Can VA beat out Homepath lending to get this bank owned house?I was feeling pretty confident that we might actually get this bank owned house we put a bid on. We bid $14,000 over the asking price, which already seemed to be an inflated price compared to homes around it. It's a Fannie Mae Homepath house so with the Homepath financing there's no mortgage insurance and no appraisal.Well we put in our bid with the Homepath financing, but then meet with a different lender (our previous one was not very straight forward or clear on things) and find that we are not eligible for the 3% down on a Homepath because my husband doesn't have a 660 credit score and we'd have to put 20% down instead. Well that's not going to happen so we went with the VA at 0% down. Our lender said everything looked good and wanted our agent to tell the listing agent that we would be able to close quickly. He also said that when listing agents see the name of the bank we are going with that they know it's a solid lender.Going with that means that now we'd have to get an appraisal and I feel like that right there may sway a bank to choose someone else even if we were already offering the most and everything else seemed good. Because if the bank knows that we are offering way more than it should, they figure it's just going to be a hassle and take the 2nd best offer. We were told to offer not just the highest, but the best and I am afraid that having to change to VA at the last minute (our agent had to resubmit the paperwork) that that just knocked us out of the game.Am I way off base on my thinking or is there some truth to that?June 08 2013 - Everett00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.