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Everything you’ve described is an inspection. Not an appraisal.
I agree and you should be right and those should be inspection issues, not appraisal issues, however, they have been creeping into appraisals lately as condition issues that need to be cleared. Not just VA appraisals though... ALL appraisals.
The only reason to even demand a down payment is that the risk of the house not appraising is high, so the down payment is there to cover the difference. A no down payment person could have the money, but taking the house off the market for that long from contract to appraisal is something many people will not want to do. Other than that, I cannot think of a reason why a down payment would matter.
Quote:
Originally Posted by Spottednikes
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 VA uses the same appraisers as everyone else. Not sure how much "pickier" one would be as a friend who got a conventional still had the appraiser nit pick some things, including some absurd paint chips of all things that wanted touched up.
Your closing cost statement is incorrect.
Quote:
Originally Posted by LynnKrause1
Are the VA buyers married? If not the significant other's credit and income is not counted.
Only if the spouse is included in the loan. my was not, her credit nor income was even reported.
My husband and I used a Va loan , we can afford to pay for the house outright. But we prefer to leave the money invested. We purchased our last house with a VA loan the appraisal came in within 4 thousand of the seller wanted. It was priced a little high for the area, but both realtors made a concession and it was within 2000 of what the seller wanted and he took our offer. We qualified for 3 times what we spent on this house. But we didn’t want more than we felt was necessary. Our credit score was in the 800’s. We also relied on the VA to protect us since we. Moved to an area we didn’t know other than what we read on the internet.
I would take a VA loan if I sold a house in a heart beat.
I agree and you should be right and those should be inspection issues, not appraisal issues, however, they have been creeping into appraisals lately as condition issues that need to be cleared. Not just VA appraisals though... ALL appraisals.
Most lenders who sell their loans on the secondary market underwrite to national standards no matter what the loan type.
I have been direct party to 3 VA/TXvet transactions in the last 3 years. None of them have “crept” into the inspection, outside of standard habitability that is covered under every FHA loan I’ve ever seen.
Good. If you haven't had appraisal issues like what we're talking about creep in, you're probably not buying a starter home at the low end of the price range.
Appraisers call out peeling paint or failing roofs or rotten siding. They call out if there are no GFCI outlets in kitchens and baths, always. House has to have smoke alarm outside each sleeping space. Like I said... it's not just VA... this is true on any loan.
Appraisers are getting mission creep all over. Nothing that they are calling out is bad really... unless they are issues the two parties had already agreed to handle another way at inspection response but when it's called out on appraisal it must be dealt with prior to close. That can cause a lot of scrambling and angst to get things done at the last minute sometimes.
OK, you've got Apprentice Appraisers, Appraisers, Board Certified, and then FHA, and then VA certified appraisers. (Side note: It's darn near Grad School to get all those certifications, and the pay SUCKS. Appraisers are literally a dying breed.)
Conventional appraisals are more lenient on cosmetic issues, or even having appliances in the property at the time of close.
FHA (due to the lumped in MIP) and VA loans tend to be closer to 100% of the value of the home (even without the Funding Fee, but with it, the lender walks into the deal upside down.) So, worst-case scenario, they foreclose immediately. They don't want to dispatch a contractor to fix all those "little" things.
So yes, FHA and VA are significantly more stringent, when it comes to "Subject To" valuation, wherein repairs are called for to be completed prior to close. Or shortly thereafter, with escrow holdbacks.
Oh, and if the co-borrower is not married to the Veteran, it triggers a down payment equal to 12.5% of the purchase price.
So I guess I'm modifying my earlier post: if the house is in good shape, I think it's incredibly bad karma to pass over a VA offer based solely on the loan type.
So I guess I'm modifying my earlier post: if the house is in good shape, I think it's incredibly bad karma to pass over a VA offer based solely on the loan type.
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.
This is what we call confirmation bias.
You are incorrect. The appraisers may be the same but the lending requirements for the loans are different for a conv, fha, and va. The va appraisers (and fha, although we arent discussing those) are absolutely more strict than for conventional. I'm a realtor and deal with this on a regular basis. Thecappraisals during an fha and va loan will require certain items to be repaired as a condition of closing. I just closed a loan last week using conv financing, that had a huge hole (about 2'x4' ), and no stove on a conv loan. No gfci outlets in garage. No conditions to repair before closing. Had it been an fha or va loan, they would have required them to be corrected prior to closing.
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If you haven't had appraisal issues like what we're talking about creep in, you're probably not buying a starter home at the low end of the price range. 
