Aloha,
So you have found the "perfect fit" for your client. Getting up early on a Sun to spend all driving around from home to home is now over, You sit back and think " Thank You Lord" You reasure the client about what an excellnt choice they have made and how they will have many blessed years under their roof. The contract is matecioulsy signed and sent over to the Loan officer who promptly calls you back witht he bad news that we so hate to give " the property is not on the VA approved list" What a huge let down for all involved. I recently had a chance to work with a new realtor. I was excited for the introduction and wanted to get started on the trasnaction right away. Upon meeting with the client they presented me the DROA. After close review I noticed there had been non permitted work done which is a huge VA no-no. I had to share the bad news with them and begrundingly the search continued. Here are a couple of things one shoud be aware of when financing VA.
1. The homes overall appearance- is it in good condition, solid foundation, no structural problems.
2. If the last 4 numbers of the pproprieties TMK reads anything other then 0000 it first must be approved by the VA for Lending. The VA will need to see 27 different things and then send them to their attorney review. Just a heads up there is 1 man and 1 man only that works on the process at the VA. This means it could take a very long time. IF you are working on a property that is a CPR plan on it taking at least 45 days to get it approved.
I worked on a transaction about 6 months ago that was a cpr property not yet approved by the Va yet the selling agent had advertised it as " VA Approved" . One of things that the VA is going to be looking for is that there is a formed association. This could be a big problem if one of the neighbors does not like the other. In my opinion if you find a cpr property that is not approved by VA try to run. If you cant plan on it taking at lest 45 days for them to prove it. A uniform condo will go alot faster.
3. Litigation is a huge VA no-no as well. Depending on the litigation it usually has on a 25% chance of passing the Lenders strict guidelines.
That's all folks. Should you have any questions about the VA Loan Process please feel free to contact me
Mahalo
Dave White
VA Loan Hero
(808) 382-7444
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