In the current market with escalating prices, sellers can choose whom they sell to, and they are, en-masse, choosing either cash or conventional financing with a high percentage of money down. They are also asking that the sale be â€œAS-ISâ€ and in many cases, that the appraisal contingency be removed. They want a full 3% down as the good faith deposit.
1. That the buyer need only put down a very minimal amount, which is then refunded at the close of escrow for an effective 100% financed loan.
2. That the seller provide a Section 1 and, in many cases, a Section 2 clearance.
3. That the home be in move-in condition.
4. That the home appraise for the offered price.
5. That the seller contribute to closing costs.
While the VA program is a great idea for our Vets (one of my daughters is currently in the armed forces, so I appreciate the sentiment), it only works in certain markets â€¦ and this is not one of them. And itâ€™s not just VA loans getting blown out of the water â€¦ offers with FHA loans are more often than not DOA as well.
Here is a post that may clarify for you:
Veterans and VA Loans: Losing The War â€¦ At Home
And as you now know, the market is very competitive, and it's not unusual for listings to received multiple offers within days after the listings are activated on the Mls.
Good luck to you.
VA requires an inspection and certain items need to be repaired. The property also has to appraise. With the amount of investors in the market, VA, FHA and LOW down Buyers are missing out because all cash with few to no contingencies is very pleasing to a seller.
It is unfortunate. I don't believe that it is all a lack of understanding, but who has the best over all offer.
Hang in there.
The best place to use VA loan right now are some of the new construction condominiums and townhouses. New construction is generally happy to sell to all-comers and do not have the same bias to VA loans as many individual Sellers do.