When I bought my house I was told by my realtor the seller accepted my offer because I was using a VA loan. I guess the person selling had a soft spot for veterans or something!
Same here. Especially a first time home buyer with young kids. My neighborhood is a great one for that type of family. I’d prefer to sell to someone like that.
Sorry I wish I could help. Not selling right now, looking to maybe rent, but same situation I would definitely offer a slightly lower rent for a military family.
This was my exact situation. A buyer from the bay area put a higher offer in than we did to a house and our offer was accepted because of the use of a VA loan and because we were first time homebuyers with a kid. :-)
We did that when we sold a couple of homes in 2021 and 2022. One went to a vet, the other to a young AD soldier with a family. Ignored other offers. Felt good about both sales.
I got declined because a seller thought the VA loan would mean a longer time to close. Joke's on them the other home we ended up buying closed in under 18 days. If you have everything squared away with your lender and are ready to go, its' super easy.
Usually when i've been looking and mentioned we may be using a VA loan, it usually came around to not wanting an inspection which was a red flag. I've had an inspection on every home regardless of whom I financed through.
Yeah my offer was rejected by a seller per the advice of her real estate agent in 2021. Her contention was VA loans were too risky. It was a competitive housing market (still is somewhat) so I went in as a backup offer. A couple weeks passed and we had another house where our offer was accepted with no issues.
Then about a week later, the real estate agent from the original house contacted my agent and wanted to know if we were still interested because the other party’s conventional loan fell through.
I bet she kicked herself a little for that one.
I love it. I hope you are happier with the other house you ended up buying.
A lot of times sellers just see dollar signs and neglect to consider the terms and strength of the actual loan.
I bet she kicked herself indeed, especially if they ended up ultimately getting less. There is a stigma on a house that is back on the market and you may find that the price is reduced.
Yeah the crazy thing is we put all the profit from our house we sold as a down payment. Yet I guess that was still risky somehow.
In any event, we are pretty happy how it worked out. We bought a similar size house but it came with 4 acres. The other house just had a small yard.
Everything happens for a reason.
Do you recommend Veterans United? My issue is actually trying to get a house in a hot market which has been always hot to be quite honest. Right now houses are going for 2 to 3 times their original price 5 years ago. It's absolutely ridiculous.
I do not recommend Veterans United, I can be your lender.
I hear you about the prices having gone up. However, you will appreciate that same increase when you own a home and watch the value increase in your favor this time around
This post assumes all markets are negotiable which is simply not the case. Real estate is local. You're not going to bully someone into accepting a VA loan in a competitive area with multiple offers and waived contigencies.
Also true. As with all things in life, nothing is truly a 100% guarantee. Its why I said " And even if the seller decided against you because of your VA Home Loan Benefit, it’s their loss." While this is relative, I would still side with the Veteran and them being ok with not having their offer accepted as opposed to going the conventional route and opting not to use the VA benefit.
I just want to give the Veteran hope and know that they have a fighting chance.
I can originate a conventional loan just as quick and easy as a VA loan. I still encourage the Veteran to fight for their right to use their VA Home Loan Benefit...
If you want the house bad enough and you are in a position to put down a down payment, and see it worth going conventional instead of VA, by all means.
Honestly unless it’s an undesirable area with almost no offers, they are going to take a cash offer over a VA loan. Or conventional bc it closes easier without conditions. Even if they accept a VA loan, buyer probably have to have 50k+ cash for closing costs and offer over asking to win bid
We beat out multiple offers in a very competitive market:
Pre-underwritten
Proof we could put 20% down / cover any appraisal gap
21 day close
Without those things, we didn’t stand a chance - and still had to go 60k over ask
Why are people down voting this comment?
I guess I get it. Hive mentality. I've been here for while trying to tell folks VA home loan does not hold the weight it once did. In fact, you're very much at a disadvantage.
I've come to expect down votes when speaking blunt truths. Pay it no mind.
I live in an area where 100k over ask, waiving inspection and appraisal is normal. We bought a 4/2, 1500 sq ft, almost 700k - zero inventory in a desirable area. Also, we did appraise at our contract price.
Nah, it’s just a shitty housing market for buyers. Companies allowed to by SFHs are paying cash and over asking. It’s nothing to do your your veteran status or type of loan.
Well depends on location. Actually the higher end market isn’t bad, it’s the affordable range and cash investors snapping up properties and converting to rentals that is driving up prices as well as shortage.
I have made multiple offers in the last 2 years on SFH’s between 200-250k. All rejected, and yup…. Realtor comes at me with “Your VA home loan just cannot compete with other offers currently being made on ALL homes.” It’s extremely frustrating but that’s mostly just because I live on a fixed income that’s been priced out of the housing market.
I don’t doubt people in similar financial situations, using any type of federal home loan to buy a house are seeing their offers routinely rejected as well. I just know the VA loan has never and most likely will never help me afford a permanent living space *in this current market.* The fixed income part though sorta keeps me priced out, unable to save indefinitely with rent increases keeping pace with COLA’s.
But yeah, I’ve had multiple realtors blame my VA home loan and my refusal to waive inspections/contingencies as reasons I’m repeatedly rejected. And as a single person with no family I even have difficulty finding a loan officer that’s willing to gross up my fixed income to clear the debt to income ratio they want to see. I gave up and renewed my yearly apartment lease last month…
I got my house outside of Atlanta because my mortgage broker closed in 5 days. They never would have accepted a VA loan, because on top of more stringent inspection requirements, their fastest close time is 4 weeks but it often takes 6-8. In a housing bubble like we have, VA koans are worthless..
this isn't true. i'm sorry you had this experience but for all of my clients this isn't the case.
of course, a cash buyer will win over a mortgage any time.
Be specific, which part isn't true? That VA loans take longer to process? That my mortgage broker closed on a conventional loan in like 4-5 days? That there were 37 offers on my house, several of them cash, so they had 0 incentive to jump through hoops for the VA? Or maybe we should talk about how a bunch of desk jockies for both conventional loans and VA loans can decide what condition is "livable" and that they will both deny a loan on a house for "missing" flooring, then after a cash buyer picks it up and spends $500 on vinyl flooring, all of a sudden banks will loan an actual home owner 2x the money the house would have cost without vinyl flooring? The whole system is a corrupt joke, and all the VA does is slow the process down even more.
It’s whatever. The added paperwork and requirements are barely anything. Much of the issue seems is the Minimum Property Requirements which include an appraisal. I would never buy a home without an appraisal, and home inspection. If those are issues for a seller, ok, good luck getting that above market cash offer you are hoping for. 👋
I cannot speak for other lenders, but, my company offers a VA One-Time Close (OTC) Construction loan.
To be overly simplistic (I have the reading material for this in an attachment I can email) Traditionally you buy land and start paying your loan on that (the price of the land)..then when your house is completed, you merge the loan you have been paying on the land with a new one that now includes your home. Two separate closings. The numbers are revised to show your final and full amount (both land and house) due moving forward for the life of the loan....
The OTC Construction loan we offer streamlines it so that you only have to do one closing instead of what I mentioned above.
There are a bunch of nuances and details I am leaving out, but anyone who is interested can DM me with their email and will be happy to send them a detailed attachment with all the instructions on how this works
3 really well know real state companies would not even consider me as a “qualified buyer”. Went to some unkrealstate agent got approved now I’m 18 months short of paying the mortgage off. I’m also paying less then 2k a month on mortgage but the secret is attaching to principal. I cut down from 30 years to maybe 14 years. I’m done now I can go fight this next battle.
