Jimmy Kinley is my “go-to mortgage lender” and he is a veteran. So, discrimination against vets has him understandably upset.-Dennis Martin
I am both a veteran of the Marine Corp and home loan originator here in Denver and I am pissed off. When veterans are offering to buy homes in our competitive Denver real estate market, their offers are often put to the bottom of the stack and rarely accepted by Sellers. That’s a fine “Thanks for your service”; isn’t it?
“I don’t want to sell my house to a Veteran”
Sounds insane? Well, its happening. The Denver metro area is one of the most competitive markets for buyers in the country. If you want a $350,000 home listed in the multiple listing service and you are not bidding over list price, your offer doesn’t have much of a chance. You also should add some type of appraisal clause to convince the seller that you are willing to negotiate if the property doesn’t appraise.
My buyers getting Veterans Administration home loans are not being taken seriously. Their offers are getting put at the bottom of a stack of offers. As a United States Marine that makes me want to throw on my fatigues and put on my war paint. Yes, I am a little hot on this topic for a valid reason. I plan to single-highhandedly change these misconceptions and myths that are causing this to happen. That is why I hope you will not only read this post, but share it your Facebook, Linkedin, Google+, or whatever social media you may use.
Denver veterans do not deserve discrimination when trying to buy a home with a VA loan.
OK, now I truly believe that there are no red blooded Americans selling their home with a conscious thought that they don’t want to sell to a Veteran. Unfortunately, this discrimination may be coming from Realtors and those advising them. The longer a real estate agent is in the business, the more they may be remembering the way things used to be. They simply don’t realize that things have changed. My mom is a 30 year Realtor in Tennessee and she is probably going to call me out on this one. Sorry mom.
If an agent advises a homeowner to not accept a VA offer because it is not as good of an offer, I would challenge them to a discussion. My cell is 720-261-1410 and I would love to chat. I have been originating a lot of mortgages for well over a decade. I have been ranked nationally as one of the top producing mortgage people in the country at 2 of the largest lenders around. “The easiest loan I close is always a VA loan” The VA still believes that the Veteran earned this right and they look for reasons to say “yes” unlike every other loan that underwrites looking for a reason to say “no”.
VA Mortgage Loan Myths
- “The VA buyer is putting less money down so they can’t negotiate if the house doesn’t appraise”. I have VA buyers putting 20% down that get frowned upon because they are using VA. That way the rate is .5% better on a VA loan today than it is on a conventional loan after I provide a lender credit to pay the funding fee. I have buyers that could do 5% or 10% down payment conventional loans, but we use the VA loan because it is cheaper . Plus they can leave money in the bank account to negotiate if the house doesn’t appraise. All bias aside, I want the VA buyer because they don’t need any money down and they can pay more if needed.
- “The VA appraiser inspects the house and creates all kind of issues.” That’s just wrong! The only thing a VA appraiser does that a conventional or FHA appraiser doesn’t do is lean a latter up against the house and climb up to take a closer look at the roof. That’s it! And, by the way, the conventional and FHA appraisal is literally done on the same appraisal form, by the same guidelines, and by the same appraiser. That is another myth that’s not true. The bottom line is that all appraisers are going to point out obvious defects, hazards, or anything that could obviously affect marketability. I have had way more required repairs on conventional appraisals over the years that I have on a VA.
- “The VA appraisers are conservative and the value comes in low.” Wrong again! The VA appraiser uses the same exact comparable properties and adjustments that any other appraiser uses. Not only do I have considerably fewer low appraisals on VA than I do on conventional, they don’t go thru the new super computer to be picked apart and there is this awesome thing called the Tidewater Act. The Tidewater Act says that the VA appraiser has to notify the agents involved if the appraisal is coming in below sales price. The agents then have 48 hours to provide any comparable sales they may have used to estimate the value of the house. This makes sure everyone gets the input BEFORE the appraisal is sent in to the lender for review to ensure the appraiser didn’t simply miss something. WOW…I wish that this was a rule for all loans and all transactions!!
