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As a seller I don't entertain zero down loan offers.
And if that is as far as you went, that is an opinion you are entitled to have... even if it might be occasionally unfair when given the bigger picture of a buyer's financial situation where there might be good reason for doing it that way.
We keep correcting other statements where you are just plain wrong... and I haven't seen you acknowledge that yet.
And if that is as far as you went, that is an opinion you are entitled to have... even if it might be occasionally unfair when given the bigger picture of a buyer's financial situation where there might be good reason for doing it that way.
We keep correcting other statements where you are just plain wrong... and I haven't seen you acknowledge that yet.
It'd be nice if you would.
I'm not wrong in saying that zero down offers give some sellers serious pause. I'm a seller. I know lots of people who are professional flippers/investors and home owners. There's a concern among many (again I am certainly not the only person who has expressed this opinion on this forum) that zero down loans are shaky in terms of closing on time. You are welcome to hold a different opinion. In my personal experience with 13 properties sold on two occasions did I accept a zero down loan and neither property closed on time as the buyers DID NOT have the funds to pay for the property. Period. My sample size is small but this is my personal experience. It's not wrong. It's colored my policies going forward.
I don't know why this is such a hot button issue. I mean, who cares about what I think? If you did offer on one of my properties and I turned down your offer you would have the option to change loan vehicles/pay cash/walk. Again as a seller it's my prerogative to reject or accept on any number of grounds. I'm not here grousing that my property isn't selling. I'm using a strategy that has worked well based on experience. My experience is not more correct or incorrect than anyone elses and I will happily share what works for me. Others are free to disagree or share what works for them.
I don't know why this is such a hot button issue. I mean, who cares about what I think?.
I don't really care what misguided personal opinions you hold, emotiioo. I do care when you're putting wrong information on a public forum that might do harm to good veterans out there buying homes.
But I think we've done a pretty good job on this thread, of setting the record straight on how wrong you are on many of your 'facts'... your stubbornness has just given us a chance to repeat it a few times to be sure.
I don't really care what misguided personal opinions you hold, emotiioo. I do care when you're putting wrong information on a public forum that might do harm to good veterans out there buying homes.
But I think we've done a pretty good job on this thread, of setting the record straight on how wrong you are on many of your 'facts'... your stubbornness has just given us a chance to repeat it a few times to be sure.
Good day.
Good heavens how am I harming veterans? I'll happily sell to any veterans who pay cash or put down 20% with conventional financing. Again, this is not about. VA loan. It's about any loan with nothing down. No veterans are excluded from my properties. So tired of painting with a broad brush in this. Not all veterans even use their VA loans. This forum acts like they are barred from any other type of financing. That's what is missing in a of this "setting the record straight." Veterans who have resources, like anyone else, are welcome to pay in a variety of ways. It's like a business saying " I don't take checks'. I don't take zero down loans. You can use a different payment method. That's all.
Any realtor worth their salt can counsel their clients on how to present their strongest possible offer. Sometimes the initial go to is not what wins the property. This is not a moral dilemma. It's about getting your client into the house they want, right? So if you had a shaky looking offer that was backed up by serious cash,. and the seller asked for last and best, it would be in the best interest of the buyer to revamp their offer to negate seller concerns. But if you have no option as a buyer because you are only able to secure a specific type of loan, you may not be in a strong negotiating position.
Good heavens how am I harming veterans? I'll happily sell to any veterans who pay cash or put down 20% with conventional financing. Again, this is not about. VA loan. It's about any loan with nothing down. No veterans are excluded from my properties. So tired of painting with a broad brush in this. Not all veterans even use their VA loans. This forum acts like they are barred from any other type of financing. That's what is missing in a of this "setting the record straight." Veterans who have resources, like anyone else, are welcome to pay in a variety of ways. It's like a business saying " I don't take checks'. I don't take zero down loans. You can use a different payment method. That's all.
See we could have ended there, but then you go and say something really really dumb and we have to keep going because it might confuse people otherwise.
There is NOTHING about VA loans that require them to be zero down. You act like veterans are barred from putting any money down and they're not. A veteran buyer can put down as much as they want, as much as makes sense to them. Zero down is just an option.
There is probably NO conventional loan that could get a veteran terms that would be better than their VA loan benefit. The terms, the interest rate, EVERYTHING ABOUT IT makes better business sense.
So if you tell a buyer to go get a conventional loan when he could get a VA? That's the point where you'd try to get a buyer to do something really stupid just to appease you. And that's too bad.... for you. Because I hope they tell you to pound sand.
I don't care so much about correcting you, because I predict you'll respond in a way that will fail to acknowledge you were wrong on this.... but I do care about correcting the record for everyone else reading this so there's no confusion, so here we are.