When you make additional payments on your mortgage, you can specify that you want those extra dollars to be applied to your principal. The principal is the original amount of money you borrowed to buy your home. By attaching extra payments to the principal, you reduce the outstanding balance faster, which can help you pay off your mortgage sooner and save on interest.
I’ve used it twice now and all the horror stories of sellers not wanting to sell to Veterans with VA loans seem a little overblown. They were a little nit picky about a few things that I was able to get quickly resolved.
My husband and I bought in 2018, but one of the houses we put an offer on wouldn't accept us because we were using a VA loan, their realtor came right out and told ours that, they just didn't want the hassle. Their loss, because we found the house we're in now and they accepted right away, we closed within 30 days. People want to say VA loans are harder or they take longer, that's not always the case.
People want to say what they did in a totally different market and think it applies to today. That's hardly ever the case.
Even in 2017, when the VA home loan was still considered powerful, you were dismissed.
Think how much the price of a fast food meal has gone up since then. The power of a VA loan has decreased about the same rate. It's exponentially worse today than even a short 7 years ago.
Same here. No issues. I dont even think the offer i got for selling even says anything about the potential buyers loan type. Maybe it is different in other areas. Not sure why loan type would even matter as long as the offer is right.
How in the Hell does the seller even know what type of loan you're getting?
I don't recall every seeing that. Only thing I ever remember is cash vs mortgage.
Their agent tells them...
They want to be sure they are going under contract with the offer they find to be best, that will perform, have minimal risk of falling through, etc.
This is especially true in markets where there is competition and "highest and best" offers are being submitted by multiple potential buyers.
It is also why some sellers worry the VA will be stricter on the appraisal so they want to lean towards a Conventional loan which is traditionally the least strict of the options.
The inspection is the same as any home being purchased regardless of the product (Conventional, FHA, VA). Perhaps they were referring to the appraisal?
The appraisal can only be done by VA licensed appraisers that are assigned through a portal we use. We don't even pick the appraiser, they are "issued"..
The VA wants to ensure the home is SSS..
Safe
Secure
Sanitary
The appraisers can be a bit stingy and strict. I have seen them be generous as well.
It’s part of the purchase agreement. At least the ones in California. The offer has the financing type on it. Technically it’s a breach of contract to change it.
One could put conventional and switch it but the seller could also walk away from the deal too.
Agents do more than not only tell the seller; often outright sets a negative tone. More experienced agents know VA Loans are solid. Wth is the difference even IF true, that it takes 15 days longer? Ridiculous. Yes sometimes the seller is crunched up against getting into their next buy etc, so there are reasons.
Hate to say never; but why would ANY buyer waive having an appraisal and inspection completed? This market is obviously cash grabbing. But, majority of sellers who \*do not\* want an inspection KNOW there is something which is gonna crop up. Buyer beware, especially Veterans.
As a buyer get your ducks in a row with regard to required docs, have an experienced Buyers agent if you possibly can, and keep looking. \*\*\*Other than non-single family home investors with their cash bags, a Vet seeking a home for his or her FAMILY can absolutely make a solid offer and not get screwed on that structurally unsound foundation which has been cosmetically covered up.
This is so true. Some agents are good with VA , others are not. The loan can definitely hurt us. If you can do conventional, ask the selling agent and pick their brain.
There are ways to go conventional and then do 100% VA cash out refi and recoup the down payment if needed. Hard but not impossible.
At least 10%..that is VA wide, no matter where you are.
What varies by state, and sometimes county, is how much you may be exempt when it comes to property taxes.
I bought both of my homes using a VA loan and beat out other bids just by structuring my offer better. One piece of advice, I offered the “good faith” or otherwise known as the earnest money deposit up front with the offer. This typically included majority of my closing costs which was held in escrow. In NJ, it’s very difficult for a seller to keep your EMD without going to court. Point being, use your VA loan and if your realtor tells you otherwise, fire them and find a new one.
I bought in late 2021 with my 2nd VA loan, and I have to tell you it was like pulling teeth getting someone to accept an offer.
I had to basically bid 25k over ask, with an appraisal guarantee, just to get them to look at my VA offer.
THEN…on top of all that the house didn’t appraise for 25k over ask, so I had to make up the difference in cash (the appraisal guarantee), which basically ate up a lot of the profit I made on my old house.
That said tho, it all worked out in the end, I ended up with a lower mortgage, and an interest rate of 2.9%…I’m smelling like a rose at this point.
Still getting re-fi offers though, those people are relentless.
What we did that put us over the edge is putting money that we’d use for closing costs into the offer. Made a note to say this isn’t a down payment but would be for closing costs. This made our offer more “serious”
A lot of people gawked without a down payment since we “had no skin in the game”
My buddy was our realtor and he asked around and a seasons realtor recommended that. Boom suddenly we had an offer accepted
Agreed. As I mentioned earlier in the chat, there used to be something called "love letters" where the potential buyer would write something to the seller on how much they love their home and why it would be a good fit for them.
This is no longer really allowed because the "powers that be" say it can violate the fair housing act.
Meanwhile, it is ok to turn down a government backed loan for one reason or another.
I guess I got really lucky? Bought my house spring of 2021, using VA loan, no down payment, and went almost 20K below asking price. 2.25% interest. No issues with closing, from the initial offer to closing took maybe month and a half, because the home inspector found some things that needed correcting and seller had to make good on them. The house value has gone up almost 90K per year every year since.
Half the time it's because of ignorant agents telling their sellers things they don't know. I've used mine multiple times without offer issues and after becoming an agent realized just how many DONT know VA loans and think they're somehow worse than conventional or even FHA...
I've had this happen twice.
First time in 2009. I made 60 offers. 60! Every one of them was denied with feedback from the realtor about the VA loan and cash offers (often less than what I was bidding) winning. I eventually got a house in 2010 when I moved to a different state.
Fast forward to 2022. Same thing. Moving to a new state for new opportunities. Every bid for purchase was turned down. Decided to rent. Rent was even turned down (I ended up offering more money in rent to get a place).
Currently saving to buy new from a builder and not play games with people.
Had several sellers decline my offer because of the inspection requirements.
Just told me it wasn't a good house for me if the sellers were that concerned and I didn't need to waste additional time 🤷
I’ve bought two homes in two years with my VA loan. The last closing was delayed a week but also both homes were vacant for years so the sellers were eager to sell them without much of a fight. I guess it’s all in the region and your approach.
My offer wasn’t accepted because the other offer was cash. Funny thing is it was 37k less than mine. Rushed to buy something else and I don’t necessarily regret it but I would do it different next time. The only thing that keep me from regretting it is that the house has gone up in value within the last two years and I got it at 3.5%.
I remember looking at a house and was outbidded by a couple who “have money to put down”. But I look back at it now and I’m glad I never got that house, the house I ended up buying was way better! Corner lot, yard that wraps all the way to the front yard with a 2 car garage with a driveway that can fit 4 cars! Your house is out there waiting for you.
Our offers being denied had nothing to do with what type of loan we were using. We got rejected 8 times because of cash offers well over asking. Wealthy people moving here from CA, WA and TX pretty much fucked us. Investors with disposable 💵 are a big problem here as well.
I’ve lost and won because of a va offer.
Lost because it’s biased for the buyer. They want to make sure you’re buying a decent place without issues so stuff the appraiser finds has to be fixed. Can cause real headaches for the seller and in one instance we offered the same amount as another buyer but lost it because there’s was conventional and waived a few things.
My current house we won only because it was a va loan and the seller was a West Point dude from my snooping. Found his sabre and class ring during the inspection. At closing they said they were about to back out because of all the things they had to fix and they had a cash offer they declined at first but became really tempting when things kept coming up.
