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You said that... and then you said a lot of other things about VA loans and how they work that are just not true, so myself, and a couple other people, corrected you on those details. Because the details matter. Why do I have to keep repeating myself on this?
Or No? I like the topic in general. What if others want to talk about it?
Nothing you have tried to "educate" on has actually addressed my point... that a zero down loan can put a buyer in a weak negotiation position. Please feel free to discuss that from your perspective as a realtor with an interest in seeing the sale go through so that you can get paid.
Oh wait... maybe that's not something you want to do. Maybe it's better to avoid that topic because it's icky. All buyers are created equal. Sellers should not care at all if they can complete a transaction. Right?
Nothing you have tried to "educate" on has actually addressed my point... that a zero down loan can put a buyer in a weak negotiation position. Please feel free to discuss that from your perspective as a realtor with an interest in seeing the sale go through so that you can get paid.
OK! Upon receiving the offer I would do a little work to find out a little more background. I would look for the Pre-Approval or Pre-Qualification letter that should have come along with the offer and see if it is recent, personalized for this offer, and from a local lender I recognize. If it is, I call them. If it isn't... I call the buyer's agent first to try to find out what I can about how well qualified the buyers are, who this lender is, and then I call the lender and ask some questions about the buyers qualifications. Understand, there are numerous fair housing and privacy laws in place to protect buyers but they are allowed to tell me quite a bit about the buyers employment and background without breaking any rules. I can know that they are both professionals and employed and if they just sold a house they had quite a bit if equity in. I might learn something about their plans that will put their offer in context.
And then I give that information to the client. And the client will make their decision.
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Oh wait... maybe that's not something you want to do. Maybe it's better to avoid that topic because it's icky. All buyers are created equal. Sellers should not care at all if they can complete a transaction. Right?
What the HELL are you talking about now? There isn't one topic here I find too "icky".
And actually, one thing we can do, as seller's agents, if we are uneasy about a loan, is ask them to go to one of our trusted lenders for approval. They don't actually have to use that lender, but it is an option we have used when a buyer brought an approval from a lender we knew to be bad or not well organized. If my lenders are willing to give them a letter, then they're probably qualified. I trust them more than strangers. Hopefully they will choose the better lender. There's some bad ones out there.
Buyers are NOT created equal. Some are better qualified than others. That is absolutely true. That isn't the problem with what you said all these pages past. It's the places where you made up wrong facts that were the problem.
But then... I have said that before. A few times.
Last edited by Diana Holbrook; 08-05-2019 at 09:26 PM..
As an investor I understand not wanting to sink all available cash into a property. But I disagree that one should have ZERO "skin in the game" in a home sale. I'm sorry. I don't agree with that and never will. It paints a picture of just-getting-by that is undesirable for a seller. And in many markets a zero down payment loan is not attractive as conventional financing, nor is conventional as attractive as cash. That's just reality. Buyers who have the funds will often change vehicles of they want to position themselves better in a multi offer situation.
I'm sure a lot of people put very little or nothing down and do just fine. But as a seller, I don't consider such offers as highly as one which has a larger down payment or cash. That's me. Others can disagree. Frankly it has served me well over the years. Any loan with zero down is not appealing to me as a seller...VA or anything else. I don't discriminate against one type. I just wait for a better offer. Not everyone has that luxury. If my buyer who offered with a zero down loan really has the money they will come back with at least 10-20% down. That's what makes us comfortable that they have enough funds to get to the finish line. Mortgage insurance is a waste. All of this "it's great to hear that buyers put nothing down!" serves the REALTOR who does not have to pay the mortgage insurance and can push a sale through when it's barely affordable for the buyer. Sellers get to choose what offer to accept. I have been doing this long enough to see some really really shaky offers gladhanded by enthusiastic realtors.
And less than 600 credit? Uhhhh...withh 660 being the baseline you are looking at a very high interest mortgage which likely requires a significant down payment. That's what I am calling "not decent"... The mortgage equivalent of a very high interest credit card with an annual fee and predatory collection practices. I don't understand why the horn blowing about not having money to put down and bad credit that is going on is being defended here. Glad to see that someone is at least maintaining an older home.
As I said, what I do works well for me. I understand that others disagree. But name calling won't change my mind. It's a good thing I'm not in lending. There would be quite a few people who squeaked by that would not be closing.
