Selling a home to buyer using VA loan | TigerDroppings.com

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WHATDOINO
LSU Fan
Member since Dec 2008
4444 posts

Selling a home to buyer using VA loan


Is this harder to do than conventional?








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peopleschamp
Wright St. Fan
Baton Rouge
Member since Feb 2006
6576 posts

re: Selling a home to buyer using VA loan


It took me longer, but you can still lock in a rate when it gets closer to being wrapped up. I think a conventional loan is better. You usually get a better rate. The problem is if you don't have enough to put down then that's why some people use a VA loan.





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NELAtigers
New Orleans Saints Fan
Member since Nov 2010
1278 posts

re: Selling a home to buyer using VA loan


I believe the seller has to pay an additional fee if the buyer is using a VA loan. VA requires certain inspections to be more thorough. (i.e. termite inspection must include all wooden structures including fences, sheds, etc. I don't think other loans require this.)





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hawkeye007
LSU Fan
greenwell springs
Member since Feb 2010
1959 posts

re: Selling a home to buyer using VA loan


a VA buyer is a good thing. the rates are as low as conventional and there are NO FEE's the seller has to pay. now the seller can pay closing cost just like any other loan. the house is required to have a Termite inspection and appraisal. no home inspection required. people in the real estate world who dont know about VA loan think they are hard to get done but that not true.





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TortiousTiger
Baton Rouge
Member since Jan 2007
12667 posts

re: Selling a home to buyer using VA loan


VA loans are much better than conventional loans.

There is a little more paperwork involved, but not much. The property also has to pass a VA appraisal.

The benefits to the buyer from a VA loan is that you'll get the lowest rate with not necessarily the best credit score, you dont pay PMI, and you can get a loan with 0 down up to 412k.

The buyer does have to pay a "funding fee" for the VA loan. This covers the cost to the VA to secure the loan up to an amount.

VA > Conventional

There shouldnt be any major disadvantages to the seller as long as the home passes appraisal.






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doublecutter
LSU Fan
Hear & Their
Member since Oct 2003
2612 posts

re: Selling a home to buyer using VA loan


I know that some people responded that VA doesn't require inspections. I hope they are right about that, about 25 years ago they did. We built a new spec house and put it up for sale and the guy we sold it to went VA. There was a VA inspection and they came up with a list of really odd stuff that we had to get done. Most of it was small stuff, but one item I remember was that we had to paint the "inside" of the galvanized gutters we had installed on the house.





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WHATDOINO
LSU Fan
Member since Dec 2008
4444 posts

re: Selling a home to buyer using VA loan


quote:

There was a VA inspection and they came up with a list of really odd stuff that we had to get done.




This is what I have been hearing, lots of little things that are required to be done in order to be approved


The home Im selling is around 60 years old, so there are bound some little things needing repair






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peopleschamp
Wright St. Fan
Baton Rouge
Member since Feb 2006
6576 posts

re: Selling a home to buyer using VA loan


I had 2 VA loans. The 2nd one has a higher fee. They give you a break on the first VA loan. Its based on percentage of house value. My rate was best with the conventional loan and I had money to put down. In my situation I got a better deal on my 3rd home loan with a conventional. I was surprised how much faster it went than the VA process.





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TortiousTiger
Baton Rouge
Member since Jan 2007
12667 posts

re: Selling a home to buyer using VA loan


i've done two in the last five years. No inspection is required...

I'm sure if there are major issues there might be a problem, but that's no different than any other mortgage.






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