WHY IS IT SO HARD TO USE A VA LOAN TO BUY A HOUSE? EVEN WITH A DOWN PAYMENT, VA LOANS ARE NOT ACCEPTED

Asked by Bryan Cunningham, Miami, FL Thu Apr 18, 2013

SINCEI GOT OUT IN 1998 ALL I HAVE EVER HEARD WAS "WE WONT TAKE YOUR VA LOAN"

ITS A SHAM BY THE GOVERNMENT TO ENTICE PEOPLE TO JOIN THE SERVICE ONLY TO FIND OUT THIS IS A USELESS BENEFIT THEY CANT USE

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26
Steven Epste…, Agent, Coral Gables, FL
Fri Apr 19, 2013
BEST ANSWER
Great question! I am closing one for a client in the next week, the 3rd in 8 mos approx. And while they have their own idiosyncracies, they are closeable once you have a very good, experienced team of Real Estate Broker & Mortgage Banker, like mine. Be aware there are other market forces we don't have control over, like very low inventory levels, high buyer pool demand and in So Fla over 70% - 85% of all transactions for several years have been cash buyers, very hard to compete with when you're financing anyway, FHA or VA or even Conventional. Then there's property condition which the VA have higher standards for their borrowers/loans over & above FHA & CONV. Most all condos are NOT VA/FHA approved in So Fla anymore, so only fee simple townhomes w/HOA only and single family homes are possible candidates and then its back to their physical and title conditions. Then there's the borrower (you possibly) your credit, income, wants, needs and housing criteria, like where? when? what? why? how? price range? Trust this helps and makes sense. And If you need anything further please feel free to call me during normal business hours at the contact info in our website link below. And please also send your email address and phone number, I'll be excited to help you with all your real estate needs and honored for the business opportunities.
0 votes
My Loan Officer is trying to get me a VA loan while asking the sellers to pay for closing cost. I don't think anyone is going to want to do this. By the way I've looked at several houses and none of them will pass a VA inspection. I'm getting depressed.
Flag Sun Jul 9, 2017
Annetinau, Home Buyer, Ontario, CA
Mon May 11, 2015
As banks tighten lending standards, demand has increased tremendously in recent years for Veterans Affairs mortgages, known as VA loans.

The VA loan remains one of the few mortgage options for borrowers who don't have down payments. Available to more than 22 million veterans and active military members, VA loans are somewhat easier to qualify for than conventional mortgages.

The U.S. Department of Veterans Affairs is not a direct lender. The loan is made through a private lender and partially guaranteed by the VA, as long as guidelines are met.

> Eligibility:-

Most members of the military, veterans, reservists and National Guard members are eligible to apply for a VA loan. Spouses of military members who died while on active duty or as a result of a service-connected disability may also apply.

Active-duty members generally qualify after about six months of service. Reservists and members of the National Guard must wait six years to apply, but if they are called to active duty before that, they gain eligibility after 181 days of service.

> Advantages of a VA loan

The days of no-down-payment mortgages are long gone, but not for veterans. Loans guaranteed by the VA can be obtained without any down payment.

"That's a huge plus," Frueh says.

Another plus: A VA loan doesn't require mortgage insurance, as do Federal Housing Administration and conventional loans with less than 20 percent down payment. The benefit translates into significant monthly savings for VA borrowers. For instance, a borrower who takes a $200,000 FHA-insured mortgage pays more than $200 a month for mortgage insurance alone.

Reference Link: http://vastreamlinemortgage.net/
3 votes
Brittany898, Home Buyer, San Francisco, CA
Mon May 4, 2015
Buying a home using your VA loan benefits can be one of the most exciting transactions you’ll ever make. But it can certainly come with moments of frustration and uncertainty. Maybe that’s not entirely unsurprising when you’re talking about a six-figure purchase. The highs and lows of the homebuying process are often amplified for first-time homebuyers. There’s a whole new language littered with strange acronyms like GFE (Good Faith Estimate), APR (Annual Percentage Rate) and MPR (Minimum Property Requirements).

Loan officers and underwriters are asking for pay stubs, tax returns and other documents you haven’t touched in years. And there’s a joy and sense of accomplishment when a seller accepts your offer that’s tough to find outside the world of homebuying. The reality is this doesn’t have to be an emotional roller coaster. Sure, hiccups and unexpected issues can and do arise.

But both experienced and first-time military homebuyers who come into the process with some education and preparation in hand are setting themselves up for the best possible experience. Here’s a look at 28 must-read VA loan tips to help VA homebuyers get the most from their hard-earned benefits.

> Start Without a COE

You don’t need to have your VA Certificate of Eligibility to start the VA loan process. It’s common for lenders to get this document for you a little later down the road. By all means, you can certainly obtain yours if you’re concerned about your entitlement amount or just feel better having proof of your benefit.

