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I'm having a hard time dealing with this situation:
I get preapproved for a VA loan through one of the major VA lenders. I ask if I can use a grant that's for veteran first time home buyers that I'm eligible for ($5000 free and clear.) I think the only thing the lender has to do is verify the loan and supply escrow account info 2 weeks before closing and the money gets deposited—doesnt need to be payed back and does not put any lien on the loan or home. Again, it's a free and clear grant.
So, after a few days the lender says I cannot use the grant because they wont be able to sell the loan in the secondary market if I use the grant. They offered me $1000 towards closing costs because of my trouble, but it still just doesnt make any sense to me. If I stick with this lender I'm not able to use the $5000 grant but they'll give me $1000 towards closing.
Does anybody have any feedback on this? Thanks in advance.
Do you have mortgage brokers in your area who are very very familiar with the different loans? We have some that have blinders on, are focused on a few slots and that's it. And at least one that's brilliant and creative . You need someone thinking, experienced and engaged.
I'm having a hard time dealing with this situation:
I get preapproved for a VA loan through one of the major VA lenders. I ask if I can use a grant that's for veteran first time home buyers that I'm eligible for ($5000 free and clear.) I think the only thing the lender has to do is verify the loan and supply escrow account info 2 weeks before closing and the money gets deposited—doesnt need to be payed back and does not put any lien on the loan or home. Again, it's a free and clear grant.
So, after a few days the lender says I cannot use the grant because they wont be able to sell the loan in the secondary market if I use the grant. They offered me $1000 towards closing costs because of my trouble, but it still just doesnt make any sense to me. If I stick with this lender I'm not able to use the $5000 grant but they'll give me $1000 towards closing.
Does anybody have any feedback on this? Thanks in advance.
Where are you buying? We can try to find a reputable lender who uses the grant program.
A few years ago I dealt with another lender but had issues with them. This time I went with veterans united. All my research leads to them being a pretty stand up company. Even any complaints I've found have been taken care of and any money lost was reimbursed by VU. So there's security there imho. Another thing I like about them is that everything is handled in house (lenders/ underwriting/ etc.) So that's why I'm trying to stick with them.
I've been bugging the crap out of my guy and he let me know that the VU lenders basically say no to the grants because there are so many of them (fed/ state/ county/ ect) and they dont want to get involved with them—that's why they would rather give a lender credit towards closing. They may or may not sell the loan on the secondary market so they avoid problems by avoiding grants all together.
I suppose if I want to stick with them, then I'm not going to get the grant. I haven't found any reviews or success stories for the dream makers grant so I guess I shouldnt be putting all my eggs in that basket either.
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