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.
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!
Senior Mortgage Originator
License# MB100020560, NMLS 287498
To apply online please visit my website at www.KinleyLendingGroup.com