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Old 02-16-2019, 04:28 AM
 
Location: Northern Maine
9,679 posts, read 14,601,892 times
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As to the OP question, it depends on two things; the market and the buyer's conditions. There are places in America where the local industry has collapsed. The population is declining. Even schools may close. lots of homes are on the market at prices that will never sell, but the seller is upside down on his mortgage. Some of these sellers just walk away. The bank forecloses. Some banks dump these dead loans to auction companies. I know of a beautiful garrison with hardwood floors throughout, full basement and the 2 car garage had been converted to an awesome media center. I was offered the listing. I refused it, but I agreed to put up their auction signs and take photos for the auction company. It was an absolute auction with no reserve. It sold for $18,000 cash.

In Washington County, Maine, brokers ask for a two year listing from the seller because it is not going to sell in one year.

Again as to the OP: if you are in a stable or growing market, stand firm and do not accept an offer with a laundry list of conditions. Those conditions do NOT constitute a full price offer. If your broker gripes, tell him to foot the bill for the conditions. He'll smarten up.
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Old 02-16-2019, 08:11 AM
 
Location: SW Florida
9,567 posts, read 4,330,974 times
Reputation: 19926
Quote:
Originally Posted by Seduflow View Post
yup! classic case of them having no money

I bought my small house with a VA loan in August of 2017, nothing down and put the closing costs into my loan. Make my payments on time every month. While I had the income I didn't have much savings as rentals in my area are quite expensive. Now my payments are less than I was paying for rent by almost $300 and I have a fenced in yard and no neighbors above me. A lot of people make assumptions about a seller if they use FHA or VA financing. Never assume anything/
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Old 02-16-2019, 08:21 AM
 
Location: Cary, NC
32,399 posts, read 56,627,170 times
Reputation: 31123
Quote:
Originally Posted by chiluvr1228 View Post
I bought my small house with a VA loan in August of 2017, nothing down and put the closing costs into my loan. Make my payments on time every month. While I had the income I didn't have much savings as rentals in my area are quite expensive. Now my payments are less than I was paying for rent by almost $300 and I have a fenced in yard and no neighbors above me. A lot of people make assumptions about a seller if they use FHA or VA financing. Never assume anything/

We have had multiple threads here about superstitions regarding financing and down payments.

You are one of the many, many success stories one can easily see if one drops clinging to ill-founded preconceived notions.
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Old Yesterday, 12:52 PM
 
Location: Denver CO
19,902 posts, read 10,816,009 times
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Quote:
Originally Posted by MikeJaquish View Post
We have had multiple threads here about superstitions regarding financing and down payments.

You are one of the many, many success stories one can easily see if one drops clinging to ill-founded preconceived notions.
I don't disagree that there are sometimes a lot of assumptions at play in these types of discussions.

However, personally I do not see VA and FHA as the same. VA loans are a benefit that someone has earned via their service to their country and their financial status is irrelevant to that - you could have enough money to pay 100% cash, but still decide to use your VA benefit, and why not?

FHA is little different because esp. now with the downside of lifetime MPI, people who can qualify for a better program will usually be better off taking a different option. So I think it's not unreasonable to assume that an FHA buyer may be in a more precarious financial position and there is a greater chance that a financial hiccup could impact closing, plus potential inspection issues. The odds are not huge, but two equal offers (for all terms, not just the amount) and one is FHA and one is conventional? I think the majority of people are going to go with the person getting a conventional loan.
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Old Yesterday, 05:38 PM
 
Location: Cary, NC
32,399 posts, read 56,627,170 times
Reputation: 31123
Quote:
Originally Posted by emm74 View Post
I don't disagree that there are sometimes a lot of assumptions at play in these types of discussions.

However, personally I do not see VA and FHA as the same. VA loans are a benefit that someone has earned via their service to their country and their financial status is irrelevant to that - you could have enough money to pay 100% cash, but still decide to use your VA benefit, and why not?

FHA is little different because esp. now with the downside of lifetime MPI, people who can qualify for a better program will usually be better off taking a different option. So I think it's not unreasonable to assume that an FHA buyer may be in a more precarious financial position and there is a greater chance that a financial hiccup could impact closing, plus potential inspection issues. The odds are not huge, but two equal offers (for all terms, not just the amount) and one is FHA and one is conventional? I think the majority of people are going to go with the person getting a conventional loan.
I would not differentiate offers significantly between FHA or VA.

And, in my experience, VA, FHA, or Conventional all are just about equally likely to close.
That is all I care about: Is there a red flag that the buyer brings to the party, that makes it more likely the transaction will not close?
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Old Today, 10:06 AM
 
Location: NH Lakes Region
345 posts, read 1,401,167 times
Reputation: 415
I just put a townhouse on the market (in MD area) and within a week, my first offer was firm for the asking price (VA loan), no down payment, with a request for slightly under 3% for closing help and $2.5K towards repairs. I requested the repairs to drop to $1.5K and that was accepted. The repairs, in this care, pertain to the Appraisal, not the Homeowner's Inspection, so the risks on that are much lower... these are safety and structural defects. It's been a well-cared for rental for several years, and since I had a homeowner's inspection done myself a year prior to sale and had 90% of the punch list repaired prior to putting it on the market, there should be no valid issues. The resulting "payout" will be within what I was expecting for the house sale (and appraisal comes in with the sale price), so I consider this is a good offer, and I can move on. My agent got background information on the sellers and contacted the lender to see if it was solid, which it appears to be. Now I wait for the requested 30-day closing to come to fruition.

Since I bought this property almost 30 years ago, used a VA loan with no down payment and managed to not only make the payments, but throw whatever extra I had toward the loan and pay it off almost 10 years early, I agree that stigmatizing some types of loans based on misconceptions can be unwise. This is a good starter home, not a high-end showplace, and it's good to see people buying what they can afford.
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