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Why does it seem like sellers don't like selling to vets using a va loan?

by janinej9carrington from St.louis, Missouri. Sep 3rd 2013 Reply


Elden Lewis (elewis_409_299)
#41 ranked lender in Indiana - 223 contributions

Sorry, that should be "educating the Realtor on"

Sep 3rd 2013
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William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions

VA loans have different rules in place to be sure the borrower does not get taken advantage of when it comes to financing a new home.. The closing costs are slightly higher, however VA says that about half the "Normal" costs associated with a new loan can not be paid by the borrower. So either the seller, seller's agent, lender, etc.. has to pay those costs, but you cannot.. Also, VA has a much different approach when it comes to home valuation. The VA appraisal take up to 3 weeks to complete, further delaying the closing.. So higher closing costs to the seller, and longer close of escrow times because of the appraisal delay makes VA unattractive for some folks in the "hurry up" world we live in.. Here's an idea.. I recently read an article where a family was trying to purchase their first home. Husband and wife with one child, and one more on the way.. They included a hand written letter and some photos of their family with their offer.. In the letter they told the seller how much they loved the home, and it's character. they talked about it's proximity to the school and park, how they liked the overall feel of the neighborhood.. and how they could see themselves living there for the next 15 to 20 years as they raise their family.. they ended up getting the home even though there were multiple offers, some even higher than theirs.. all because they tugged on the hearts of the seller.. you might want to consider doing the same in your scenario.. it just might work.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Sep 3rd 2013
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It could be that lack of knowledge, stricter appraisal standards, or the timing it could take to close the loan.

Sep 3rd 2013
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Elden Lewis (elewis_409_299)
#41 ranked lender in Indiana - 223 contributions

I think that Realtors are as much at fault as the sellers. There is a stigma to using VA that it takes longer, the appraisal process is stricter, there closing cost on VA loans that the buyer cant pay and therefore the seller must pay them. If you or the Realtor are dealing with a good loan originator, he or she should be education the Realtor the benefits of the VA loan. VA loan can be a very useful tool for the Realtor to have in there arsenal to help them sell more properties. Like Gary said its all about knowledge.

Sep 3rd 2013
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Dave Metsker (DaveMetsker)
#35 ranked lender in Oregon - 2,318 contributions

The closing costs for the seller are higher.

Sep 3rd 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions

As others have said, it shouldn't make much difference to the seller other than slightly more stringent property standards. Any cost difference to them should be minimal if you are using the right lender. That issue is probably more true in areas where the market isn't used to VA eligible buyers.

Sep 3rd 2013
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