VA loans offer your buyers something you may not be aware of but you will definitely want to know!
I'm currently involved with a transaction on one of my listing with a VA buyer. Although the Purchase and Sale Agreement had a financial contingency that asked for the sellers to agree to pay 6% which shall be applied to that portion of Buyer's loan and settlement cost that the lender is prohibited from collecting from the Buyer under VA regulations.
At first, I was so excited for my sellers at getting an offer, I failed to fathom the buyers request until the dust had settled.
I began to think, "There's no way the buyer can need that much money for closing costs so what in the world will happen with the rest of that dough"?
My curiosity lead me to ask the buyers agent why his buyers asked for so much, his reply was, "The VA allows for the sellers concessions to include payoff of credt balances or judgements on behalf of the buyer."
WHAT? I said you've got to be kidding!
Nope...and then he proceeded to show me in the VA Handbook a wonderful nugget in Chapter 8, page 12.
WOW! In my 12 years as a Real Estate Agent and Broker, I never knew this! Incredible!
Blog written by Patrick Flynn, Broker/Owner