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VA Loans

I heard that home buying in California is harder because investors buy homes with cash.  I want to use my VA loan because I wont have much of a down payment.  Will I have a hard time going this route and is buy a forclosure difficult as well?
  • June 17 2013 - Lancaster
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Answers (3)

Hi,

It is always good to try to place an offer on a home that your interested in with your VA loan. They are great loans to work with. Finding a home at a reduced price will be challenging with one however you can always try. There are foreclosures out there and depending on where the bank is, some may accept financing and some may not and require an all cash purchase at an Auction.

Good Luck!
  • August 18
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With most homes selling for above appraisal value you will need to pay the difference of purchase price and appraisal price in cash. If you do not have this extra cash it could be very challenging.

Often time buyers will go with a cash offer with a lower purchase price to ensure that the deal does not fall out of escrow last minute because of the buyer's finance contingency or appraisal contingency.

It is also not unheared of to have the seller request that the buyer waives their financing and appraisal contingency for this exact reason.

Good luck on you search!

  • June 17 2013
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Having just dealt with a buyer using a VA loan, and then getting feedback from other local realtors, I'm sorry to tell you that your offer will probably get low priority. This is due to the VA inspection that carries an added risk that the loan will not go through or cost the seller extra money.

Here is my suggestion for you:

Make your offer as strong as possible by bidding a bit more than you would normally, and signing a disclaimer that the seller will not have to pay for any VA repairs. You can either pay for them or cancel the deal due the financing contingency which you'll have to leave in the contract.

Also have your lender speak to the seller's agent and walk them through the process. Many agents are misinformed about VA loans and have an unnecessary bias toward them.

But they are great loans in relation to their terms, so stick with it! It's the least the government can do after ruining so many other facets of Veteran life.

Good luck.
  • June 17 2013
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