ABOUT VA LOANS FOR VETERAN OR ACTIVE DUTY
MILITARY HOME BUYERS
HOMEFINDERS.COM IS DEDICATED TO HELPING OUR HOME BUYERS USING VETERANS ADMINISTRATION FINANCING ENJOY THE BENEFITS OF THEIR SERVICE TO OUR COUNTRY.
SEPARATING FACT (and a bit of opinion) FROM RUMOR ABOUT VA LOANS IS LONG OVERDUE.
WE CONTINUE TO READ POSTS and ARTICLES THAT NEGATIVELY DESCRIBE THE VA LOAN AS:
MYTH #1. VA LOANS TAKE TOO LONG. Compared to what? The guidelines provide a 10 day window for the appraiser to complete the appraisal. Then the LAPP lender/underwriter will issue a CRV, Certificate of Reasonable Value. If the buyer is not working with a LAPP lender, the CRV will take a few days longer. Either way, you're still within a window of no more than 17 days or so. That's a time on which, in my experience, you can rely. Notice that the mortgage company is a LAPP lender, Lender Appraisal Processing Program. Make sure the lender selected is a LAPP Lender with authorization to approve the appraisal.
LAPP LENDERS: Only supervised lenders and non supervised lenders who have been approved for the automatic authority by Central Office (262a) are eligible to apply for LAPP participation. Source: Office of Veterans Affairs.
MYTH #2. VA LOANS HAVE TOO MANY "CONDITIONS". This is an often used excuse for discouraging a buyer who has VA eligibility. Seems to me that, if the VA appraiser is observing "condition" that involves safety or value, that those defects should have been remedied prior to listing a home for sale. The appraiser is providing the lender with a CRV, Certificate of Reasonable Value, meaning, if there are condition that affect the reasonable value of the property, they property is appraised for the value on the Appraisal Report as long as the "conditions" meaning defects are remedied. I have not found, over the years, that VA appraisers are more critical of property condition than appraisers for FHA financing. With low down payment conventional loans, low appraisals are not unheard of.
MYTH #3. VA LOANS ADD COSTS TO THE SELLER. VA loans do not permit the VA buyers to pay for lender fees or termite inspections. That has never been a barrier to our buyers using their VA eligibility because
* The lender fees can be limited in the VA Addendum. We limit the lender fees to $500. If a VA approved mortgage company is charging more than $500 in lender fees, use another mortgage company. Too often buyers are attracted to low interest rates and don't understand that the high lender fees can add just as much to their closing.
* The termite inspections fee is only going to be $50-75 in my area. I just pay the dang thing when the termite inspection is done. Simple solution.
MYTH #4. VA LOANS ADD TOO MUCH PAPERWORK. What paperwork?? One stinking piece of paper, the VA Addendum.
MYTH #5. MY SELLER DOESN'T WANT TO SELL WITH A VA FINANCED BUYER. The seller doesn't want to or have they been advised by their listing agent that they shouldn't? If the seller/listing agent is fearful of a CRV for value, perhaps the property is seriously overpriced. Or, if the seller/listing agent is fearful of "conditions", perhaps some repairs should be made before listing the property for sale.
DON'T FORGET. The VA loan is a true ZERO DOWN loan up to the limit in your geographical ares.
DON'T FORGET. The seller can pay the buyer's closing costs. In fact, the seller can also pay down debts for the VA buyer. Talk to your lender about the limits. It's a LOT higher than you think.
FOR ADDITIONAL INFORMATION, call Lenn Harley, Broker, Homefinders.com, 800-711-7988.
WE CAN HELP.