- “The VA buyer is not as strong as other buyers”. Arggg. This one makes my blood boil. I have VA loan buyers that buy million dollar homes, have perfect credit, make a ton of money, etc. In fact the VA has essentially the same rate on a jumbo VA loan as a regular VA loan unlike the jumbo conventional type loan that is a .5 to .75% higher. Plus, VA buyers don’t need to be as strong financially to qualify and close. Back to my original statement, the VA loan is the easiest loan I close. Not just a pre-approval, I said close.
Denver Realtors Can Help Veterans
If you are a Denver Realtor, I want you to ask yourself if you are looking at a VA offer as anything less than an equivalent offer to other loan types. If you feel that you may be leaning towards another offer because of these myths or “old school rules”, please take my expertise to heart. Give a vet a break and call me first . I really do want to talk about it. That will truly thank a vet for his or her service.
I hear stories of buyers writing letters to sellers to tell them how much their family wants to live in their home. I am told that appeals to the seller’s hearts and works. If my approval letter sent with the offer has the letters “VA”, shouldn’t that pull on some heart strings? If not, you need to remember that these men and women signed up to sacrifice THEIR LIFE for this great country and the very freedoms that allow you to walk down the street with your kids without the worry of all those horrific things you see on TV happening overseas.
These things are real, they are horrific, and that Veteran signed up to put their life on the line to make sure these horrific things don’t end up knocking on your front door. All I am asking is that you give them an even playing field in this competitive market when you and I both know they should simply have the advantage! Thanks so much for taking the time to read this Please share this post not for me but for all veterans that need a little help in this real estate market.
Contact me with any questions on the form below. Thanks!
Jimmy Kinley
Senior Mortgage Originator
Direct/Cell: (720)261-1410
Fax: (303)568-7430
Email: jkinley@ccmclending.com
License# MB100020560, NMLS 287498
To apply online please visit my website at www.KinleyLendingGroup.com
I’m attempting to purchase a house in the Phoenix area, and the operative word is “attempting”. I’ve put out 5 contracts in the last 3 weeks, and I keep on getting beat out. Even when it appears I have offered more than the competition. I have used an appraisal clause to cover a deficit between selling price and appraisal when it appeared the price would likely exceed the appraisal. Nope seller took a lesser offer. Offered over full price on another property to beat out the competition by at least $1,500, nope seller took the lesser offer. Had one I was going to make an offer on, but the selling agent said “most likely” it wouldn’t be accepted because of a slope in the backyard they assumed wouldn’t pass VA inspection. Two of the other contracts wasn’t quite as clear, but I have to believe the VA Loan was part of the decline. And one of those I wrote a letter basically begging them to sell their place to me and my family. I passed frustrated about 3 offers ago, it’s time to show them my war face. Thanks for the article.
Just happened to me in eauclaire Wisconsin was foreclosure the seller was Bank they took a lower offer because of it being a conventional loan I feel discriminated against
Your story sounds like a copy and paste to mine. I’ve beaten out at least 2 offers yet still do not have a house. Now I realize that the 0% down BS is just that. We’ll probably have to wait till we have 20% down to get a regular loan. I also think my realtor is not a very good advocate. I have very good credit and I’m not going overboard on price I’m trying to stay in my budget. It’s just inexperienced realtors making every excuse not to take the VA loan even seems like they have my realtor barfing out the same misinformation.
I am waiting to hear from our fourth potential seller (1.5 hours late so far). I am beginning to suspect that the VA nameplate is also holding us back. I wish I could assure the buyer that I will do right by them. I used VA to save a little money on the financing, not to intimidate the seller.
I searched this topic, because I’ve felt discriminated against from day 1 trying to find a home in the Denver area. I’m glad I stumbled across your article and would be interested in using you as our lender if this house we’re under contract falls through. My husband and I are both combat veterans and I’m still serving in the Navy Reserves, all we’ve heard from our realtor is “well you’re VA so it’s going to be hard to find a home.” It’s taken a toll on us during this process, after two tours in Afghanistan and the Gulf, we come back to the U.S. and are told our loan isn’t competitive enough to get a home. We were lucky enough to get an offer accepted on a Fannie Mae home here in Aurora, CO but because the bank has to do mold remediation before VA will back the loan, we will probably lose the house. We’re being told the house can just be opened to investors with cash/conventional who won’t care about mold, so our negotiation power is gone. Our realtor tells us unless we go conventional we may not get another offer accepted. So I’d be interested in finding a realtor who doesn’t discriminate against the VA loan as well.
