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VA SELLERS
VA SELLERS
MYTHS & MISCONCEPTIONS
MYTHS & MISCONCEPTIONS
If you're a VA Loan home seller, we're prepared to guide you through the process. When it comes to appraisals, we know there are a lot of myths & misconceptions among sellers and even other real estate professionals.Your Flotilla Military Division Partner can make sure you're taking full advantage all of your VA benefits when it's time to sell your home—such as VA loan assumption, using a VA loan to purchase investment properties, knowing Tidewater and Reconsideration of Value processes when it comes to your home's appraisal, and closing cost requirements.Contacus us at (405) 977-0207 or military@flotillarealty.com!
VETERANS ARE STRONG BUYERS!
VETERANS ARE STRONG BUYERS!
80%
80%
VA LOANS CLOSE
Highest of any loan productVA LOANS CLOSE
722
722
AVERAGE
CREDIT SCORE
AVERAGE
CREDIT SCORE
40.6%
40.6%
DEBT-TO-INCOME RATIO
DEBT-TO-INCOME RATIO
25%
25%
MAKE A
DOWN PAYMENT
MAKE A
DOWN PAYMENT
$40K
$40K
AVERAGE
IN ASSETS
AVERAGE
IN ASSETS
VA SELLER FAQ
VA SELLER FAQ
If I am a VA seller, can my VA loan be assumed?
Most likely YES. Before putting your home on the market, confirm with your mortgage service provider that it is assumable. If it is, it may be assumed by a VA or non-VA eligible buyer. However, if assumed by a non-VA eligible buyer, the VA seller’s eligibility stays tied up with the loan on the house you are selling. If a VA eligible buyer purchases the home, the VA seller can get their VA eligibility reinstated in full.
Are VA appraisals unfair and stringent?
NO. Actually, VA appraisals are one of the fairest appraisal processes of all of the loan products. They have a system called Tidewater which gives your listing REALTOR® 48 hours to provide data on comparable sales if the appraiser is not able to valuate your home at the sales price. Additionally, if the appraisal comes in below sales price, the veteran can contest the appraisal through the Reconsideration of Value process with the VA to bring the valuation closer to sales price if they so choose. The VA appraisal is the only process that allows this much input from the consumer and seller.
If my house under appraises, does it mean that I am stuck with that VA appraisal when I put it back on the market?
NO. Unlike FHA, the appraisal doesn’t stay with the home. It is tied to the veteran’s case number. So that particular veteran can’t get another appraisal on the same house. However, any other buyer, including a VA buyer, will need to have a new appraisal. www.benefits.va.gov/homeloans/documents/circulars/26_11_14.pdf
Will I have to pay for a lot of expensive appraisal repairs?
The VA does not require the seller to pay for any repairs. If Minimum Property Requirement Repairs are required, it can be negotiated between the buyer and seller. The buyer also has the right to ask the VA to waive the requirements. Appraisal Minimum Property Requirement Repairs should only apply to safe, sound, and sanitary defects.
Will I have to pay for the termite inspection?
NO. Oklahoma is one of nine states in which the veteran can pay for the termite inspection.
Will I have to pay for non-allowable VA closing cost for the buyer?
Typically, NO as long as the loan origination fees are below 1% which is the norm, although not required.
Since VA buyers are putting zero down, does that mean they are financially a weak buyer?
NO. VA buyers are typically one of the strongest and most stable buyers you can hope for. Job security is a major advantage with active duty buyers still serving, and many retired veterans have passive income with retirement and disability.In 2021, the average FICO score for a VA loan was 722 which is considered a GOOD credit score. Most veterans put $0 down because it is a benefit they earned for serving their country. It doesn’t necessarily mean they don’t have the money, more likely they don’t want to take it out of investments to tie it up in a house.
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