> Scour Your Credit Report

Your credit profile will play a crucial role in your ability to land a home loan and the type of rates and terms available. Before you pursue loan prequalification, get a free copy of your credit report from Annual Credit Report.com, Examine it with an eagle eye for errors, which can be anything from accounts that aren’t yours to reporting errors regarding late payments. About a quarter of all credit reports contain errors serious enough to derail a home loan, according to the U.S. Public Interest Research Group.
Referral link:- http://valoanguidelines.org/
3 votes
Jim Olive, Agent, Key West, FL
Fri Apr 19, 2013
Okay, let me start by saying I have had successful VA closings and, as a disabled Vet myself, have a VA loan for my home. The problem is that the VA is a lumbering government agency that moves slow and is inflexible. If there's anything unusual about a deal, they often blow it by denying the loan because "it says right here, on line 2,341 that xyz cannot exist". They have failed to keep up with the times and are nearly impossible when dealing with distressed properties. Take, for example, a short sale. Typically the seller in a short sale has no money, so they cannot pay for the things the VA requires them to pay for(minor repairs, termite inspection and treatment, etc). Often the bank refuses to pay because it is a bank, and that's what they do. That gets even worse when the buyer, recognizing that they are getting a great deal, offers to pay for them and the VA says no, they will not allow the buyer to pay. Ridiculous. The VA needs to become more nimble so that it can better serve the Veterans it is supposed to be helping.
As for Realtors and sellers who refuse to take VA buyer's offers...that's nothing new, it costs the seller more (typically) to close a VA loan, so if they have an option, they will typically choose the cheaper option.
And, as a 27 year member of USAA, and holder of a USAA VA loan, don't even get me started about them!!!
2 votes
I was considering USAA, so your saying that that might be a mess I want to avoid?
Flag Sat Nov 26, 2016
Annette Law…, Agent, Palm Harbor, FL
Fri Apr 19, 2013
Bryan,
As Jim stated ACCURATELY (TU), in this market the question is not 'Why are VA and FHA's loans rejected?" BUT...Why are the other options more attractive to HOME SELLERS?
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Unless you been living in a cave, it is easy to identify Chase, Bank of America and Wells Fargo as the worst and nearly most predatory institutions in the world, yet folks continue to use them. Why? Becuase they give the appearance of being easy and conveinent.
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If VA and FHA, as Jim Olive ACCURATELY described, woke up from their buracratic melaize, your situation can change. For a homeonwer, entering into a purchase agreement with VA or FHA backing is like kissing a chain saw. Folks prefer easy and conveneient. VA is not either of those.
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Now, there is a solution. This is working with a real estate professional who is not spewing the non-sense that EVERYONE else is stupid. You ARE at a disadvantage. There are creative and construview ways to address your situation.
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If I were in your shoes, I'd give Jim a call and get onboard with how to position your purchase offers to get a different response. I have a good feeling Jim knows the best approach is through staging the situation to produce a true win/win.

Best of success to you,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
1 vote
Gregorio Den…, , San Diego, CA
Thu Apr 18, 2013
It's not a sham by the government, it's a product of lazy, uneducated RE agents who improperly advise their clients about what offers to accept. I have said it 100 times that I believe agents are completely misguided and not doing their jobs when they don't tell sellers to jump at offers with VA and FHA financing. VA and FHA are some of the easiest to qualify for and if the goal is to attract offers that can actually close, then they are missing the boat by ignoring these.

Sellers that won't accept a qualified VA offer are quite frankly; stupid and so are the agents that advise them.

Keep trying and find a good buyers agent that understands the strengths of VA financing and can convey your qualifications properly with your offer.
1 vote
Marsha Umans…, Agent, Tamarac, FL
Thu Nov 2, 2017
Hi Bryan. I had several clients who used VA loans to buy their homes in Florida and we had no problems or aggravations. Your realtor needs to be in communication with your VA loan officer and structure your offer in a right way to avoid or minimize your losses. Don't get discouraged. Va loans work fine.
0 votes
Jeffc58az, Home Buyer, Miami, FL
Sat Oct 28, 2017
Yep, dealing with the VA fiasco is a joke!, I had to pay 600.00 for the VA appraisal, that took 17 days after they got my money!, then they keep adding things to the list of crap they need, which has pushed out my closing yet another month, realtor wants, so disclaimer to seller that I will let him have earnest money if I can't close on the third closing date!, so far the VA delays have cost me the first house I had an offer on, now it looks as though if I continue this VA joke I will be out the 600.00 appraisal fee,also paid for a termite inspection, which VA said I'm not allowed to pay for, but seller said he won't pay for!, I could vent further but long story short!, I fully expect to lose my earnest money, etc, and or continue this VA hay ride to the cross roads where I sign the mortgage loan with the devil!
0 votes
, ,
Mon Nov 21, 2016
That is truly unfortunate that you have been misinformed. My company closes VA loans all over the United States except Maryland. Typically whomever tells you this type of information just doesn't have the ability (not approved thru VA) to offer these loans.