Not all agents are REALTORS. However, There are a ton of REALTORS that are also Veterans. If you don’t feel as if your agent is working in your best interest, find one that will. Interview them until you find one that understands your needs. Sad that this is going on. Looking back at to when we bought our home (my husband is a VET,) I just realized that almost everyone involved was past or present Military. Our REALTOR is a VET, their REALTOR was a VET, and the Seller was Active Duty. The only one I’m not sure about was the loan officer. Greatful that we didn’t have to go through what you and your family are. Good luck. Thank you for your service!
To the VET, Jimmy, that wrote this. Thank you for your service. Thank you for speaking up and setting people straight.
South Florida – 10 offers, some over asking on the DAY they are listed. Most not even getting to the seller, but being halted at the realtor. It’s maddening. I have never felt discriminated against as a veteran, until I tried to use a VA loan down here. I have had VA loans the last 25 years with ZERO issues.
Semper Fi Jimmy, and thanks for what you are trying to do.
My husband, who is the veteran, and I have put in a few offers on homes in the Palm Bay, FL area. We too, feel that we are being discriminated against because we are trying to buy using a VA loan. These house were veautiful, and fit in my and our budget. Not sure what’s going on, but they have accepted other offers using conventional loans instead. What can we do, and what can you suggest? My email is silky81562@gmail.com.
Thank you in advance for your help.
It’s not that sellers don’t want to sell to vets, the V.a. loan process requires sellers to pay some closing cost. These additional cost usually get added to the sales price and at times over price the home. If buyer wants their own inspection other then the V.A. inspection and there are any items needing attention then sellers get two separate repair lists that don’t match. V.A. appraisers have at times come in low and although you can request a review this takes several weeks and can cause delays in closings. If initial appraisal is allowed and even if it ends the deal, the sellers is then required to use that appraisal for all other V. A. Loans. Speaking of extentions I have only accepted 3 V.A. loans but all three have needed extentions. In a sellers market if roadblocks are placed up then sellers will opt for the path of least resistance. In order of loans it would go Cash, Conventional, FHA and lastly V. A. So please don’t blame sellers , blame the v.a. loan process for pushing sellers away from V. A. loans.
Can you please help us we are diffinately being discriminated against with our V.A
LOAN.
I need some advise and answeres to why this is happening
Thank you Andrew Clawson
Please contact us to see if we can be of assistance dmartin@martinteam.com
This is Jimmy Kinley. I wrote the article and I have had a lot of success with my buyers by doing the following;
-As soon as the contract is written, I have my agent send me the listing agents contact info.
-I them call the listing agent and have a conversation with them about how the VA loan is the most misunderstood loan I do. I also tell them that the VA loan is the easiest loan i close day in and day out. I dispel some of the myths that i mention above in this article. I try to leave them with the confidence that the VA loan is not scary and that I know what I am doing. I also try to impress on them that my Veterans should “at the least” be on an even playing field.
I hope these tips help!
Jimmy Kinley
720-261-1410
jkinley@ccmclending.com
http://www.kinleylendinggroup.com
Hi Jimmy,
I hope you have some advice for me. I am a brand new realtor in Texas with no experience yet (except for a few unsuccessful negotiations), but me and my partner are looking to buy our first home on a VA loan. We have already had trouble with a previous home that negotiations fell through after inspection reported back issues with critical systems. Then we lost our loan with USAA because we were in too deep with it, but pulled out before option was over. Now it seems every house we look at, almost everyone of them only do cash/conventional. How can we convince a seller to accept our loan (once we get another one) when I have zero experience and its the only loan we can afford to use? Anymore advice or tips on the matter would be most appreciated! I definitely feel like the cards are stacked against us because we are getting beyond frustrated.