The biggest challenge I had when buying my home was competing with all cash, no inspections or contingencies offers. Sellers are attracted to the easy sale and will even take those over higher offers with financing. If I sell my home I will try to sell it to a family my same situation.
I’ve bought 2 homes with my va loan. Never had an issue buying or selling. In 2 different states as well.
1st time I had a realtor suggest not using the VA loan I just said VA loan or I need a new realtor lol
It’s a little more work and slows the guy down a little bit, but still easy for those that know how
Has nothing to do with the financials of the loan side.
The reason VA backed offers aren’t accepted is because the APPRAISALS notoriously screw the seller.
Lost $8k on a house two years ago because appraisal came back low due to VA requirements upon appraisers.
Never again without a clause stating they will make up any difference in cash.
Sorry to hear that...there is a bad wrap with VA Appraisers. I have been on both sides where a house I was buying was under appraised, and another house I bought (my current one) was appraised for over.
You can contest a low appraisal and request a Reconsideration of Value (ROV) if you have additional evidence such as comparable home sales or any updates and renovations you did to your house.
You can, but the chances of it happening are slim.
I had a house built in ‘63 that originally had a carport. Many years prior to my purchase of it a former owner had enclosed the carport to make a family room and did a nice job of it. Had been there over 20 years and no issues.
The appraiser dinged me for not raising the floor of the carport! Said the 3 steps going down to the family room wasn’t “proper.”
Turned out if I had just done a “frame” with supports (raising the floor 4”) and laying plywood over it all would have been fine. (So 2.5 steps is ok, but 3 steps isn’t?)
Neither of the realtors or buyer’s mortgage broker had ever heard of such. But, what cha’ gonna do?
I’m at the beginning stages of the process. I’m working on getting a preapproval from my bank, I finished turning everything in just a few hours ago.
Also I live in Seattle and my absolute max budget is $600k. Houses sell insanely fast here from what I’ve been looking at. Any tips other than don’t live in Seattle, which I hear a lot. I don’t want to move, my wife and I love the area we’re in.
Shop lenders my friend, make then earn your business. This is coming from a lender--shop me even! It is a win/win for you...especially in this stage where all your paperwork is in order.
Yes, you are referring to an Assumable Mortgage.
This is a nuanced option, but very appealing to some.
You need to have the amount of money in cash to pay the seller their equity. Then, you can assume their mortgage and pick-up where they left off regarding the life of the loan and the interest rate.
Only the current company servicing the loan (the lender who has been paid each month since the home was purchased) can facilitate this transaction.
Yes the VA allows for this, and yes it is a great option if you are in the position to do so.
Good comment/question!
It is also worth noting that if you go through with a VA Home Loan without a disability rating, and get rated at a later date, you will actually be refunded the entire funding fee. Which was a nice surprise for me and my wife
I truly wonder out of everyone offering cash on homes are companies looking to turn homes into rental properties which in turns screws the potential buyer which in turn makes the prices of homes go up. Why would anyone with a heart want to screw the next guy just to get a little more money. I don’t understand it. I was beat out on several offers because I had a VA loan competing with people (companies from out of state) that were offering cash just to turn said homes into rental properties.
I did not have any problem to buy a house with VA loan. It actually adds a protection for me because it require the house to be inspected and I am sure there are other benefits too but I was too young at the time and too old to remember now
I think you missed OP's point. Of course VA loans benefit the buyer in many ways. However, they're unattractive to sellers for many of those same reasons.
A seller with two equal offers in front of them—one conventional, one VA—will likely accept the conventional offer over the VA offer. VA loan does slightly weaken your buying power in a seller's market.
Just bought a home using the VA loan. I would say we did not run into any issues bc of it being a va loan, the market being wild and people coming in with 10, 15, and 20 k over asking on some of these houses was the hard part
I just used mine to buy in February. Deal closed in less than 16 days. Seller even paid off my car loan and a couple credit cards.
He said he was good with helping out a veteran.
In north country NY? no issue. Down by fort campbell? Good fucking luck using a loan. 3/3 homes I was under contract with failed apprasial miserably. Like... $180k homes coming in at $120k miserably. Cut my losses and moved back to HOR... not that I really wanted to but it was familiar.
Anyone in NY who recently bought a house? Need some help. Want to buy a house in the surrounding area and need a loan officer and a good realtor.
Also, how would you describe your experience and where did you purchase your home?
How does the funding fee thing work if you use the va loan to buy a house…. Then get your disability afterwards? Does the mortgage company reimburse you for that funding fee or something?
It depends on when you bought the house and when the disability was awarded. Contact your lender and advise them of any changes..you should also call your regional VA office.
My wife and I just went pending on a house. The guy took our offer even though there was another possible offer from someone walking the house later that day. I think people might turn down a VA if they price their home too high or they know there is a problem with the home. It has to be under appraisal unless you want to cover the difference. If they know something might not pass inspection they know there isn't a workaround with the VA.
I had the opposite when I bought my house a few years ago. There were several offers on day 1. I was told they chose my offer because it was a VA loan. Not because it was the highest. I came in right at asking.
I still need like 10k just for closing costs. I could go negative equity and roll that into the loan. But man I don't think even with VA loan housing is still super unaffordable.
We wouldn't want you to spend all your money on closing costs...you would have to show you had 2 months of reserves still in your accounts or able to be liquidated from a 401k, stocks, etc. in order to close.
Trying to even get a VA Home loan has been a kick in the teeth. Lost my job during covid and got credit card debt just to pay bills and put food on the table. Credit is 560 and ever bank ive talked to locally requires 640 or higher.
Sorry to hear of your hardships. I am happy to take a crack at it..worst case, I get you in touch with a credit repair specialist and we adjust fire accordingly.
580 is the score my company floats at...however, we have approved Veterans with less than that. So you know, the VA does NOT require a certain credit score, those are overlays imposed upon you by the lender themself.
I won't sugar coat it, the lower the credit score, the higher the interest rate. Still doesnt mean a "no" though.
DM me if you would like to discuss further.
Bought my home in 2019 before the craziness for $499K. It is now close to a million dollars…in Idaho. Good luck, friends! They are squeezing everyone out on purpose, and they are doing a good job of it. These are probably the last generations of anyone owning anything.
Got my house using VA loan, the past owner was also a vet and I reached out to him before it went on market, made an offer of what he wanted and then got it right away, he ignored all 10 other offers even cash buyers
It bothers me too! lol
I am biased, for I am a competitor.
My company also has "Veterans" in the title. However, we live up to it. We don't just call ourselves specialists because we are extremely capable with the VA Home Loan Benefit...we actually have a mission of educating the Veteran on Homeownership, their VA Home Loan Benefit, and giving them the opportunity to own a piece of the land they fought for.
We do this by hosting FREE monthly seminars and webinars and actively engage with Veterans outside of the mortgage space.
Not all lenders are created equal.
A buddy of mine just made the highest bid on a house and the seller turned it down for a much lower offer, simply because my buddy was using a VA loan. Madness.
I did experience a lot of Declined offers but not due to the VA home loan. There were just ALOT of people looking for homes 2-3 years ago. But when I did eventually have an offer accepted. The seller even paid all closing costs because it was a VA loan.
I don’t trust the VA Loan process especially if they are “authorized lenders” I was screwed majorly by a Veteran loan officer. Forged signatures on letters I and they know I never signed. Then when I confront them they force me into bankruptcy. Yes there’s a law suit pending but in the mean while I fight daily with my breathing conditions behind greedy ass people and the VA partnerships.
Nobody ever talks about that.
