It seems I am becoming the VA Loan Expert in my local area of the Bay Area of Fremont, Hayward, San Jose and surrounding cities. First time buyers who have graciously served our country in some form, are finding value in their VA Loan options. It is a great loan and fully backed by the government so no PMI is required which can save the buyer a lot of money. The closing costs are split between the seller and buyer. There are certain non-allowable fees required to be paid by the seller, so this again is a money saver for VA borrower. It is a great program, and Realtors can be successful IF they know what they are doing.
The problem we are experiencing today, is the poor condition of homes being sold, most of them being REO's. An experienced Real Estate agent should do a thorough walk-thru on all potential homes prior to submitting offers for their clients. A VA Loan reruires a Section 1 Clearance, and banks aren't paying! With the large number of homes on the market under $300k being bank-owned, we are discovering a challenge for first time buyers using their VA loan options that are trying to purchase under $300K. Don't get caught in an escrow without knowing all the facts and requirements of a VA Loan. Buyers make sure you do your due diligence, and interview your Realtor prior to signing an agreement with them. Make sure your Realtor is a seasoned VA expert and has closed some deals. Your deposit could be at risk if you don't!
I see the Real Estate market under $300K as a potential for investors to grab up some homes, spruce them up and resale them to our large VA group! It is a niche market starting to increase. I reviewed our MLS here in our local market under $250K. Most of the homes were REO'sthat all stated in the confidential remarks: "needs TLC. garage converted, buyer to verify". These homes would NOT pass VA. So lets grab them at 80 cents to the dollar and help our market. Of course this would not work for the FHA buyer due to the 90 day rule. Wow. Geez, there always seems to be some glitch to stop the growing market!
You have questions? I am the VA queen!