Tips for Buyers Using VA Loans

August 15, 2013 at 9:19 am 1 comment

by: Maria Hass –

Sad but true:
Veterans’ Administration loans, otherwise known as “VA Loans,” are not appealing to sellers.

Although VA loan requirements to buy a house have become less stringent, many sellers still have the misconception that they will have to pay fees not normally found with cash buyers or other types of financing such as conventional or FHA loans. These fees include the seller paying for the buyer’s escrow fees and other junk fees.

However, the reality is that these fees can be paid by the buyer’s lender, family, friend or real estate agent and are not the sole obligation of the seller. Also, the VA doesn’t make loans on homes that are fixer-uppers or rehab homes. Move-in ready homes are usually your best choice.

It is unfortunate that the men and women who have put their lives in harm’s way for us sometimes have a difficult time buying a house. So, to increase the chances of making your next VA offer acceptable to the seller, especially in a bidding war, here are a few tips:

1. Buyer’s lender to pay for “non allowables”
– It is comforting for the seller to know that they do not have to pay for buyer’s fees and lose more money. In the offer, include the verbiage: “Buyer is doing a VA loan. Contrary to lines 79-80, seller only needs to pay 50% of the escrow fee and seller will pay $0 in buyer closing costs and $0 in buyer VA non-allowables. Buyer’s lender will be issuing lender credit for these items.”

2. Appraisal funds – If the listing is overpriced and an appraisal issue could come up, the buyer can express willingness to pay up to “x dollars” towards the difference between the appraisal value and the purchase price.

3. Letter to seller – It doesn’t hurt for the buyer to write a letter to the seller explaining why the buyer desires the house, buyer’s military service, situation and anything that would convince the seller to select your offer.

4. “As-Is” Condition – Buyer may choose to take the property in “As-is” condition or pay upto a certain X amount to cover for any repairs found during inspection. Either way, it is comforting for the seller to know that they don’t need to spend more money or negotiate on unexpected repairs found in the inspection. Common in short-sale and foreclosure era, many transactions have successfully closed with properties listed in “As is” condition.

5. Larger down payment – Sellers view the down payment as an indication of financial stability and buyer commitment. The bigger the down payment, the more committed the buyer is to the house and perceived as more responsible financially.

6. Shorter inspection period – Cut down the inspection period from 10 days to 5 to 7 days.

7. Do not ask for closing cost assistance – This strategy will increase your chance of getting your offer accepted in multiple offer situations.

8. Faster close – Most VA loans require 30-45 days to close on a home. Write on the pre-approval letter that VA buyer has been pre-approved through automatic underwriting. It makes your buyer appear stronger in the eyes of the seller.

These tips will make your VA offer stronger. Always seek out the assistance of an experienced, qualifiied Realtor. Acceptance of the offer will vary based on competing offers, cash deposit, price offer and type of financing.

Entry filed under: Arizona Real Estate, Chandler Real Estate, Foreclosures & Short Sales, Phoenix Real Estate. Tags: , , , .

Thinking About Moving To Ahwatukee? Ask the Experts First! New Waiting Time for FHA Borrowers In Default To Buy a New Home

1 Comment Add your own

  • 1. Daliangie  |  September 26, 2013 at 10:26 pm

    Nice posting. These tips are really tremendous to sale our home. I think it would be effective for all.Thank you for sharing with us. keep it up.Arizona Land For Sale


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed



Fresh Tweets

%d bloggers like this: