. The Mortgage broker or the gov website can give you more info on required inspections. I will usually offer the price to be paid first, with a note requesting an addition 6% seller's concession once a price has been agreed upon. Otherwise, some sellers and agents get confused on what you are really offering. Of course, it must be subject to a satisfactory appraisal, but this is usually written into the contracts by attys.....good luck!
0 votes Thank Flag Link Tue May 26, 2009
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