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Old 05-31-2009, 02:36 PM
 
23 posts, read 146,355 times
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We were pre-approved for a VA loan and looked at A LOT of houses, given more than a handful of offers of equal or more than list price. Of all the houses, we've gotten a reply on one and the rest never replied back. Our realtor said that the banks that own the houses don't want to deal with VA loans, and would rather wait for other offers/loans.

So my question is: Is anyone else having this same problem? I knew that buying a house isn't fast/easy, but i never thought that out of 8+offers only 1-2 would actually reply back.
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Old 05-31-2009, 10:12 PM
 
Location: Fayetteville, NC
1,490 posts, read 5,411,255 times
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Problem in our area is most REOs are too beat up to meet minumum VA standards. If the house needs repair you might have to escrow the repair costs to get the bank to loan you the money. One recent client had to do that on a VA owned REO he was buying with a VA loan. VA would not bring it up to VA standards. Stupid huh?
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Old 06-01-2009, 01:52 PM
 
Location: North Las Vegas
1,631 posts, read 3,576,643 times
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Quote:
Originally Posted by snobdrblinkchik View Post
We were pre-approved for a VA loan and looked at A LOT of houses, given more than a handful of offers of equal or more than list price. Of all the houses, we've gotten a reply on one and the rest never replied back. Our realtor said that the banks that own the houses don't want to deal with VA loans, and would rather wait for other offers/loans.

So my question is: Is anyone else having this same problem? I knew that buying a house isn't fast/easy, but i never thought that out of 8+offers only 1-2 would actually reply back.
Your realtor should have been more specific in there answer.
VA has strict guidel lines when the guarentte a loan.
And allot of these REO properties won't fit those guidelines and the banks would have to put out more money to meet them . Like the home has to have appliances. Talk with your lender and get the guide lines as to what the VA expects and go from there when picking houses to look at so you don't waist your time.

Also your realtor can check to see first if the seller will accept VA before you look. It's not just VA it's FHA loans to they have strict guide lines as well not as stric as VA. Right now Cash is king and Bank owned properties are taking Cash over loans even if it means taking a lower price.

It's not fair and whoever said banks were fair they got us in this mess and they continue to keep us in this mess.

Best of luck don't get discouraged this is a great time to buy with so much inventory out there and prices at all time low.
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Old 08-02-2009, 10:22 AM
 
5 posts, read 52,021 times
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Yes, I am in the same boat as you. It's really nice having the use of a benefit as great as a VA loan. But not being able to find a property in my price range that is in good enough condition is a major problem.

I wonder how it worked out with you? Did you finally get a REO property?
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Old 08-02-2009, 04:27 PM
 
23 posts, read 146,355 times
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The conditions of the houses was no problem. All of them were able to pass the VA guidelines. Unfortunately VA loans take longer to close (about 60-90 days) so they aren't favorable. We also lost out to cash offers. We submitted about ~25 offers with many of them $20k-$30k more than listing price, but to no avail. So we're off the market, we're gonna try again in March/April when we have 20% down, so maybe we'll have a chance then....

good luck to you though.
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Old 08-02-2009, 08:44 PM
 
Location: wannabeinkentucky
862 posts, read 1,496,997 times
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Quote:
Originally Posted by snobdrblinkchik View Post
The conditions of the houses was no problem. All of them were able to pass the VA guidelines. Unfortunately VA loans take longer to close (about 60-90 days) so they aren't favorable.
Doesn't that depend on who you get your loan from, not the fact it's a VA loan? Ours is a VA loan and the only good thing I can say about our realtor was we offered and were accepted on the January 4, inspected on the January 5, closed on the January 19, and due to a clerical money error and it being Friday got possesion on the January 22. In 2007.
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Old 08-03-2009, 02:20 PM
 
4,940 posts, read 12,438,918 times
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Quote:
Originally Posted by snobdrblinkchik View Post
The conditions of the houses was no problem. All of them were able to pass the VA guidelines. Unfortunately VA loans take longer to close (about 60-90 days) so they aren't favorable. We also lost out to cash offers. We submitted about ~25 offers with many of them $20k-$30k more than listing price, but to no avail. So we're off the market, we're gonna try again in March/April when we have 20% down, so maybe we'll have a chance then....

good luck to you though.
You should be able to close a VA in 30 days, escpecially if you all ready have a certificate of eligibility.

It is true that you can't buy a home that doesn't meet VA standards. The are a lot of foreclosures that won't qualify for FHA or conventional either unless they have some kind of 'fix up' component.
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Old 08-03-2009, 07:48 PM
 
23 posts, read 146,355 times
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Quote:
Originally Posted by TimtheGuy View Post
You should be able to close a VA in 30 days, escpecially if you all ready have a certificate of eligibility.

It is true that you can't buy a home that doesn't meet VA standards. The are a lot of foreclosures that won't qualify for FHA or conventional either unless they have some kind of 'fix up' component.
Yes, we already have a COE and everything was good to go. I've been told by multiple mortgage brokers and realtors that VA loans take longer to close. Maybe it's because of the area I live in-southern california. There are lots of military bases so maybe there's a larger volume of VA loans...
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Old 08-03-2009, 08:36 PM
 
Location: Fayetteville, NC
1,490 posts, read 5,411,255 times
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I can't imagine 60-90 days for VA Loans.

Granted VA loans are 90% of our business in my market. The fastest we closed on a VA deal was 14 days last year. They average less than 30 days in my market.

We have had problems as I stated above with REOs.
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Old 08-03-2009, 08:40 PM
 
Location: Sierra Vista, AZ
16,483 posts, read 21,642,281 times
Reputation: 8658
Quote:
Originally Posted by snobdrblinkchik View Post
We were pre-approved for a VA loan and looked at A LOT of houses, given more than a handful of offers of equal or more than list price. Of all the houses, we've gotten a reply on one and the rest never replied back. Our realtor said that the banks that own the houses don't want to deal with VA loans, and would rather wait for other offers/loans.

So my question is: Is anyone else having this same problem? I knew that buying a house isn't fast/easy, but i never thought that out of 8+offers only 1-2 would actually reply back.
Go to VA.Gov then to mortgages, find thhe REO link and find the houses the VA has for sale.
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