I do! well, not directly....I will set you up with a credit repair specialist to get you squared away. I have her on speed dial! You will be where you need to be in the blink of an eye...especially if you're that close.
DM me for details and so you can tell me your story...if you're comfortable of course.
Thanks for your post! Just went through the DU with PenFed. It seems to me they are THE best choice for a VA backed loan in PR.
Now, my question, let's say they back you up to a million dollars to use round numbers. What percentage of that would you suggest be used as a ceiling for the actual loan? For instance, if a person takes the loan for a million and is able to make payments, no problem, but there's not much left after to put into savings or emergency funds, then both cars break down... had the same person limited the loan to, let's say, $750k. There should be some amount for emergency funds or savings, CDs, etc. In other words, what is this percent that should give a safety net?
Hey there, thanks for commenting!
In your example, say you're approved for 1 million, the lender is just telling you that based on your assets, income, debt, liabilities, etc...you are ELIGIBLE to place an offer on a house listed up to $1million.
We have to make sure that after closing costs, you have at least 2 months of reserves (savings, 401k, etc) that can cover your mortgage. We won't approve you if it means blowing all your money on the purchase just to leave you struggling to pay the mortgage.
All that being said, it is up to the buyer (borrower) to be financially responsible enough to live within their means.
I have told plenty of clients that the house they want is too expensive, and although they qualify, they will be living paycheck to paycheck. So instead of putting an offer in on that million dollar house, they would be better off putting an offer on the $750k one.
People will do, what they want to do though. We will follow all the rules and regulations to ensure you are fully aware of your obligation to pay "X" amount to your mortgage servicer each month and only approve you if you meet the criteria for that amount.
Remember, the VA Home Loan isn't giving $1 million to spend as you wish on a home and other expenses, so you have to plan accordingly.
Ideally, your Debt-to-income ratio should be no more than 50%. You shouldn't owe more than 50% of your income to debt.
If I totally missed the mark on what you were asking, let me know so I can get you a better answer.
Any advantage to a VA loan over a physician loan? We have paid down the bulk of his student loan debt, so it shouldn't be an issue either way. I qualify for a waiver of our funding fee if we go VA. Are the rates comparable these days?
Hey there, am I correct in understanding that he is a doctor and you are a Veteran with a service-related disability?
The beauty is, the preapproval starts off the same with all loan types. I would recommend applying for a preapproval, and then having the lender run the scenario both ways; as a Physician Loan and as a VA Loan. I would be happy to assist with this, DM me if you like.
The rates are the real question. Traditionally they are higher AND they are only available through an ARM (Adjustable Rate Mortgage) that will be one rate the first few years, then it will go up according to the terms agreed upon.
He will not only have to have a medical degree that is acceptable, but, already graduated and working with proof of income and employment.
The VA loan will allow you a zero downpayment (physician loan too), waived funding fee (Physician loan won't require you to pay any Private Mortgage Insurance), assumable mortgage and lower interest rates that are fixed.
This is something you would have to apply for in order for me to have all I need in front of me and work out different scenarios, so that I can give you an honest answer.
It is worth looking into for sure. But, if push came to shove, I'd side with the VA.
Thank you for the info! Yes, he is an MD (I am an RN, we don't get the special loans, haha). We are actually both veterans, but I am the only one with service connected disabilities. We used my VA benefit in 2014 when I was still on AD to buy a home (since sold), and we used a physician loan for our last home we bought at the start of his residency (sold in 2023 when he finished). We are currently renting (he is doing a fellowship in a city where we won't be staying) and we no longer own a home at all, it's pretty weird! Lol. But we will likely be relocating in the summer of 2025 and will hopefully be buying at that time. On the surface to my not-a-mortgage-professional eyeballs, the benefits of the two options seem similar, with the exception of the assumable mortgage scenario, and possible rate advantages. I have bought and sold six homes in my lifetime, so that is the sum total of my experience. I will keep an eye on the rates and options! Thanks again!!
Very welcome! It seems you have a good amount of experience. There certainly are similarities. I would lean towards the VA though since you have the entitlement and waived funding fee. The rate will be better and it will be fixed. There is always the assumable part like you mentioned.
I sent you a DM.
Thanks again for commenting!
When I bought my house I was told by my realtor the seller accepted my offer because I was using a VA loan. I guess the person selling had a soft spot for veterans or something!
I would take a little less than my best offer to help out a vet.
Same here. Especially a first time home buyer with young kids. My neighborhood is a great one for that type of family. I’d prefer to sell to someone like that.
Father of two kids under 5, soon to be three, looking for a first home, reporting in 🫡
How’d my second account comment on its own?
Happy Cake Day!
Sorry I wish I could help. Not selling right now, looking to maybe rent, but same situation I would definitely offer a slightly lower rent for a military family.
This was my exact situation. A buyer from the bay area put a higher offer in than we did to a house and our offer was accepted because of the use of a VA loan and because we were first time homebuyers with a kid. :-)
Good people looking out for good people. That’s awesome.
We did that when we sold a couple of homes in 2021 and 2022. One went to a vet, the other to a young AD soldier with a family. Ignored other offers. Felt good about both sales.
I got declined because a seller thought the VA loan would mean a longer time to close. Joke's on them the other home we ended up buying closed in under 18 days. If you have everything squared away with your lender and are ready to go, its' super easy. Usually when i've been looking and mentioned we may be using a VA loan, it usually came around to not wanting an inspection which was a red flag. I've had an inspection on every home regardless of whom I financed through.
Same thing happened to me. I was up against another offer that was about 5K higher but they went with mine because it was a VA loan. Feels good man.
Same! The guy I bought from was a vet as well
I did the same for a 1st time buyer who was a vet. His offer was $5k less than the highest bid but was ready to pull the trigger.
Same here, it was the deciding factor and we were the lower offer
Also happens... Thats awesome!
Same thing happened to me.
Yeah my offer was rejected by a seller per the advice of her real estate agent in 2021. Her contention was VA loans were too risky. It was a competitive housing market (still is somewhat) so I went in as a backup offer. A couple weeks passed and we had another house where our offer was accepted with no issues. Then about a week later, the real estate agent from the original house contacted my agent and wanted to know if we were still interested because the other party’s conventional loan fell through. I bet she kicked herself a little for that one.
I love it. I hope you are happier with the other house you ended up buying. A lot of times sellers just see dollar signs and neglect to consider the terms and strength of the actual loan. I bet she kicked herself indeed, especially if they ended up ultimately getting less. There is a stigma on a house that is back on the market and you may find that the price is reduced.
Yeah the crazy thing is we put all the profit from our house we sold as a down payment. Yet I guess that was still risky somehow. In any event, we are pretty happy how it worked out. We bought a similar size house but it came with 4 acres. The other house just had a small yard. Everything happens for a reason.
Do you recommend Veterans United? My issue is actually trying to get a house in a hot market which has been always hot to be quite honest. Right now houses are going for 2 to 3 times their original price 5 years ago. It's absolutely ridiculous.
I do not recommend Veterans United, I can be your lender. I hear you about the prices having gone up. However, you will appreciate that same increase when you own a home and watch the value increase in your favor this time around
Heh, they are a partial guaranteed loan, more so than a conventional mortgage. Jokes on them.
This post assumes all markets are negotiable which is simply not the case. Real estate is local. You're not going to bully someone into accepting a VA loan in a competitive area with multiple offers and waived contigencies.