I will say this in the sweetest way I know how. “Get rid of USAA” Take it from a veteran that know this industry. USAA is overcharging you and they are, in my opinion, single handedly causing the VA loan to get a bad reputation. USAA screws up more VA loans that any lender out there. They don’t know what they are doing and they ARE NOT taking care of veterans. Get a local and reputable lender that knows VA and then have them call the listing agent every time you put in an offer. Don’t let your agent tell you not to write an offer because it says cash or conventional. Write it anyway. The law says the agent has to present it to the sellers and the sellers may actually want a veteran to buy there house. Once that offer is in, have your lender call the listing agent and educate them on why the VA is the easiest loan any lender worth their stripes ever closes. The myths that I pointed out above are everywhere and until the lender educates the listing agent, you may be losing out on houses that you could be buying. Good luck!
I have experienced this type of discrimination in both Washington, DC and California and have stopped looking because I get my hopes up and then always lose. Homeowners are enjoying the freedom that we helped provide by serving overseas in the military and are thanking us by shoving our offers aside. I even had one investor flipper tell me that he would only accept my offer if I agreed to pay $300.00 dollars a day for every day over 30 that the VA loan was delayed. I hope the government can help to change the process and reputation of the VA loan. How can we get we educate homeowners and investors? The one home I was able to purchase with the VA loan closed in 2 weeks and I was pleasantly surprised at how smoothly the appraisal went. Good luck and thank you for being our advocate.
I truly believe that that your lender needs to be the one that is calling on every single offer submitted and educating the listing agent. This is what I do for all of my VA buyers and it DOES WORK. This gives the lender a chance to dispel the myths that can cause the agents to look at the VA loan as a lesser loan. They are simply not true and I take every offer as an opportunity to educate the agents. This also gives me the chance to tell the listing agent that the VA loan is the easiest loan I ever do. I typically say, “Why wouldn’t my buyer use their VA loan? Even if they are putting 20+% down they should still use their VA loan. The bottom line is that the rate is a half percent better than the conventional rate. I can typically give them a rate that is a quarter percent better than the conventional rate and pay the funding fee if they even have one.” I believe that we can change the way Realtors feel about the VA loan. We just need to keep trying and make sure you are NOT using substandard lenders that make tons of mistakes. When they screw up they add to the Realtors fear of the VA loan. Bottom line, get a great lender and put them to work calling the agents. It will work if they do it. I have had a ton of success. I hope this helps! Semper Fi!
Semper Fi Brother and thank you for the post. I will have my realtor submit this with the next proposal. We were just turned down yesterday for the reasons you listed and because the listing agent is clueless. We have a down payment and money to cover deficits between appraisal and offer and our lender is calling the listing agent himself to ensure the seller of our good standing.
NO Thanks to those who are unwilling to learn do some research and maybe even bend a little for those who shed blood so they can in fact own or sell that home.
Where can we start listing the short sighted, narrow minded folks who continue to foster these beliefs? I expected that when I was overseas but not at home. If you are not part of the solution you are, or are part of the problem.
I have found that many Realtors don’t understand what a VA Loan is today. They are under so many assumptions that are not correct. I am glad to see people are speaking out about this and taking a stand. And for those of you who don’t know about VA Loans – educate yourself: http://www.thetruthaboutmortgage.com/va-mortgage-loans/
I’m in the Denver area and I have encountered the same problem. I am working with the Homes to Heroes program so my real estate agent and lender are extremely knowledgeable on VA loans. They have talked to the listing agents on the last 6 houses I put offers in on with no luck. What really gets me is all the houses that do not accept VA loans. Based on the definition this is discrimination. Has anyone ever thought to start a lawsuit against an agent/homeowner for saying no solely based on the fact that it’s a va loan.
I lost my father during the Vietnam war when I was 4 1/2. My grandfather fought as a naval officer in Greece in the first world war. My husband is a 30 year Air Force Veteran who was in the Gulf war and one of our children has served in the Coast guard. I am a “veteran” social work serving public interest in the mental health sector, the schools and health care.
