VA loans for military homebuyers in San Diego, CA have become popular once again. The hot buyer’s market in the first half of 2009 was a big opportunity for military homebuyers to take the plunge and buy a piece of San Diego real estate. After all, the market was ripe with foreclosure bargains, low interest rates, first time homebuyer tax credit and the ability to use the veteran benefit to buy a home.
A sudden interest in VA loans for military homebuyers started to emerge overnight because the real estate market started to change. With stricter financing guidelines, those eligible for VA loans became the only market sector that could get a loan with ZERO down. In this economic recession having a steady job is also very important when applying for mortgage financing. The stigma held by lenders and real estate agents against VA buyers quickly shifted and the military homebuyer became the new prized client. Real estate agents who realized the business potential attended seminars to brush up on how to work with VA loans for military homebuyers. Consequently, military members started to feel respected once again, after being all but shut out during the boom. By the third quarter, a problem started to emerge with this newfound market segment in high demand.
Using the VA loans for military homebuyers in San Diego, CA was becoming a challenge in getting their offers accepted by sellers. Lenders of bank owned properties were benefitting from having too many buyers competing for deals or multiple offers and were reluctant to accept a VA offer. It’s "too much hassle, more costly and longer to process" were the responses coming from REO managers about offers submitted with veteran loan approval . It began to take a toll on the market. Suddenly, there was a growing reluctance to work with VA loans for military homebuyers. Real estate agents felt the frustration of having to spend hours showing properties and submitting multiple offers only to get their VA offer rejected for an all cash, conventional or even FHA offer instead.
Furthermore, the much speculation and talk of the foreclosure shadow inventory being released to ease the inventory shrinkage didn’t happen. What we got was a slow trickle that whipped up the demand, increased prices and squeezed out more VA buyers. How could it have gone sour so quickly? Click here to learn more about VA loans for military homebuyers in San Diego , CA
Lorraine Santirosa works with military families who need to buy or sell their homes as they relocate to and from the San Diego area.