Actually, I'd be willing to bet that this is all fiction. I just look at your post history and realize you fish quite a bit.
I've bought 3 homes using my VA loan, with nary an issue. While I had the money in my account in 07, 11 and 14 for the down payments, it was much easier to keep that liquid to do stuff I wanted after the close and .... ohhhh, this'll really chap your hide, take advantage of the TXVet discounted rate. In '11 it was 2.65 on a 30 year with no down and no PMI. Know what that meant? I had way more purchasing power than the competing offers.
But hey, cool story. It's a good thing your only business is posting what ifs online.
VA appraisers are typically pickier about items like fenced pools or door alarms, and which way gates open to pools, needing antisuction drain guards in pools, roof life left, gfci outlets, condition of siding/stucco, etc. So the seller could get stuck needing to make lender required repairs in order to close. Also the seller pays higher closing costs with a VA loan because there are some things they wont allow buyer to pay.
VA appraisers are typically pickier about items like fenced pools or door alarms, and which way gates open to pools, needing antisuction drain guards in pools, roof life left, gfci outlets, condition of siding/stucco, etc. So the seller could get stuck needing to make lender required repairs in order to close. Also the seller pays higher closing costs with a VA loan because there are some things they wont allow buyer to pay.
Thank you for this accurate depiction of the other side of the coin.
VA appraisers are typically pickier about items like fenced pools or door alarms, and which way gates open to pools, needing antisuction drain guards in pools, roof life left, gfci outlets, condition of siding/stucco, etc. So the seller could get stuck needing to make lender required repairs in order to close. Also the seller pays higher closing costs with a VA loan because there are some things they wont allow buyer to pay.
The appraisers used for VA appraisals are THE SAME appraisers as every other loan type. Appraisers aren't specialists, nor are they employed by lenders or the VA. They all do all the loan types, that's how they stay marketable.
I'm not from "pool country" so I will pass on commenting about the pool issues, hopefully someone else will speak to them.... but the others you mention.. roof life, GFCI outlets, and condition of siding/stucco are conditions of ANY loan appraisal nowadays... VA/FHA, or CONVENTIONAL. You can't get a conventional loan either if the roof is shot or there are no GFCI outlets in the kitchens and baths and outdoor areas. Or peeling paint, or water heaters that aren't strapped to the wall, or any of the other defects we've seen appraisers call out in the last couple of years. The list is growing, but not the VA list, the WHOLE list.
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Originally Posted by emotiioo
Thank you for this accurate depiction of the other side of the coin.
This is what we call confirmation bias.
Last edited by Diana Holbrook; 08-06-2019 at 10:29 AM..
VA appraisers are typically pickier about items like fenced pools or door alarms, and which way gates open to pools, needing antisuction drain guards in pools, roof life left, gfci outlets, condition of siding/stucco, etc. So the seller could get stuck needing to make lender required repairs in order to close. Also the seller pays higher closing costs with a VA loan because there are some things they wont allow buyer to pay.
Everything you’ve described is an inspection. Not an appraisal.
Why do you care how much they put down. I will say that the VA loan will have more stringent requirements on repairs.
Unless the house is a complete fixer, VA shouldn't be a problem. I've bought two different 1950's houses that needed the typical repairs a 50-60 year old house needs on VA loans with absolutely zero issue.
Actually, I'd be willing to bet that this is all fiction. I just look at your post history and realize you fish quite a bit.
I've bought 3 homes using my VA loan, with nary an issue. While I had the money in my account in 07, 11 and 14 for the down payments, it was much easier to keep that liquid to do stuff I wanted after the close and .... ohhhh, this'll really chap your hide, take advantage of the TXVet discounted rate. In '11 it was 2.65 on a 30 year with no down and no PMI. Know what that meant? I had way more purchasing power than the competing offers.
But hey, cool story. It's a good thing your only business is posting what ifs online.
This was exactly our position a few months ago when we closed on our house. We had the cash to put 20%+ down, but we didn't, as that let us stay liquid to do things like siding repair/repaint, tree removal, concrete, etc, right away without having to borrow on a different loan vehicle. The surprise $4K plumbing bill 3 weeks after we moved in was much less of a strain since we still had cash reserves in the bank, too.
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