I have served our nations children, teens, adults and now the elderly here in S. California’s Providence hospital home health. Today I felt all the things you folks write about and let me tell you, I wanted to put on some war paint myself. I felt like a second class citizen side by side with my proud 6 foot 5 inches hunk of a man who sat there next to a thirty something realtor looking bewildered at the talk of VA loans being less than, not popular and most disheartening, something the young man would need to “protect” the sellers interests around. Like our money was not good? The realtor and seller will get paid VA loan, conventional, or cash!! It also crossed my mind that while my man was in the Gulf, this young man’s only contact with battle was the teenage mutant ninja turtles. I was so upset!
We had never had a problem before with any part of a VA loan. We are in a very competitive market as well in a State where Governor Brown has vowed to end veteran homelessness. Well Governor, I think your fist step is to educate all the young and old realtors and bankers about VA loans. Dispel the myths and the discrimination. As far as those who served, I am sorry, truly sorry for the treatment and ashamed that greed has reached the ugly darkness of disrespect toward those who have protected us all our living lives. And for no good reason other than naivete and ignorance. Thanks for your wonderful article Jimmy!
Hi Everyone,
Thank you for writing this article. Just recently had a few experiences regarding this. I have buyers where the husband served in the Golf War. First house they wanted to make an offer on, the wife called the agent to see if they could set up an appointment to see the house. She stated that they were going to do a VA loan. The agent actually said to my buyer. “Don’t even bother, I never do VA loans. Won’t even present to my seller. I was shocked. I contacted the agent and asked, “are these your words or your sellers words?..he lied to me for sure…saying the seller preferred not to do VA loans. We passed on the house. Now, we are in the middle of another contract, where the financing is VA. The appraiser came back with the Tidewater thing and said we needed to give him more information. I did this. The listing agent is freaking out. Said she was backing out of our deal…because now there are problems with the appraisal because it’s a VA loan. Listing agent also stated her seller does not want to deal with any problems either and doesn’t want to proceed. I asked the agent, “oh, has the seller dealt with a VA loan in the past and had problems…she said no, I then asked, did you convince him that we may have problems, she said “yes I did. I’m contacting the legal department tomorrow morning MAR to find out what my next move should be on this. I have never heard this type of discrimination towards VA loans and it makes me sick to my stomach. Striping our Vets of an entitlement that they have earned and deserve. It’s just un-American! Wish me luck…pissed off in Michigan.
Hi Jimmy,
I know you’re listed in a different state than i am. I am a veteran myself, a first time homebuyer, i get filtered in the MLS about potential properties yet i keep hearing back that this property will only go conventional or FHA, i’m wanting to use VA i have my score up pretty well and the properties i’ve found interest in, its seems once they hear “He’s a veteran, and wants to go VA Loan” the doors seem to close. I feel when we come back from the war there should be more openness to help a veteran but its like we return and get stonewalled and forget the sacrifice it takes so that people can lay their heads down at night on a comfortable bed and pillow. I’ve seen more disrespect for being a soldier that has served than i ever had before going in and now i’m at that point in my life where i don’t want to rent, i have a great job and i’m looking to be stable by owning my own home but this process though i’m aware can be long and enduring it seems that for people who have been in realestate for decades still can’t negotiate on behalf of a war veteran. Its appalling. i’m writing from northern illinois any idea of what avenue i can take? Recommendations?
We just bid on a Fannie Mae foreclosure beautiful home here in GA, that has been on the market for several months. We were/are the only bidder. My husband is a 20 year Veteran of the USMC. We received a counter offer. Not for more money, but to tell us they didn’t want us to use the VA loan. When asked why, the answer was “well what if the hot water heater doesn’t work?” Great credit, great income with preapproval letter in hand. I’m severely disappointed. They’ve now said that suddenly overnight a bidder came out of nowhere so they asked for highest and best (now I assume they are trying to get more money out of us.) Our offer highest and best remains the same, which is above asking! Sad really.
This is a great article. As a long time Realtor myself, and a Navy veteran I can only go by my experience. The USAA comments above are pretty accurate as of a year ago, but they have improved greatly.
My experience, besides my own va loan which went smoothly, is that the VA appraisals take longer. This is almost universally understood among Realtors in my area, and I have witnessed it first hand. Jimmy you have more experience and see more of them come through, so maybe I’ve been unlucky, but even lenders are telling me to plan on 45 days.