VA loans are the best loans out there with low interest rates, no downpayment and the ability for the Veteran to truly have a no cost loan. Also, I can get you in touch with a realtor that offers Homes for Heroes and you will receive a cash incentive at the closing...you can't beat that!

I would love the opportunity to tell you about our programs.

Theresa Jones
NMLS 38971
0 votes
, ,
Mon Nov 21, 2016
Florida VA Mortgage lenders along with our Federal Government has taken to benefit Florida home buyers, and specifically, those who are Veterans and Active Duty personnel. The Mission of Florida VA Mortgage Lenders is to help veterans and active duty personnel purchase and retain Florida VA mortgage in recognition of their service to the Nation.
US Mortgage Lenders - Thomas Martin
Min FICO 580 FHA/VA Loan Approvals 7 days a week
PH: 954-667-9110
http://www.florida-mortgage-lenders.com/
0 votes
, ,
Sun Nov 20, 2016
VA mortgage is probably the easiest loan to qualify for as long as you can show the ability and willingness to pay debt.

VA mortgage benefits that only come with a VA mortgage:

Easier qualification standards
Less strict credit and income standards
100% Financing = No down payment required.
Bad Credit Score VA loans Down to 550!

US Mortgage Lenders - Thomas Martin
Min FICO 580 FHA/VA Loan Approvals 7 days a week
PH: 954-667-9110

http://www.fhamortgageprograms.com/
0 votes
, ,
Sun Nov 20, 2016
Have your realtor call the selling agents of all the houses your interested in before you leave the house. This way you know your only looking at houses that the seller will accept VA.

US Mortgage Lenders - Thomas Martin
Min FICO 580 FHA/VA Loan Approvals 7 days a week
PH: 954-667-9110
http://www.florida-mortgage-lenders.com/
0 votes
, ,
Sun Nov 20, 2016
I would call the selling realtor first and find out if the seller will accept VA.

US Mortgage Lenders - Thomas Martin
Min FICO 580 FHA/VA Loan Approvals 7 days a week
PH: 954-667-9110
http://www.florida-mortgage-lenders.com/
0 votes
VA Mortgage…, , Jacksonville, FL
Thu Jun 16, 2016
A lot also depends on the realtor, price point and market location.

VA Mortgage Hub
National VA Loans
http://www.VaMortgageHub.com
0 votes
, ,
Thu Oct 8, 2015
Good afternoon Bryan,

I'm so VERY SORRY you have experienced such difficulty. I've helped Veterans with their mortgage financing since 1989 and I've run into this problem frequently. The key to a successful outcome is in the negotiating your Offer...and the Loan Originator needs to be "present and accounted for" to provide detailed and positive feedback on the VA Loan Application process.

This is an important component in the way I work with my Veteran clients...I'm ready, willing, and able to explain to all parties involved in the transaction how VA Loans work, and, more importantly, to ease their fears about all the untrue-nonsense floating around out there about this amazing loan program.

Finding the right, and VERY EXPERIENCED, Mortgage Loan Originator is the primary step for any Veteran wishing to use the VA Guaranteed Loan program.

Trevor Curran
NMLS #40140
*If you thought my answer was helpful, please give me a “Thumbs Up” or “Best Answer.” Thanks!
0 votes
, ,
Wed Sep 2, 2015
Hello Bryan

I do not know why you are having such a hard time with a VA loan. I am sorry
I do VA loans all the time and they are no more difficult then any other loan type

Pls call me if I can be of help
I do loans anywhere in Florida

Thanks

Tom Bawany
Envoy Mortgage
Maitland, FL
Mortgage Loan Officer, NMLS # 519971
407 924 2759
0 votes
VA Mortgage…, , Jacksonville, FL
Thu Aug 6, 2015
My advice is insure you are working with local professionals that understand the process- lender and realtor. There is nothing difficult with VA - hundreds are closed each day in Florida. And without a doubt VA is the best mortgage program available today for those that have eligibility. Contact us below if we can help

VA Mortgage Hub - Florida's VA Loans - 7 days a week
Ph: 904-385-3988
http://www.VaMortgageHub.com
0 votes
Beth Michaels, Home Buyer, Tampa, FL
Sun Aug 2, 2015
VA mortgage benefits that only come with a VA mortgage:

Easier qualification standards
Less strict credit and income standards
No down payment required
Bad Credit Score VA loans Down to 550!

http://www.florida-mortgage-lenders.com/index.php/va-mortgag…
0 votes
Javier Olmedo, Agent, Miami, FL
Wed Jul 8, 2015
Bryan,

