Best answer: Do Realtors dislike VA loans?

Many sellers — and their real estate agents — don’t like VA loans because they believe these mortgages make it harder to close or more expensive for the seller. … Are less likely to close than other types of mortgages. Take ages to reach closing. Have appraisers who are slow and routinely undervalue homes.

Are VA loans a pain for sellers?

Are VA loans bad for sellers? Not necessarily. Accepting an offer from a buyer using a VA loan when selling your home can be just as difficult as a buyer using a conventional mortgage. There are many myths and misconceptions about the VA loan, but you as a seller should have nothing to worry about.

Do sellers prefer VA or conventional loan?

Some agents advise home sellers to take conventional loan or cash offers, even if they are lower than VA offers, because those options are perceived as less hassle than VA loans. … “Choosing a conventional offer over a VA offer is not considered discrimination.”

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Do Realtors get commission on VA loans?

Fees or commissions charged by a real estate agent or broker in connection with a VA loan may not be charged to or paid by the veteran-purchaser.

Do buyers like VA loans?

VA mortgages are attractive to mortgage lenders because the loans are backed by the federal government. The lender won’t lose money if the buyer defaults. These are arguably the best mortgages out there for borrowers. … Yes, even requiring zero down, VA borrowers paid lower rates than FHA and conventional borrowers.

Why do Realtors hate VA loans?

Many sellers — and their real estate agents — don’t like VA loans because they believe these mortgages make it harder to close or more expensive for the seller. … Are less likely to close than other types of mortgages. Take ages to reach closing. Have appraisers who are slow and routinely undervalue homes.

Why are VA loans bad?

The lower interest rates on VA loans are deceptive.

Both will end up costing you much more in interest over the life of the loan than their 15-year counterparts. Plus, you’re more likely to get a lower interest rate on a 15-year fixed-rate conventional loan than on a 15-year VA loan.

Who pays closing costs on VA loan?

When using a VA loan, the buyer, seller, and lender each pay different parts of the closing costs. The seller cannot pay more than 4% of the total home loan in closing costs. However, their portion of the closing costs includes the commissions for buyer and seller real estate agents.

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What are the pros and cons of a VA loan?

VA loan benefits and drawbacks

Pros Cons
No down payment required Must be eligible based on military service
No loan limits Tougher appraisal requirements
No income restrictions Longer wait in between refinancing than conventional loans
No mortgage insurance required VA funding fees up to 3.6% of the loan amount

How often do VA loans get denied?

Some veterans are denied based on military status, credit history, lack of income or the loan terms they are seeking. Overall, about 15 percent of applications are denied, but some may be able to reapply.

How can I avoid closing costs with a VA loan?

Now, you know there are closing costs on VA loans, but what if you don’t want to or cannot bring those costs to closing? The most common way to overcome bringing these funds to closing is by seller paid closing costs and VA sales concessions. Remember, the seller is NOT required to pay the buyer’s closing costs.

Does the VA loan cover closing costs?

One of the big benefits of VA loans is that sellers can pay all of your loan-related closing costs. Again, they’re not required to pay any of them, so this will always be a product of negotiation between buyer and seller.

Do VA loans require a down payment?

You don’t need a down payment. … With a VA loan, you can buy immediately, rather than years of saving for a down payment. With a VA loan, you also avoid steep mortgage insurance fees. At 5 percent down, private mortgage insurance (PMI) costs $150 per month on a $250,000 home, according to PMI provider MGIC.

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How strict are VA loans?

In issuing a VA loan, a lender can choose to add any number of property restrictions. Some lenders are extremely strict, while others are more accommodating. For example, while the VA allows mobile home purchases through the VA loan program, many lenders refuse to extend financing on these properties.

What will fail a VA inspection?

What will fail a VA appraisal? If a home fails to meet the VA’s Minimum Property Requirements (MPRs), the home will fail the VA appraisal. MPRs ensure the home is move-in ready so veterans won’t face a long list of expensive repairs after closing on the home.