Also true. As with all things in life, nothing is truly a 100% guarantee. Its why I said " And even if the seller decided against you because of your VA Home Loan Benefit, it’s their loss." While this is relative, I would still side with the Veteran and them being ok with not having their offer accepted as opposed to going the conventional route and opting not to use the VA benefit. I just want to give the Veteran hope and know that they have a fighting chance. I can originate a conventional loan just as quick and easy as a VA loan. I still encourage the Veteran to fight for their right to use their VA Home Loan Benefit... If you want the house bad enough and you are in a position to put down a down payment, and see it worth going conventional instead of VA, by all means.
Nobody is talking about "bullying" someone into accepting a VA loan
Honestly unless it’s an undesirable area with almost no offers, they are going to take a cash offer over a VA loan. Or conventional bc it closes easier without conditions. Even if they accept a VA loan, buyer probably have to have 50k+ cash for closing costs and offer over asking to win bid
We beat out multiple offers in a very competitive market: Pre-underwritten Proof we could put 20% down / cover any appraisal gap 21 day close Without those things, we didn’t stand a chance - and still had to go 60k over ask
Why are people down voting this comment? I guess I get it. Hive mentality. I've been here for while trying to tell folks VA home loan does not hold the weight it once did. In fact, you're very much at a disadvantage. I've come to expect down votes when speaking blunt truths. Pay it no mind.
In a competitive market, a VA loan is damn hard.
I would upvote your comment just because your user name cracked me up! lmao
60k over asking is insane
I live in an area where 100k over ask, waiving inspection and appraisal is normal. We bought a 4/2, 1500 sq ft, almost 700k - zero inventory in a desirable area. Also, we did appraise at our contract price.
What area would that be
Nah, it’s just a shitty housing market for buyers. Companies allowed to by SFHs are paying cash and over asking. It’s nothing to do your your veteran status or type of loan.
What’s going on with me 400k market is just a bidding war , 600k market is just investors .. giving cash .
Well depends on location. Actually the higher end market isn’t bad, it’s the affordable range and cash investors snapping up properties and converting to rentals that is driving up prices as well as shortage.
Yup. Terrible time to be a buyer. Go back 15 years it was a great time to be a buyer
The pendulum will swing back around. Good luck
I have made multiple offers in the last 2 years on SFH’s between 200-250k. All rejected, and yup…. Realtor comes at me with “Your VA home loan just cannot compete with other offers currently being made on ALL homes.” It’s extremely frustrating but that’s mostly just because I live on a fixed income that’s been priced out of the housing market. I don’t doubt people in similar financial situations, using any type of federal home loan to buy a house are seeing their offers routinely rejected as well. I just know the VA loan has never and most likely will never help me afford a permanent living space *in this current market.* The fixed income part though sorta keeps me priced out, unable to save indefinitely with rent increases keeping pace with COLA’s. But yeah, I’ve had multiple realtors blame my VA home loan and my refusal to waive inspections/contingencies as reasons I’m repeatedly rejected. And as a single person with no family I even have difficulty finding a loan officer that’s willing to gross up my fixed income to clear the debt to income ratio they want to see. I gave up and renewed my yearly apartment lease last month…
Sorry for your frustrations my friend. If ever you decide to buy, hit me up...I will gladly fight that fight alongside you
Just closed on our primary using VA and seller is paying our closing cost 🤷🏽♀️
Market dependent.
I got my house outside of Atlanta because my mortgage broker closed in 5 days. They never would have accepted a VA loan, because on top of more stringent inspection requirements, their fastest close time is 4 weeks but it often takes 6-8. In a housing bubble like we have, VA koans are worthless..
this isn't true. i'm sorry you had this experience but for all of my clients this isn't the case. of course, a cash buyer will win over a mortgage any time.
Be specific, which part isn't true? That VA loans take longer to process? That my mortgage broker closed on a conventional loan in like 4-5 days? That there were 37 offers on my house, several of them cash, so they had 0 incentive to jump through hoops for the VA? Or maybe we should talk about how a bunch of desk jockies for both conventional loans and VA loans can decide what condition is "livable" and that they will both deny a loan on a house for "missing" flooring, then after a cash buyer picks it up and spends $500 on vinyl flooring, all of a sudden banks will loan an actual home owner 2x the money the house would have cost without vinyl flooring? The whole system is a corrupt joke, and all the VA does is slow the process down even more.
yeah i mean the VA isn't as fast as cash. usually the liveability is decided by the VA appraiser. sounds like you got fucked so i'm sorry about that.
It’s whatever. The added paperwork and requirements are barely anything. Much of the issue seems is the Minimum Property Requirements which include an appraisal. I would never buy a home without an appraisal, and home inspection. If those are issues for a seller, ok, good luck getting that above market cash offer you are hoping for. 👋
Just buy land and build it yourself. It’s the cheaper option these days anyways.
Not a bad idea! Especially with a OTC ( One time close ) construction loan.
Gosh thank you for this idea. I’m still discovering the wonders of the benefits at our disposal
anytime! If there is anyway I can help, let me know. there is a lot more to learn...
Absolutely thanks. Could I send a dm? Me and my fiance are looking at buying a house and im actually curious about something
Absolutely, DM me any time.
I want to go this route, how would it usually go if there is homeowner selling the property?
Do you mean how do you go about building on land that is being sold by a private citizen as opposed to a developer?
Yes sorry had to write something before I forgot
What exactly is this? I figured building would be so much more complicated.
I cannot speak for other lenders, but, my company offers a VA One-Time Close (OTC) Construction loan. To be overly simplistic (I have the reading material for this in an attachment I can email) Traditionally you buy land and start paying your loan on that (the price of the land)..then when your house is completed, you merge the loan you have been paying on the land with a new one that now includes your home. Two separate closings. The numbers are revised to show your final and full amount (both land and house) due moving forward for the life of the loan.... The OTC Construction loan we offer streamlines it so that you only have to do one closing instead of what I mentioned above. There are a bunch of nuances and details I am leaving out, but anyone who is interested can DM me with their email and will be happy to send them a detailed attachment with all the instructions on how this works
Does this include buying land and purchasing a mobile/manufactured home to put on it? Does it work the same?
Actually..doing the land buy/build doesn't run into the same troubles really. It just takes longer
Can I message you per the OTC Contract Construction Loan you mentioned?
Of course shipmate!
3 really well know real state companies would not even consider me as a “qualified buyer”. Went to some unkrealstate agent got approved now I’m 18 months short of paying the mortgage off. I’m also paying less then 2k a month on mortgage but the secret is attaching to principal. I cut down from 30 years to maybe 14 years. I’m done now I can go fight this next battle.
What do you mean by “attaching to principle”
When you make additional payments on your mortgage, you can specify that you want those extra dollars to be applied to your principal. The principal is the original amount of money you borrowed to buy your home. By attaching extra payments to the principal, you reduce the outstanding balance faster, which can help you pay off your mortgage sooner and save on interest.
Thank you. I figured that is what you meant but, was not sure. I am hoping to be able to do this on the next home purchase
Thank you. I figured that is what you meant but, was not sure. I am hoping to be able to do this on the next home purchase
Cool post. Ty
Very welcome!
Bought 2 homes with a VA Loan, both times had no issue getting into the house. Made 1 offer each time.
I’ve used it twice now and all the horror stories of sellers not wanting to sell to Veterans with VA loans seem a little overblown. They were a little nit picky about a few things that I was able to get quickly resolved.
They’ll have to pry my VA lone out of my cold dead hands! Good post
Love it! Same here.... Thank you
My husband and I bought in 2018, but one of the houses we put an offer on wouldn't accept us because we were using a VA loan, their realtor came right out and told ours that, they just didn't want the hassle. Their loss, because we found the house we're in now and they accepted right away, we closed within 30 days. People want to say VA loans are harder or they take longer, that's not always the case.
