Comments on: Friendly Fire: A VA Loan Debate

By: Andy

Andy — Sat, 08 Sep 2007 08:08:33 +0000

Hmmm… VA – Nightmare who would have thought… Well, I to am living it; and its costing me cash out of my pocket!

My buyers wanted to do the VA loan even though they said they were also approved for a conventional one also. They wanted me to include the closing costs in the purchase price so they could rap it up in their mortgage. OK, I can go for that I guess. We were supposed to close on Friday the 31st and what happened on the morning before? We received a phone call that the appraiser would be out a little bit after noon!!! ARE YOU KIDDING ME???? And it just gets better! So when the appraiser comes to the door I kenneled my dogs real quick and walked through the house with him. On his way out he said, “you can tell them everything looks good here.” “Great,” I was thinking… I received a phone call around dinner time (as the buyers were doing their final walk-through) that the appraisal was coming in low and that they couldn’t find any comps. What? Somehow the appraiser came up 500 sq ft short!!!!! Did I tell you that I never even saw a tape measurer or any other measuring device the whole time he and I walked though the house! This chumps appraisal came in below the tax value – WAY below – almost $30K below the tax value and do you think the buyers agent listened to our plight to send another appraiser out or just send the original one back so I could have my contractor lend him a tape measurer and show the guy how to use it; nope. I received an email with an Amendment to Purchase Agreement @ the new appraisal price and they still wanted me to include the closing costs!
The saddest part of this whole thing is the buyers get their earnest money back because it ‘was the financing’ that fell through, I had to rework my loan for the home I was buying and had to come up with an additional $77K to close that deal, and I have to continue paying the bills at the old house until I can get another buyer! In the future, I will only accept an offer with VA financing if: the buyer signs over a signed non-refundable deposit form with the non-refundable check for $40K and a 10% check for the earnest. Oh yea, there will only be a 7 business day window to have any and all appraisals completed.

By: Buckwheat

Buckwheat — Fri, 26 Jan 2007 00:17:25 +0000

I banter, Sparky bickers. I have more class. He has more…well, this is a public forum, so I’ll just say the two words end the same.

By: Sparky

Sparky — Thu, 25 Jan 2007 23:30:04 +0000

Bryant, coming from you, that means a lot. Thanks! We have some really great and fun ideas for this site, so stay tuned!

By: Bryant Tutas

Bryant Tutas — Thu, 25 Jan 2007 22:32:17 +0000

Hey Sparky and Buckwheat, I love this blog. I think you guys are on to something with all the bantering(bickering) back and forth. Excellent format. Oh, I almost forgot to comment on the post. Good post:)

By: Buckwheat

Buckwheat — Wed, 24 Jan 2007 20:07:37 +0000

Okay Sparky, I think we covered that pretty thoroughly! What do you think?
Do you ever wonder if we talk too much?
Well, there’s bullet holes in the blog, I guess it’s time to move on to something else.

By: Sparky

Sparky — Wed, 24 Jan 2007 03:14:41 +0000

Susequent??? Is that some native Indian tribe here in Washington? Maybe a long lost cousin to Susquatch? And leave my wife out of this, okay? I wear the pants in this family, thank you very much! And furthermore, let me just say that I…hold on, my wife’s ringing her bell again….

By: Buckwheat

Buckwheat — Wed, 24 Jan 2007 00:56:49 +0000

Maureen, I rarely use VA a second time for a repeat client. The funding fee is too high on ~~susequent~~ subsequent usage. If the clients have maintained a decent credit profile with their VA mortgage, conventional financing will almost always beat what VA offers.

By: Buckwheat

Buckwheat — Wed, 24 Jan 2007 00:52:57 +0000

Sparky, go ahead an puff your chest out. You know you can’t stay mad at me. Your wife won’t allow it!

By: Sparky

Sparky — Wed, 24 Jan 2007 00:13:47 +0000

Maureen, I think you’ve nailed it. Most of the apprehension with marketing homes to VA Buyers comes from a lack of agent knowledge and experience. Personally, I don’t have any problems counseling my Sellers to list their home as available to VA Buyers. However, I do have problems with certain really snotty, know-it-all Mortgage Lenders who try to tell me how to do my business. I’ve helped out a number of VA appraisers, as well, to find meaningful comps. Thanks for your comments!

By: Maureen McCabe

Maureen McCabe — Tue, 23 Jan 2007 23:45:49 +0000

Bucky and Sparkwheat: I have run into listing agents and sellers scared of VA offers, we don’t do a lot of them here, I started out in Dayton though and there they do lots of VA loans so it does not bother me. I also sometimes assume I am working with a VA buyer… they were a VA buyer when I met them. They come back from the lender as a pre-approved conventional no money down borrower. I assume their credit is good and it is easier for the lender? I had one low VA appraisal last year but we found another couple of comps for the appraiser.