There is an old sales saying, “A confused heart says’no’.”
Nothing is more true when it comes to Veterans Affairs mortgages. This is one of the really most disappointing things we have done in the market over the last two years. Veterans Affairs loans appear to be abandoned as substandard or “dangerous.”
As a background, VA loans are government-guaranteed and veterans can buy a home without a down payment or at a low price. So why don’t some sellers seem to consider VA mortgage offers?
First of all, there is a misunderstanding that since this is a zero-down mortgage, veterans may be unlikely to close it. But on the contrary, this is simply the way these loans are designed to make it easier to buy a home for a veterinarian. In the background of the Department of Veterans Affairs to launch, there is a huge device to assist civilians trying to settle these homes. So why don’t some sellers seem to consider VA mortgage offers?
The second misconception is that the house must be untouched. Yes, Veterans Affairs appraisers impose minimum asset requirements (MPRs) that require homes to meet safety and habitability guidelines. However, contrary to common belief, requirements are usually very modifiable. The most common are railings, GFCI outlets near water sources, and smoke / CO2 detectors.
Not only sellers, but some realtors also appear to discriminate against Veterans Affairs loans. The reason for this can be summarized in the fact that some realtors simply do not understand VA loans. They often mistakenly assume that dealing with a VA loan buyer is riskier, more costly, and more difficult to close than other types of loans. This lack of understanding means that sellers often pass these offers (again, confused minds say no). My team and I work with a veterinarian. If they aren’t the best, I always give their offer a strong second look. My partner and I just accepted one of our lists and felt it was really good. That’s the bare minimum we can do for these brave men and women.
Keep in mind for veterans there as my team is “VA certified” by our lenders to process your transactions. We will also work harder to ensure that listed agents (and their sellers) have a complete understanding of how these loans work. Veterans will inevitably see a resurgence in acceptance as sellers lose leverage and receive multiple offers for their assets in the near future. I personally look forward to the day when veterinary placement will be much easier.
Seth Lejeune is a REMAX HOMEPOINT partner / team leader in Royersford and can contact firstname.lastname@example.org or 610-804-2104.
Why VA loans are discriminated against in this hot market
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