Hi,
I am selling a house and one buyer wants to use VA loan with 5% down payment.
The other buyer is with conventional loan with 20% down payment.
Which one should I use? Is VA loan approval rate 100%?
Thank you!
This was the original question. Let's dial it back to that.
Of these two options number two is a no brainer for me.
Again I didn't say I hated VA loans, veterans or their families, etc. I said I don't like zero down loans. In the OP, tye VA loan is the weaker offer. Were they two offers with 2O% down, well it would depend on which buyer presented the easiest, most desirable contract with additional terms that matched what we were looking for.
I unilaterally reject zero down loans. Many on this forum want to conflate that with VA loans. I can say from experience that I never have had an offer of anything above 10% down with a VA loan but I am sure that others have different experiences. No down payment, no matter what the lending vehicle, is a weak offer in my eyes. Bigger down payment or cash? Stronger/strongest offer.
I don't relish dealing with the red tape of federal loan programs. I'm sorry if that's offensive. I don't like dealing with buyers who are barely able to afford a home but refuse to downgrade/rent longer and cost me time and energy. Again it's probably a good thing I'm not a lender.
In short, like many sellers, I want easy transactions. My experience has been very informative
See what I mean.... every time you are shown to be wrong, you just deflect and change the subject.
This was mostly about you being unnecessarily unkind to the poster who checked in yesterday, not the original post from last year!
And then you go on and on about zero down loans again, even though evidently the post you quoted was reportedly putting 5% down. But even that wasn't really the question, the question was, are they guaranteed to be approved. No. They're not.
Your post does bring up a nuance that has sometimes happened with buyers regarding loan and down payment needed. If they are buying a $240K place and their loan limit is $200K and they have to bring 20% down to qualify for that, even if they currently have it, they are in a much more precarious position than the buyer who qualifies for $240K with zero down. Why? The higher value buyer actually qualifies for a lot more money and only has to show up with a pen in his hand to close. The guy who needs to bring $40K to the table has that much more potential for things that can go wrong before closing. Money disappears, gets spent on car repairs, furniture, unexpected expenses.... They thought they'd have enough.... but.... Uh oh.... what now? The zero down guy only had to remember how to sign his name to close.
See what I mean.... every time you are shown to be wrong, you just deflect and change the subject.
This was mostly about you being unnecessarily unkind to the poster who checked in yesterday, not the original post from last year!
And then you go on and on about zero down loans again, even though evidently the post you quoted was reportedly putting 5% down. But even that wasn't really the question, the question was, are they guaranteed to be approved. No. They're not.
Your post does bring up a nuance that has sometimes happened with buyers regarding loan and down payment needed. If they are buying a $240K place and their loan limit is $200K and they have to bring 20% down to qualify for that, even if they currently have it, they are in a much more precarious position than the buyer who qualifies for $240K with zero down. Why? The higher value buyer actually qualifies for a lot more money and only has to show up with a pen in his hand to close. The guy who needs to bring $40K to the table has that much more potential for things that can go wrong before closing. Money disappears, gets spent on car repairs, furniture, unexpected expenses.... They thought they'd have enough.... but.... Uh oh.... what now? The zero down guy only had to remember how to sign his name to close.
There's some really sensitive folks on this forum if I'm being "mean."
Of course a buyer should not be maxed out on their loan for a strong offer. Banks will lend a lot more than people can truly afford (mortgage crisis anyone?) We are sliding back into that habit again. In my experience realtors often encourage aspirational purchasing instead of realistic purchasing. But that's another thread. You should see some of the places we have been shown. Far far above what was reasonable to spend.
I have always complained about zero down. Not specifically VA . But I do understand that is confusing given the thread topic.i did go off on my tangent, yes. I still stand by it nonetheless.
A VA loan is a mortgage that is made by private lenders, but partially backed by the Department of Veterans Affairs.
They don't have their own appraisers.
The process is not any more cumbersome any more, than any other home appraisal. Its the same appraisers as any other loan. The house is either worth the money, or it isn't.
Even buyers who are making big down payments aren't often thrilled to pay more than market value for a home.
A VA loan is a mortgage that is made by private lenders, but partially backed by the Department of Veterans Affairs.
They don't have their own appraisers.
The process is not any more cumbersome any more, than any other home appraisal. Its the same appraisers as any other loan. The house is either worth the money, or it isn't.
Even buyers who are making big down payments aren't often thrilled to pay more than market value for a home.
The Department of Veterans Affairs is a cabinet level federal agency. The above is just whitewash.
My husband worked as an attorney for the fed for many years so please don't try and pretend that the Veterans Administration is not a federal entity and by extension that VA loans are not federal lending vehicles.
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