When applying for a VA home loan there are some advantages to having the VA on your side during the home buying process. Did you know that VA loans offer limitations on closing costs? The VA also offers leniency to qualified VA borrowers who are having temporary financial problems.
Other benefits of a VA home loan include long terms of repayment, prepayment rights (with certain guidelines) and under the right conditions, no down payment required. You are also entitled to get an accurate assessment of the reasonable property value of your proposed purchase. These are just a handful of the added benefits of applying for a VA home loan.
The VA has a great many ways to assist those seeking a VA mortgage, but there are also restrictions. When you purchase a home using a VA home loan, the VA does not offer guarantees that your home is free from defects. While the VA does conduct an appraisal of the property, this should not be misconstrued as an 'inspection' or approval of the condition of the property.
Reference Link: http://vastreamlinemortgage.net/va-mortgage-loan-advantages-
Here's a sample of a "VA Option Clause":
"It is expressly agreed that, notwithstanding any other provisions of this contract, the purchaser shall not incur any penalty by forfeiture of earnest money or otherwise be obligated to complete the purchase of the property described herein, if the contract purchase price or cost exceeds the reasonable value of the property established by the Department of Veterans Affairs. The purchaser shall, however, have the privilege and option of proceeding with the consummation of this contract without regard to the amount of the reasonable value established by the Department of Veterans Affairs."
You may also want the purchase agreement to allow you to "escape" from the contract without penalty if you can't get a VA loan.
Buyer agents should explain up-front the hurdles that writing an offer with a VA loan terms will have if those terms aren't being offered on a listing. They should show VA buyers only properties that offer to deal with VA terms - that way, buyers already know a seller is willing to accept the VA loan and would avoid a lot of heartbreak up front. At very least, before showing a property not offering those terms, call and ask if VA terms would be considered before showing the property....
Now I start to worry because after all this I find out it is a VA loan - so I read here.
I am told that the inspector never saw a house as mine in better shape and it cost me less than
$ 15.00 dollars to fix his list ( put bleach in a drain, move a latch plate, fix insulation foam on aircon outside, and cover irrigation outside elec. plug-in. I am like thinking - nice but some cheesey nit-picks so now I gues that was a VA inspection - not so bad I guess.
So, looks like the answers here are good, my buyers are good and my realtor was right.
I know I got to keep the doors locked to keep the buyers from moving in and it is just the second week of this now.
Who knew? Is America Great or What?
The main reason that I see not accepting VA loans depends mostly on the condition of the home. If there are many issues with the home and they are selling the home in "As-Is" condition, accepting a VA loan is basically waisting their time and yours because the lender's appraiser will have many required repairs that the seller would be obligated to fix if they want your loan to be approved. They are attempting to avoid these repair issues. (Have you seen the condition of many of the foreclosures out there?) One option would be a FHA 203K loan if you find a home with many issues and they are not accepting VA or FHA loans. There are many lenders getting up to speed on these loans due to the foreclosure market. I have a list of these lenders on my website which I have referenced below.