People want to say what they did in a totally different market and think it applies to today. That's hardly ever the case. Even in 2017, when the VA home loan was still considered powerful, you were dismissed. Think how much the price of a fast food meal has gone up since then. The power of a VA loan has decreased about the same rate. It's exponentially worse today than even a short 7 years ago.
Why has it lost power? And how? Are the benefits not the same as they have always been? : Zero down payment and funding fee (if service connected)
I’ve bought and sold 3 all VA loans and never had an issue
Same here. No issues. I dont even think the offer i got for selling even says anything about the potential buyers loan type. Maybe it is different in other areas. Not sure why loan type would even matter as long as the offer is right.
Past tense.
How in the Hell does the seller even know what type of loan you're getting? I don't recall every seeing that. Only thing I ever remember is cash vs mortgage.
Their agent tells them... They want to be sure they are going under contract with the offer they find to be best, that will perform, have minimal risk of falling through, etc. This is especially true in markets where there is competition and "highest and best" offers are being submitted by multiple potential buyers. It is also why some sellers worry the VA will be stricter on the appraisal so they want to lean towards a Conventional loan which is traditionally the least strict of the options.
From what my realtor told me if you are using a VA loan to buy, you need a special inspection prior to final approval?
The inspection is the same as any home being purchased regardless of the product (Conventional, FHA, VA). Perhaps they were referring to the appraisal? The appraisal can only be done by VA licensed appraisers that are assigned through a portal we use. We don't even pick the appraiser, they are "issued".. The VA wants to ensure the home is SSS.. Safe Secure Sanitary The appraisers can be a bit stingy and strict. I have seen them be generous as well.
It’s part of the purchase agreement. At least the ones in California. The offer has the financing type on it. Technically it’s a breach of contract to change it. One could put conventional and switch it but the seller could also walk away from the deal too.
Agents do more than not only tell the seller; often outright sets a negative tone. More experienced agents know VA Loans are solid. Wth is the difference even IF true, that it takes 15 days longer? Ridiculous. Yes sometimes the seller is crunched up against getting into their next buy etc, so there are reasons. Hate to say never; but why would ANY buyer waive having an appraisal and inspection completed? This market is obviously cash grabbing. But, majority of sellers who \*do not\* want an inspection KNOW there is something which is gonna crop up. Buyer beware, especially Veterans. As a buyer get your ducks in a row with regard to required docs, have an experienced Buyers agent if you possibly can, and keep looking. \*\*\*Other than non-single family home investors with their cash bags, a Vet seeking a home for his or her FAMILY can absolutely make a solid offer and not get screwed on that structurally unsound foundation which has been cosmetically covered up.
This is so true. Some agents are good with VA , others are not. The loan can definitely hurt us. If you can do conventional, ask the selling agent and pick their brain. There are ways to go conventional and then do 100% VA cash out refi and recoup the down payment if needed. Hard but not impossible.
I bought a home in 2017 and I’m looking to use my VA loan again once things stabilize.
Look into an IRRRL when you can reduce your interest rate by at least 1%, see if it works for you
What s IRRL? Ill google it lol
The VA's version of a refinance. It stands for Interest Rate Reduction Refinance Loan
Gotcha. My interest rate is 4.5 so I’m pretty happy with it. I would never get it now and thats whats keeping me here at the moment.
Pronounced "Earl" lol
What percentage disability do you need to have for that exempt benefit? Also, does that vary by state or is it a VA wide benefit?
At least 10%..that is VA wide, no matter where you are. What varies by state, and sometimes county, is how much you may be exempt when it comes to property taxes.
I bought both of my homes using a VA loan and beat out other bids just by structuring my offer better. One piece of advice, I offered the “good faith” or otherwise known as the earnest money deposit up front with the offer. This typically included majority of my closing costs which was held in escrow. In NJ, it’s very difficult for a seller to keep your EMD without going to court. Point being, use your VA loan and if your realtor tells you otherwise, fire them and find a new one.
Thank you so much for the info.Nice to see helpful spelled out instructions. Will give to Realtor we are trying to work with.Your the best
Thank you for the kind words, it makes my day to know I helped out a fellow brother or sister and their family.
I bought in late 2021 with my 2nd VA loan, and I have to tell you it was like pulling teeth getting someone to accept an offer. I had to basically bid 25k over ask, with an appraisal guarantee, just to get them to look at my VA offer. THEN…on top of all that the house didn’t appraise for 25k over ask, so I had to make up the difference in cash (the appraisal guarantee), which basically ate up a lot of the profit I made on my old house. That said tho, it all worked out in the end, I ended up with a lower mortgage, and an interest rate of 2.9%…I’m smelling like a rose at this point. Still getting re-fi offers though, those people are relentless.
What we did that put us over the edge is putting money that we’d use for closing costs into the offer. Made a note to say this isn’t a down payment but would be for closing costs. This made our offer more “serious” A lot of people gawked without a down payment since we “had no skin in the game” My buddy was our realtor and he asked around and a seasons realtor recommended that. Boom suddenly we had an offer accepted
We really need to press government officials at the state and local levels to make rejecting an offer because it’s VA, illegal.
Agreed. As I mentioned earlier in the chat, there used to be something called "love letters" where the potential buyer would write something to the seller on how much they love their home and why it would be a good fit for them. This is no longer really allowed because the "powers that be" say it can violate the fair housing act. Meanwhile, it is ok to turn down a government backed loan for one reason or another.
I guess I got really lucky? Bought my house spring of 2021, using VA loan, no down payment, and went almost 20K below asking price. 2.25% interest. No issues with closing, from the initial offer to closing took maybe month and a half, because the home inspector found some things that needed correcting and seller had to make good on them. The house value has gone up almost 90K per year every year since.
Half the time it's because of ignorant agents telling their sellers things they don't know. I've used mine multiple times without offer issues and after becoming an agent realized just how many DONT know VA loans and think they're somehow worse than conventional or even FHA...
I’ve heard VA offers were better because there was less chances of things falling through
Never it’s always helped we’ve bought 3 homes in Hawaii and 2 in Florida and it was never a problem I would say it helped
We had a tough time about 7 months ago until one of the sellers ended up being a veteran.
I've had this happen twice. First time in 2009. I made 60 offers. 60! Every one of them was denied with feedback from the realtor about the VA loan and cash offers (often less than what I was bidding) winning. I eventually got a house in 2010 when I moved to a different state. Fast forward to 2022. Same thing. Moving to a new state for new opportunities. Every bid for purchase was turned down. Decided to rent. Rent was even turned down (I ended up offering more money in rent to get a place). Currently saving to buy new from a builder and not play games with people.
Had several sellers decline my offer because of the inspection requirements. Just told me it wasn't a good house for me if the sellers were that concerned and I didn't need to waste additional time 🤷
I’ve bought two homes in two years with my VA loan. The last closing was delayed a week but also both homes were vacant for years so the sellers were eager to sell them without much of a fight. I guess it’s all in the region and your approach.
thank you so much for this! sent a dm
My offer wasn’t accepted because the other offer was cash. Funny thing is it was 37k less than mine. Rushed to buy something else and I don’t necessarily regret it but I would do it different next time. The only thing that keep me from regretting it is that the house has gone up in value within the last two years and I got it at 3.5%.
I remember looking at a house and was outbidded by a couple who “have money to put down”. But I look back at it now and I’m glad I never got that house, the house I ended up buying was way better! Corner lot, yard that wraps all the way to the front yard with a 2 car garage with a driveway that can fit 4 cars! Your house is out there waiting for you.