To the folks wanting to make lists of offenders, or sue people, put yourself in the seller’s shoes. Right now I’m working on a listing that has 5 competing offers. The va buyer is competitive but if the seller can choose then they have every right to go with their gut feeling, patriotism aside. The VA could do their part with some good publicity and maybe some guarantees for sellers to have more confidence i them.
We just went under contract for a home in the Hampton Roads area with a VA friendly Relator whom I absolutely adore and is also a vet himself. We offered the full listing price for full closing cost by the seller and a reasonable cap on any minor repairs that might pop up. The seller is also fixing a few things before the appraisal. Im riding on the fact that :
1. I reside in one of the highest military populated reigins so buyers, sellers and agents are more than likely to be service connected and familiar with the VA loan process so everyone is well aware of everything.
2. The sellers previous contract fell through days before we hopped on it. And guess what? It was a ” Conventional” loan! There you go.
3. The realtor was very honest about some houses I wanted to look at. No, nope, needs too much work. He wouldn’t waste his time nor ours.
4. Because the house was just under contract it has gone through inspections and appraisals. This could possibly be adjusted with a VA appraisal but our realtor seems confident that we are good to go.
5. The seller didn’t hesitate to accept a VA loan offer.
In all: 2 days to qualify.
3 days to get under contract and accepted.
Closing date set for 30 days if appraisal goes well.
We were shocked at how quick and smooth it has gone so far. Easier than getting an appointment with the VA doctor!
I also want to add that it is important and will be in the buyers best interest to ask their VA lender for a Realtor Reccomendation if one is not offered ( ours was) to better secure a VA friendly one. If not, then shop around for one.
I’ve had my panic ” omg will the value appraise the same” moments and our VA friendly agent has been patient, positive and confident. The agent and lender make a world of difference. I feel that no matter the end, I will still walk away in many ways with a good personal experience with the VA loan process because of the supportive people involved. Thats my experience so far.
Ok, old article, but working to accept a VA loan…both of my wife’s and my parents were military…we’d LOVE to help out a vet, and are accepting the offer…but what makes us nervous is the loan process, and what we hear are more stringent inspection items which seem to be tied in with the loan itself?
So in a normal loan, an inspection is separate from an appraisal, the it can be decided what to pursue, what to leave to the buyer, what can be negotiated into a lower price…but it sounds like a VA might (in a tight timeline) make the loan contingent on getting things fixed in an unrealistic timeline to meet deadlines? That’s the fear right now, as timing a move while selling/buying is already precarious. Am I wrong in this understanding?
Not a Realtor, but I’ve used the VA loan and can talk a little bit about the process. On average, the VA loan takes about two days longer to get the appraisal out there. That seems to be the main sticking point, and it’s overblown because there are some horror stories about rural buyers that took forever. However, there are drop-dead times, and it equates to roughly two weeks. It’s not so different from conventional.
The VA Appraisal has elements of an inspection – but if you’re not selling a lemon, you rarely have anything to worry about. It’s the usual stuff – no water pooling at the base of the house, roof needs to be in good shape, hot water has to work, heater has to work, etc.
If you’re flat-out selling a fixer-upper, then yes – you should be honest and tell VA buyers this house won’t sell to them. The VA just won’t approve a house in need of repairs. But if you’re advertising your home as move-in ready and listing it for an inflated price, then it turns out the heater doesn’t work, the seller has to ask themselves whose fault it really is that the buyer walked away.
We are diffinately being discriminated against with our V.A Loan in Michigan
Is there any legal action we can take
Thank you
Just found this article and wanted to share my thought. We just got refused by a builder in the Orlando, Florida area because of us disclosing that we are planning on using our VA loan. My wife is an honorably discharged Army vet. We are absolutely outstanding citizens in terms of credit, financial stability, professional jobs and track records in all other areas of life, we are financially responsible and successfully owned other newly built homes and sold them in the past. This is plain discrimination, pure and simple, and based on my research is becoming rampant and epidemic. I am hearing more and more stories of home sellers refusing to honor VA loan buyers; many of them are stating a-priori they do not want VA loan recipients as buyers. Something will have to be done about the awful situation of DISCRIMINATORY treatment VA loan recipients are getting.
