One of my agents came to me with a dilemma today that I've never heard before. I've done some research but I'm not quite sure if I have all the correct information.
Here is the situation:
Our agents buyer purchased a foreclosed home that was bid up over list price and is due to close in early June. The FHA appraisal came back today at $9000 less than the agreed upon sales price. The VA said NO to reducing the sales price, but here is our counter offer........
Buyer to obtain a VA vendee loan and it must be with Bank of America in Dallas. Up to 108% financing. 580 FICO with good credit. 4 1/2 % - 30 year loan. 2% funding fee can be rolled over to loan. Buyer does not have to be a vet. Home sold AS-IS. No appraisal will be required. Closing to be before July 30, 2009. Good Faith Attached.
Information on VA Vendee Loans
So tell me, how on earth can you get a VA vende loan with no appraisal knowing the FHA appraisal came in $9K less and be serving your client best interests? I'm shaking my head wondering...what the heck?
What would you do? What seems like the right way to handle this situation? Have you dealt with a similar situation? Please share your thoughts and ideas and help everyone to understand how best to handle a situation such as this one.