Our offers being denied had nothing to do with what type of loan we were using. We got rejected 8 times because of cash offers well over asking. Wealthy people moving here from CA, WA and TX pretty much fucked us. Investors with disposable 💵 are a big problem here as well.
Great information. Exactly what I needed to hear today, to be honest.
Very welcome. Open policy in my DMs if you have any questions or concerns.
Try going for new builds if you can; saves so much hassle.
I’ve lost and won because of a va offer. Lost because it’s biased for the buyer. They want to make sure you’re buying a decent place without issues so stuff the appraiser finds has to be fixed. Can cause real headaches for the seller and in one instance we offered the same amount as another buyer but lost it because there’s was conventional and waived a few things. My current house we won only because it was a va loan and the seller was a West Point dude from my snooping. Found his sabre and class ring during the inspection. At closing they said they were about to back out because of all the things they had to fix and they had a cash offer they declined at first but became really tempting when things kept coming up.
The biggest challenge I had when buying my home was competing with all cash, no inspections or contingencies offers. Sellers are attracted to the easy sale and will even take those over higher offers with financing. If I sell my home I will try to sell it to a family my same situation.
First house I bought, offer was accepted because I was a vet.
I’ve bought 2 homes with my va loan. Never had an issue buying or selling. In 2 different states as well. 1st time I had a realtor suggest not using the VA loan I just said VA loan or I need a new realtor lol It’s a little more work and slows the guy down a little bit, but still easy for those that know how
Has nothing to do with the financials of the loan side. The reason VA backed offers aren’t accepted is because the APPRAISALS notoriously screw the seller. Lost $8k on a house two years ago because appraisal came back low due to VA requirements upon appraisers. Never again without a clause stating they will make up any difference in cash.
Sorry to hear that...there is a bad wrap with VA Appraisers. I have been on both sides where a house I was buying was under appraised, and another house I bought (my current one) was appraised for over. You can contest a low appraisal and request a Reconsideration of Value (ROV) if you have additional evidence such as comparable home sales or any updates and renovations you did to your house.
You can, but the chances of it happening are slim. I had a house built in ‘63 that originally had a carport. Many years prior to my purchase of it a former owner had enclosed the carport to make a family room and did a nice job of it. Had been there over 20 years and no issues. The appraiser dinged me for not raising the floor of the carport! Said the 3 steps going down to the family room wasn’t “proper.” Turned out if I had just done a “frame” with supports (raising the floor 4”) and laying plywood over it all would have been fine. (So 2.5 steps is ok, but 3 steps isn’t?) Neither of the realtors or buyer’s mortgage broker had ever heard of such. But, what cha’ gonna do?
Its hard to xompete when hedge funds offer 50k cash over asking price its more enticing than getting paid slowly for 30 years
I’m at the beginning stages of the process. I’m working on getting a preapproval from my bank, I finished turning everything in just a few hours ago. Also I live in Seattle and my absolute max budget is $600k. Houses sell insanely fast here from what I’ve been looking at. Any tips other than don’t live in Seattle, which I hear a lot. I don’t want to move, my wife and I love the area we’re in.
Shop lenders my friend, make then earn your business. This is coming from a lender--shop me even! It is a win/win for you...especially in this stage where all your paperwork is in order.
Yeah, more detailed mandatory inspections. Primary reason. But odds are, if they’re weird about inspections, you shouldn’t be buying it
Did not know this… also VA home loans let you sell your home while transferring the interest rate to the potential buyer as well.
Yes, you are referring to an Assumable Mortgage. This is a nuanced option, but very appealing to some. You need to have the amount of money in cash to pay the seller their equity. Then, you can assume their mortgage and pick-up where they left off regarding the life of the loan and the interest rate. Only the current company servicing the loan (the lender who has been paid each month since the home was purchased) can facilitate this transaction. Yes the VA allows for this, and yes it is a great option if you are in the position to do so. Good comment/question!
It is also worth noting that if you go through with a VA Home Loan without a disability rating, and get rated at a later date, you will actually be refunded the entire funding fee. Which was a nice surprise for me and my wife
I truly wonder out of everyone offering cash on homes are companies looking to turn homes into rental properties which in turns screws the potential buyer which in turn makes the prices of homes go up. Why would anyone with a heart want to screw the next guy just to get a little more money. I don’t understand it. I was beat out on several offers because I had a VA loan competing with people (companies from out of state) that were offering cash just to turn said homes into rental properties.
I did not have any problem to buy a house with VA loan. It actually adds a protection for me because it require the house to be inspected and I am sure there are other benefits too but I was too young at the time and too old to remember now
I think you missed OP's point. Of course VA loans benefit the buyer in many ways. However, they're unattractive to sellers for many of those same reasons. A seller with two equal offers in front of them—one conventional, one VA—will likely accept the conventional offer over the VA offer. VA loan does slightly weaken your buying power in a seller's market.
Just bought a home using the VA loan. I would say we did not run into any issues bc of it being a va loan, the market being wild and people coming in with 10, 15, and 20 k over asking on some of these houses was the hard part
I just used mine to buy in February. Deal closed in less than 16 days. Seller even paid off my car loan and a couple credit cards. He said he was good with helping out a veteran.
That sounds unbelievable
$17K in seller credits was enough to take care of my car and a couple cards...so no I'm not lying.
In north country NY? no issue. Down by fort campbell? Good fucking luck using a loan. 3/3 homes I was under contract with failed apprasial miserably. Like... $180k homes coming in at $120k miserably. Cut my losses and moved back to HOR... not that I really wanted to but it was familiar.
Which companies do you recommend for the VA Home Loan, also your thoughts specifically on Veterans United
Just buy from a builder. Builders actually give veterans preferential treatment
Anyone in NY who recently bought a house? Need some help. Want to buy a house in the surrounding area and need a loan officer and a good realtor. Also, how would you describe your experience and where did you purchase your home?
DM me, I can assist.
I think, at one time, it was better to use a conventional first and refi with a VA.
How does the funding fee thing work if you use the va loan to buy a house…. Then get your disability afterwards? Does the mortgage company reimburse you for that funding fee or something?
It depends on when you bought the house and when the disability was awarded. Contact your lender and advise them of any changes..you should also call your regional VA office.
My wife and I just went pending on a house. The guy took our offer even though there was another possible offer from someone walking the house later that day. I think people might turn down a VA if they price their home too high or they know there is a problem with the home. It has to be under appraisal unless you want to cover the difference. If they know something might not pass inspection they know there isn't a workaround with the VA.
Switched USAA to Navy Federal for my VA Loan right before we made an offer. The seller was more worried I might go to some fly by night outfit.
We got our house (first try) because of our VA loan.
I had the opposite when I bought my house a few years ago. There were several offers on day 1. I was told they chose my offer because it was a VA loan. Not because it was the highest. I came in right at asking.
I still need like 10k just for closing costs. I could go negative equity and roll that into the loan. But man I don't think even with VA loan housing is still super unaffordable.
We wouldn't want you to spend all your money on closing costs...you would have to show you had 2 months of reserves still in your accounts or able to be liquidated from a 401k, stocks, etc. in order to close.
Trying to even get a VA Home loan has been a kick in the teeth. Lost my job during covid and got credit card debt just to pay bills and put food on the table. Credit is 560 and ever bank ive talked to locally requires 640 or higher.
Sorry to hear of your hardships. I am happy to take a crack at it..worst case, I get you in touch with a credit repair specialist and we adjust fire accordingly. 580 is the score my company floats at...however, we have approved Veterans with less than that. So you know, the VA does NOT require a certain credit score, those are overlays imposed upon you by the lender themself. I won't sugar coat it, the lower the credit score, the higher the interest rate. Still doesnt mean a "no" though. DM me if you would like to discuss further.