Same thing has been happening to me in new jersey. I’m on my fourth offer and still keep coming up short. I’ve offered asking price or better on every home but the sellers agent would rather persuade the seller to take a lesser offer because of “the red tape” with a va loan.. It’s disgusting..
Sorta, just happened to me. My realtor told me that our offer may not be as good as the other one on the table. And that they are suggesting I raise my offer and remove that I’m using VA for my loan.
And believe it or not, its STILL happening THREE years later in Tennessee…… smh….
My experience in California now that I was approved for my first VA Loan is that realtors go so far as to indicate on the listing various types of loans that will be considered but rarely is a VA Loan listed. Translation…don’t bother, we aren’t interested because you don’t have “enough skin in the game.” I beg to differ! If you are a Veteran, you have more skin in the game than should be needed to convince someone to sell to you who “never played the game” Very sad for the Veterans and exceedingly shallow on the part of the real estate industry.
Openly discriminated against after wasting an entire day looking at newly built homes (fully complete) in the Wildwood/Orlando, Florida area because of us disclosing that we are planning on using our VA loan! We were informed that we could ONLY apply to purchase a PRE-owned home if using a VA loan. So we are not “good enough” for a NEW home, but can “try” for a pre-owned? This is plain discrimination, pure and simple, and based on the previous comments from the past 3 years…. the situation is getting worse, not better. Something will have to be done about the awful situation of DISCRIMINATORY treatment VA loan recipients are getting.
Am seller with offer from buyer using VA loan. But, my house radon remediation, road maintained by community with no updated, legal agreement. Plus, my home is 1978 2 story rancher with full apartment under grade. Have read above r issues for VA. Also, from family of vets having negative experiences with VA, including low appraisals. Would luv veteran family to have my home, but my health may not survive another roller coaster ride with Veterans Affairs ! Any advice? Feel buyer agent had little zVA loan knowledge..
Michigan is very bad at discrimination against VA loans. But it doesn’t stop with three sellers or the realtors. The nucleus of the problem here in Michigan is the lenders. I have yet to buy a home with VA after moving here for my retirement job post military service and after trying a few local banks they all are super friendly at first, then they start trying to get people to just do FHA instead. No explanation why they just keep pushing people to switch into a program that puts more money into the banks pocket from money down, PMI, and funding fees. Banks are getting more and more snobby about not wanting to issue a loan backed by VA benefits. I know this because I have a score 680 and and income if 138k a year. My back in debt to income ratio for houses I have been looking at is only 34%. There is something strange going on.
Corey, this is actually a clear case of steering and has some pretty clear laws surrounding it. Laws I will not go into in a blog, but you should look into. There is no reason that it is ever in a clients best interest to move them from a VA loan to an FHA loan. Its worse for the client in every possible way. If I where you, I would file a complaint with the licensing authorities in your state. If you need a referral for a mortgage company in your state, I would be happy to do some leg work to try and find you one. Please email me directly and let me know. jkinley@ccmclending.com Thanks
As a seller in a hot market, where houses sell within a day, there is no reason to consider a VA backed offer. Period. It might make the author of this blog mad. It’s the hard truth. The author should blame the appraisal process. A home is worth what someone is willing to pay for it. I was excited when my home sold less than 12 hours after being on the market. After being jerked around by the VA’s demands and unresponsiveness, costing me money by the day when I can’t relist the home, I will never ever consider a VA backed offer. Never. The buyers deserve their benefits. However, as a seller, I’m not going to take less then I can and be forced to wait forever for responses. That’s just dumb. It is not discrimination, it is good business sense. And these are not myths, this is reality. I will never consider a VA backed offer. And it’s the VA’s fault.
That is awful! I understand why you are a little hot on this topic. That is valid.
I cannot believe they can discriminate on previous military service, or even a person’s job history. So long as a person can buy a house, then they should be able to buy a house.
Great article! I wish more people were talking about this.