Home Buying in Loveland>Question Details

abarrett05, Home Buyer in Evergreen, CO

What is the best way to identify if a listing is FHA or VA financing?

Asked by abarrett05, Evergreen, CO Tue Aug 7, 2012

Husband and I are looking to buy single family home in Denver metro area, considering 50 (or more) radius, not tied just to Loveland.

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Answers

12
The resources provided by your real estate professional will indicate those homes where the seller has a 'PREFERENCE' regarding financing.

Be aware, any seller accepting FHA or VA will be compelled to reduce their net proceeds from the sale by as much as 6%!!! That is a big, involuntary price reduction. This added to predictably low appraisals can put a seller in a bind AND, (very important) make your purchase offer less desirable.

Some homes listed for sale may have issues that will create obstacles with a VA or FHA appraisal. Some sellers are simply unwilling to dance to that tune.

However, as I pointed out earlier, this is often just a preference. If presented with a good offer and minimal contingencies. most buyers WILL consider FHA or VA financing unless the property is clearly unqualified.

Work with your real estate professional to create the best offer possible.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
727.420.4041
Chat real estate on: http://www.RealEstateMadeEZ.us
1 vote Thank Flag Link Tue Aug 7, 2012
both fha and va have loan limits and they vary from area or state to state Molly 209 809-5365
0 votes Thank Flag Link Thu Feb 14, 2013
Call any agent that has MLS access.... or contact the listing agent.
0 votes Thank Flag Link Wed Jan 16, 2013
Why would you even look at FHA if you qualify for VA. No PMI with VA and FHA is through the roof. I would do USDA before I did FHA if the area qualified but if I qualified for VA there is no question about it, go VA. There is a checklist that the appraisers are supposed to go by to verify if the home qualifies for FHA or VA. Some of the lenders would be willing to share it with a potential buyer. Good luck,
0 votes Thank Flag Link Wed Dec 26, 2012
Hi Abarrett05!
The easiest way for you to find the right home, is to find a Realtor who is familiar with the lending requirements of FHA and VA programs. Secondly, you need to find an experienced lender who knows FHA and VA like the back of their hand. Not all lenders so these loans everyday and will get tripped up by something. Experience counts with these loan programs and you need an experienced team to work together to navigate to a successful closing.

The VA, FHA lender that I work with is authorized to teach classes on these loan types and is excellent. If you would like to work with an experienced team, it would be my pleasure to help you find what you are looking for.

Dena Schlutz
Owner / Broker
Estate Professionals
303-588-7532
Web Reference: http://www.estate-pros.com
0 votes Thank Flag Link Fri Oct 26, 2012
The property doesn’t choose the type of financing you use, you do. Something your Realtor should be explaining, good luck,

Jim Simms
NMLS # 6395
JSimms@cmcloans.com
Financing Kentucky One Home at a Time
0 votes Thank Flag Link Thu Aug 30, 2012
When picking the professional who can best represent you, this is a great question to ask. If your Realtor is unclear with some of the basic underlying needs and POSSIBILITIES of homes that can go FHA or VA - then pick a Realtor who is clear. Things such as peeling paint and general condition of the house are the most common and visible, however, condos/townhomes can get VERY tricky.
0 votes Thank Flag Link Thu Aug 30, 2012
Agents need to be aware that that rules are different in each state,( I am licensed in a couple) however typically the government programs do not differ. The statement made about a seller having to take a 6% hit on a VA of FHA loan is just not true. A buyer can request it but a seller does NOT have to accept it, and it would not be right to be telling your sellers that it has to be accepted.

And by the way the best way to tell if a home is qualified for FHA or VA financing to you have your Realtor go with you to look at the homes, he or she should be knowledgable enough to know what is required to obtain this type of financing.

Best of luck in your home search.
Web Reference: http://www.TheBeachLady.com
0 votes Thank Flag Link Wed Aug 8, 2012
I have to ask, Annette, where do you come up with your comment "any seller accepting FHA or VA will be compelled to reduce their net proceeds from the sale by as much as 6%?" That is simply not true.

A Seller MAY have expenses up to $350 with either an FHA or a VA loan, due to costs not allowed to be paid by the Buyer, but I've never heard of up to a 6% hit for accepting either of these loans. And, I've never heard of the Seller being compelled to reduce their price. The offer will have any conditions or reductions of price written into it. The Seller can choose to accept, counter, or reject any offer. There are no charges that come after the contract is signed that the Seller is REQUIRED to accept.

The Seller should be happy to allow anyone with the ability to get a loan to come in and purchase their home. The Seller also does not choose what loan program a Buyer can or cannot use in purchasing their home.

Now, before anyone gets all upset saying "well, the Buyer can ask for Closing Cost assistance," that is true with any type of loan, regardless of whether or not the loan is backed by the Federal Government. Simple fact is, this information will be in the offer, as well.

I do not know what the appraisal issues may be in Florida, but here in Colorado, I have seen very limited appraisal problems recently, and those are typically with overzealous pricing of homes in a Seller's Market, which we have now.

Lastly, if a home has issues that may create a problem for either an FHA or a VA appraisal, then the Buyer needs to be aware of these issues. In all cases, if the appraisal finds problems, it has to do with the livability of the home, and the Buyer needs to be aware of this. Additionally, if the appraisal finds these issues, I'm sure the Seller knows about the problems, and he/she or the Agent should be disclosing these issues anyway. I'm not sure it has anything to do with dancing to a tune, it has to do with either fixing it or not.

Sorry if I come across harsh, but the truth is that we are here to give correct information to potential Buyers and Sellers, and incorrect information does not help anyone.
0 votes Thank Flag Link Tue Aug 7, 2012
If you're looking at disstressed properties, sometimes they do not qualify for FHA or VA because they have issues. However, some sellers do not want to deal with VA financing, which is why some "regular" listings may say "cash, conventional, FHA" (and exclude VA). Are you pursuing FHA or VA?

Your agent should be able to go through your list of 50 homes and verify they qualify for the financing you're trying to obtain. If you're not working with an agent, I'm happy to help!

I'm based out of Longmont, and do a lot of business in northern Colorado including Loveland & Ft Collins.
0 votes Thank Flag Link Tue Aug 7, 2012
If you have a Buyer's Agent who is helping you to purchase your next home, you should tell him/her to only look at homes that are either FHA or VA approved. We can do this in our MLS, as this is a search criteria we can use.

Best of luck to you, and if you choose to continue looking in Loveland or in Fort Collins, I would be happy to answer any questions you may have. Cheers!
0 votes Thank Flag Link Tue Aug 7, 2012
Almost any single family home should be eligible for FHA or VA financing. If the property is in bad shape it could require repairs before it would insurable by FHA or VA. Only time you should need to worry about a property being FHA or VA approved would be with a condo. Feel free to contact me direct if you have any other questions or would like rate quotes.
0 votes Thank Flag Link Tue Aug 7, 2012
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