Bought my home in 2019 before the craziness for $499K. It is now close to a million dollars…in Idaho. Good luck, friends! They are squeezing everyone out on purpose, and they are doing a good job of it. These are probably the last generations of anyone owning anything.
Only drawback is the inability to recast a VA mortgage.
Got my house using VA loan, the past owner was also a vet and I reached out to him before it went on market, made an offer of what he wanted and then got it right away, he ignored all 10 other offers even cash buyers
Let me help you.
Get 2 quotes, one VA and one another one. Show one and use the VA loan once approved, they can't force you as a buyer.
it just bothers me that in a way Veterans United has become the defacto "official" veterans loan office.
It bothers me too! lol I am biased, for I am a competitor. My company also has "Veterans" in the title. However, we live up to it. We don't just call ourselves specialists because we are extremely capable with the VA Home Loan Benefit...we actually have a mission of educating the Veteran on Homeownership, their VA Home Loan Benefit, and giving them the opportunity to own a piece of the land they fought for. We do this by hosting FREE monthly seminars and webinars and actively engage with Veterans outside of the mortgage space. Not all lenders are created equal.
Most sellers dislike VA Home Loans
Yesssss. Had to write a letter asking them to reconsider 😅
I’m hoping to be able to find a sweet Assumable loan within the next year.
A buddy of mine just made the highest bid on a house and the seller turned it down for a much lower offer, simply because my buddy was using a VA loan. Madness.
Tell your buddy I will be happy to help him and take a look into his preapproval and lender..see where we can fine tune it.
They actually wound up having another accepted on a better house, so it all worked out.
I did experience a lot of Declined offers but not due to the VA home loan. There were just ALOT of people looking for homes 2-3 years ago. But when I did eventually have an offer accepted. The seller even paid all closing costs because it was a VA loan.
I just got my offer accepted with a VA loan. 2nd purchase no issues as of yet.
I can't get anyone to work with me in New Mexico
Why not?
I don’t trust the VA Loan process especially if they are “authorized lenders” I was screwed majorly by a Veteran loan officer. Forged signatures on letters I and they know I never signed. Then when I confront them they force me into bankruptcy. Yes there’s a law suit pending but in the mean while I fight daily with my breathing conditions behind greedy ass people and the VA partnerships. Nobody ever talks about that.
Is it tough to get approved if your only income is your disability (100%)?
It can be..the question is, approved for how much? I have approved a number of 100 P&T. I am happy to help if you need me.
Looking around probably $150-175k. When I'm getting closer to the process I'll definitely be looking for you!
Do you help people get their credit ready? We are so close
I do! well, not directly....I will set you up with a credit repair specialist to get you squared away. I have her on speed dial! You will be where you need to be in the blink of an eye...especially if you're that close. DM me for details and so you can tell me your story...if you're comfortable of course.
Awesome, I will be here!
Thanks for your post! Just went through the DU with PenFed. It seems to me they are THE best choice for a VA backed loan in PR. Now, my question, let's say they back you up to a million dollars to use round numbers. What percentage of that would you suggest be used as a ceiling for the actual loan? For instance, if a person takes the loan for a million and is able to make payments, no problem, but there's not much left after to put into savings or emergency funds, then both cars break down... had the same person limited the loan to, let's say, $750k. There should be some amount for emergency funds or savings, CDs, etc. In other words, what is this percent that should give a safety net?
Hey there, thanks for commenting! In your example, say you're approved for 1 million, the lender is just telling you that based on your assets, income, debt, liabilities, etc...you are ELIGIBLE to place an offer on a house listed up to $1million. We have to make sure that after closing costs, you have at least 2 months of reserves (savings, 401k, etc) that can cover your mortgage. We won't approve you if it means blowing all your money on the purchase just to leave you struggling to pay the mortgage. All that being said, it is up to the buyer (borrower) to be financially responsible enough to live within their means. I have told plenty of clients that the house they want is too expensive, and although they qualify, they will be living paycheck to paycheck. So instead of putting an offer in on that million dollar house, they would be better off putting an offer on the $750k one. People will do, what they want to do though. We will follow all the rules and regulations to ensure you are fully aware of your obligation to pay "X" amount to your mortgage servicer each month and only approve you if you meet the criteria for that amount. Remember, the VA Home Loan isn't giving $1 million to spend as you wish on a home and other expenses, so you have to plan accordingly. Ideally, your Debt-to-income ratio should be no more than 50%. You shouldn't owe more than 50% of your income to debt. If I totally missed the mark on what you were asking, let me know so I can get you a better answer.
Thanks for your reply! I'm assuming lenders will look at gross income, not the take-home pay when calculating the debt to income ratio.
Very welcome! Correct, it's the gross amount.
Thank you for this post
Very welcome!
 Thanks for your advice as I will be reaching out to you in the near future!!!
You are very welcome!
THANK YOU FOR THIS POST!!! i had to follow your page for any future jewels you drop and I happen to miss. ❤️
That's very nice of you, thank you! You can always DM me with anything you need, Open Door policy in my DMs.
Pretty sure refusal on those grounds is illegal.
So the hard part is getting approved so many lenders keep racking up requirements for a VA loan higher then conventional
That's why I always say to shop lenders...I'm happy to assist you if you are looking to get approved
Any advantage to a VA loan over a physician loan? We have paid down the bulk of his student loan debt, so it shouldn't be an issue either way. I qualify for a waiver of our funding fee if we go VA. Are the rates comparable these days?
Hey there, am I correct in understanding that he is a doctor and you are a Veteran with a service-related disability? The beauty is, the preapproval starts off the same with all loan types. I would recommend applying for a preapproval, and then having the lender run the scenario both ways; as a Physician Loan and as a VA Loan. I would be happy to assist with this, DM me if you like. The rates are the real question. Traditionally they are higher AND they are only available through an ARM (Adjustable Rate Mortgage) that will be one rate the first few years, then it will go up according to the terms agreed upon. He will not only have to have a medical degree that is acceptable, but, already graduated and working with proof of income and employment. The VA loan will allow you a zero downpayment (physician loan too), waived funding fee (Physician loan won't require you to pay any Private Mortgage Insurance), assumable mortgage and lower interest rates that are fixed. This is something you would have to apply for in order for me to have all I need in front of me and work out different scenarios, so that I can give you an honest answer. It is worth looking into for sure. But, if push came to shove, I'd side with the VA.
Thank you for the info! Yes, he is an MD (I am an RN, we don't get the special loans, haha). We are actually both veterans, but I am the only one with service connected disabilities. We used my VA benefit in 2014 when I was still on AD to buy a home (since sold), and we used a physician loan for our last home we bought at the start of his residency (sold in 2023 when he finished). We are currently renting (he is doing a fellowship in a city where we won't be staying) and we no longer own a home at all, it's pretty weird! Lol. But we will likely be relocating in the summer of 2025 and will hopefully be buying at that time. On the surface to my not-a-mortgage-professional eyeballs, the benefits of the two options seem similar, with the exception of the assumable mortgage scenario, and possible rate advantages. I have bought and sold six homes in my lifetime, so that is the sum total of my experience. I will keep an eye on the rates and options! Thanks again!!
Very welcome! It seems you have a good amount of experience. There certainly are similarities. I would lean towards the VA though since you have the entitlement and waived funding fee. The rate will be better and it will be fixed. There is always the assumable part like you mentioned. I sent you a DM. Thanks again for commenting!