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Answers (6)
- wetdawgs
- Contributions:26833
Well said Jim.
- Angela Hardy, "AngelaHardy"
- Contributions:339
Jaci - Why jump to discrimination? More likely the condition of the home will not allow it to qualify for VA or FHA financing and they don't want to waste the buyers - or the sellers - time if the buyer is planning to use that type of financing.
VA and FHA have specific condition requirements. As an agent you should make yourself aware of what the appraiser will be looking for so that you can properly advise your clients when they are considering writing or accepting an offer that uses FHA or VA financing.
Try to see the good in people - don't assume they are out to discriminate against you or your clients!!
VA and FHA have specific condition requirements. As an agent you should make yourself aware of what the appraiser will be looking for so that you can properly advise your clients when they are considering writing or accepting an offer that uses FHA or VA financing.
Try to see the good in people - don't assume they are out to discriminate against you or your clients!!
- Jim Mitchell, "JimMitchellAZ"
- Contributions:3
Jaci, wetdawgs...not sure how things are in other states, but here in AZ when an agent (or seller) advertises 'No FHA or VA' it doesn't mean the seller wouldn't review or accept those offers, it typically means that the property won't qualify for FHA or VA financing due to their VERY stringent appraisal guidelines. The FHA & VA appraisers here in Phoenix are VERY picky, and they often flag things like peeling paint or a missing stove. In a short-sale or REO (which make up over 60% of our sales), the seller normally doesn't have the money (or the desire in the case of a bank-owned REO) to make those repairs to allow the VA buyer to finance the home.
I see a LOT of REO agents inserting that verbiage on their listings as a way to let the cooperating agents out there know that their listing willl NOT qualify for FHA/VA due to it's dilapidated condition. I for one appreciate that notification as it will save me a lot of time when I have an FHA or VA buyer.
Also, their seller (a bank) will usually NOT do the necessary repairs to enable it to be financed by anything other than a conventional loan (20% down typically) OR possibly an FHA 203(k) rehab loan.
A lot of the REO sellers (banks) that we work with here in AZ do NOT like the FHA 203(k) rehab loans due to the longer escrow periods and possibility of it falling-out.
I completely agree with you that if a 'normal' seller with a home that's in good condition would agree to NOT consider a VA loan OR an FHA loan, they are eliminating a LOT of potential buyers. Both are EXCELLENT financing products for our Veterans and the first-time buyers.
I would use a VA loan myself if I was a Vet!
The only reason I could think that a 'regular' seller would not want to accept a VA contract would be the VA 'non-allowable' expenses; those are the fees that the buyer CANNOT pay and the seller is required to pay, usually the escrow fee and the lender's fee.
- Amanda Thomas, "amandathomas"
- Contributions:177
Property condition is a factor for certain financing types. Distressed properties, for example, are limited in advertisements for cash or conventional financing only when a seller doesn't have the money to repair issues that could prevent a buyer from successfully securing financing.
Here is a quick link that helps to disclose some of the conditions FHA imposes on property condition: http://www.ehow.com/list_6644325_house-condition-requirements-fha-loan.html
Here is a quick link that helps to disclose some of the conditions FHA imposes on property condition: http://www.ehow.com/list_6644325_house-condition-requirements-fha-loan.html
Yes, it's less in the seller's pocket, I agee. So, to advertise this up front "NO VA" could be discriminating, because the buyer could offer more to cover this cost for the seller.
I will ask the seller's agent why they've advertises this, get their reasoning and get back to you on this.
Thank you for the response.
Jaci
I will ask the seller's agent why they've advertises this, get their reasoning and get back to you on this.
Thank you for the response.
Jaci
- wetdawgs
- Contributions:26833
Government loans place additional financial and performance obligations on the seller. Therefore, a seller is likely to end up with less in pocket - sometimes considerably less than if a buyer that qualifies for a conventional loan.
Most sellers chose the route that gives the most in their pocket with the least work. So, while it is discrimination in one sense of the word, it sounds like it is the seller's choice.
Most sellers chose the route that gives the most in their pocket with the least work. So, while it is discrimination in one sense of the word, it sounds like it is the seller's choice.
It just seems like discrimination, if the seller advertises "NO VA or FHA". Especially, for VA.
Actually, the seller is not doing the right thing for themselves, because they loose out on a huge pool of buyers. And, when you're ACTIVE military, you have more job security.
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