Thursday, July 30, 2009

Trouble with Veterans Getting VA Home Loans

There are reports of trouble for veterans trying to get VA Home Loans.
Here are some of the examples of trouble spots you need to look out for:

Cash is king. Many VA Home loan applicants are being overlooked by banks that get offers for cash. For example, it has been reported that veterans seeking home loans were applying for a $300,000 mortgage, but someone offered $270,000 cash and the bank took it. This cash over VA Loan has been reported many times. Beware! This is totally unfair.

Veterans have also been getting low balled on home appraisals. For example, you want to buy a home for $300,000, make an offer, but the VA appraises it at only $280,000. You don't get the loan. Then, someone else offers $310,000 and gets the home via a conventional lender that appraises the house at over $310,000. Beware of this as well. Totally unfair.

The last thing with VA Home Loans you need to be aware of is that the VA will not loan on a home that needs work. The problem is there is no definition of what "needs work" is, and many homes on the market are foreclosures and need work! Catch-22. We have heard of a VA loan being denied because of peeling paint. Very minor, but again the house "needed work"!

Banks are also stalling on VA Home Loans for the above reasons.

Here's the lowdown on getting a VA Home Loan. If you know the house will get multiple offers, chances are someone is going to bid higher than the VA will pay. Second, the house needs to have no repairs needed. At least visible that get noticed on an inspection. Work with a bank that specializes in VA Home Loans.

VA Home Loans are some of the best available. It is the ONLY loan left that allows you to put zero down. It is a way of thanking our veterans, but the real estate market being what it is, it is getting difficult.

Click Here for more information on getting a VA Veterans Home Loan.

Click Here for information on college financial help for veteran's children

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