It isn't any harder so I'm not sure what your particular problem has been but it isn't not a sham. I would seek alternative advice from what you are currently receiving.
0 votes
Jeri Patrick, Agent, Pooler, GA
Mon May 4, 2015
I would contact your real estate agent and your lender to sit down and go over your home options with a VA loan. Best of luck
0 votes
Darryl001, Home Buyer, Albuquerque, NM
Fri Sep 19, 2014
You are Absolutly right, I married a woman that is self supporting as a 911 dispatcher. The VA insist that her debt be counted as mine even though , I am not legally liable for her debt prior to marriage
0 votes
Lila Henry, Agent, South Miami, FL
Fri Apr 19, 2013
Good Afternoon Mr. Cunningham,

I was speaking with a loan officer I have worked with for quite some time, and depending on your credit score, etc, you may be able to get a 95% financed loan. Using your VA benefit is good idea but there may be additional options for you to consider. As I can see you are here in Miami, as is the loan officer I would suggest you reach out to and he would gladly provide you with all of your options depending on your indidivual buyer needs. Please feel free to send me an email and I will forward his contact information to you you.

Lila Lopez, CRS, CDPE, e-Pro
RE/MAX Advance Realty
homesbylila@yahoo.com
305-772-2521
0 votes
Yanoska Diaz, Agent, Miami, FL
Fri Apr 19, 2013
Gregorio,

Regarding your comment: Sellers that won't accept a qualified VA offer are quite frankly; stupid and so are the agents that advise them.

I don't know how the market is looking in Cali, but here is South Florida, the Seller on a nicely priced property typically receives multiple cash offers within the first week in the market. Most of these cash offers are at full or above asking price, minimum contingencies if any and less than 30 days to close.

Will you still say that is a stupid decision to choose the all cash offer?
0 votes
That's a typical deflection where you pull out of the air 1 circumstance and act as if all are like that. I know you are not saying that every property sells for cash are you? The person asking the question has been unable to acquire ANY property and states he's being told they won't accept his VA offer. You know as well as I do that it's due to ignorance and not cash offers.
Flag Sat Apr 20, 2013
Nereida Figu…, Agent, Miami, FL
Fri Apr 19, 2013
It is no hard to use a VA LOAN. The hard is the people or professional even seller which don't know the advantages to deal with this kind of loans. Property is something that need to be sharp to pass a VA LOAN. If property physical condition is not good them, owner need to repair or do some repair to pass the VA LOAN. Sir, please call me I'm doing Listing that maybe qualify for your VA Loan.

Thanks you very much to support our Liberty and Justice for All because freedom is not for free.
0 votes
Mali Shahbaz…, Agent, Miami, FL
Fri Apr 19, 2013
I believe in Today's market every thing sells above appraise value, in another word appraised values have not caught up with market, therefore the seller's prefer cash or conventional financing
With no appraisal contingency
Mali Shahbazian
Http://malisellsmiami.com
0 votes
Lila Henry, Agent, South Miami, FL
Fri Apr 19, 2013
Good Morning Mr. Cunningham,

The perception by some realtors is that VA loans won't be accepted by sellers and many stay away from assisting buyers that are looking to purchase using VA benefits. This is due to a lack of understanding of how the program works. I can attest to having closed many VA loans the last of which was just a couple of weeks ago. When working with buyers using their VA loan benefits, my first suggestion is to contact USAA to get their loan preapproval, and with that in hand they are ready to go, whether they are purchasing getting 100% financing or placing a downpayment, it can definitely be done. The only time I have ever encountered a problem with VA financing is if the property in question is in unlivable condition, but otherwise, the appraisal's are done the same, the loan process is the same, nothing vastly different from a conventional or FHA. In the 20 plus years I have been in this industry, I have seen "strong" 20% conventional buyers not be able to get their financing, which FHA or VA do, the strenght of the loan is not the type of loan but the true strenght of the buyer applying for the loan.

With this said there are seller hesistant to accept offers that will have VA financing, but they have those same hesitancies on FHA, you will want to search for a Realtor that can recognize the strength in you their client and advocate for why your offer, if properly reflective of market pricing would be the right offer to proceed with. Good luck with your search. Should you have any further questions, please feel free to contact me.

Lila Lopez CRS, CDPE, e-Pro
RE/MAX Advance Realty
homesbylila@yahoo.com
305-772-2521
0 votes
Don't go to USAA for preapproval for VA loan. Their preapprovals are much lower than other lenders. Just find an experienced VA mortgage broker. I am already preapproved for more than what I am willing to spend. Now, if I can only find a house appropriately priced. I see a house that was appraised by the county at $119k, but they are listing at $234k. I know that the county appraisal is lower (generally about 80% of true appraisal), but I have RE agents telling me that isn't correct either and that they are actually worth a lot more than that. So, what is the correct answer?
Flag Thu Jul 9, 2015
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