The reason they might have switched it...
1. VA has stricter property standards...and may have disqualified your property
2. FHA funding fee is 1.5%.....VA is 2.15% or 3.3% for 2nd users
They both have the same credit qualifications.....but with VA you need to qualify with 'residual income'.
Quote:
Originally Posted by UofMGrad92
We have a contract on our home with closing set for April 30. Today, we were told by our realtor that the folks who are buying our buyers home have had to switch from a VA loan to an FHA loan. While they are pre-approved, there was apparently some issue with the VA loan. My realtor indicated that the only issue is whether or not the April 30 closing date will be affected, although my realtor didn't think this was a must and only a possibility.
My question is, does anyone have any experience with this kind of thing? If a week out a buyer has to change loan types (VA to FHA), is it possible to keep the closing date? Is FHA less particular than VA normally? And is a delayed closing the only issue, or is this a red flag that the whole thing might fall apart? Delaying closing isn't a huge deal, but obviously having to go back on the market would stink.
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