OK, we have two offers on our house.
One is a VA loan, the other is conventional.
Both are for the asking price, and both seem anxious to buy.
Here's the dilemma:
The VA loan Offer, which I have not yet accepted, comes with a bunch of baggage.
I'm told that I need a Termite Inspection - even though I have had quarterly treatments from a professional pest control company for the past 8 years, which includes termite monitoring/reporting.
The Termite inspection must be paid for by the seller (me), and cannot be added to the sale price of the property.
I'm also told that I have to provide - at my expense - an appraisal for the buyer, and there is wording in the "third party finance addendum" that prohibits the buyer from paying more than the appraised value, and I cannot add the cost of the appraisal to the sale of the property.
Other things like I have to have all shrubbery, bushes, trees, vegetation, etc 18" away from any part of the building, and mulching has to be at least 18" away from the foundation.
WOW!
That pretty much destroys our "country look", and pretty much requires the total removal of all plants along the back wall of our home.
The other offer - the Conventional Loan - has none of these stipulations/requirements.
It's like, in an attempt to "help" the Veteran, this VA Loan is all but guaranteeing that I don't choose his offer over the other.
I'm eligible, myself, for VA loans, but have never used one -- I've always found it much simpler and more cost effective to go "conventional".
To those of you who may have used VA loans - what's the attraction? From what I understand, it's not a better interest rate, or better guaranty of financing... why would one go through all the red tape of a VA loan over conventional?
Is it that the down payment requirement is so much less?
My neighbor, also a Vet, says he never used a VA loan, either, because of all the red tape and frustration.
One is a VA loan, the other is conventional.
Both are for the asking price, and both seem anxious to buy.
Here's the dilemma:
The VA loan Offer, which I have not yet accepted, comes with a bunch of baggage.
I'm told that I need a Termite Inspection - even though I have had quarterly treatments from a professional pest control company for the past 8 years, which includes termite monitoring/reporting.
The Termite inspection must be paid for by the seller (me), and cannot be added to the sale price of the property.
I'm also told that I have to provide - at my expense - an appraisal for the buyer, and there is wording in the "third party finance addendum" that prohibits the buyer from paying more than the appraised value, and I cannot add the cost of the appraisal to the sale of the property.
Other things like I have to have all shrubbery, bushes, trees, vegetation, etc 18" away from any part of the building, and mulching has to be at least 18" away from the foundation.
WOW!
That pretty much destroys our "country look", and pretty much requires the total removal of all plants along the back wall of our home.
The other offer - the Conventional Loan - has none of these stipulations/requirements.
It's like, in an attempt to "help" the Veteran, this VA Loan is all but guaranteeing that I don't choose his offer over the other.
I'm eligible, myself, for VA loans, but have never used one -- I've always found it much simpler and more cost effective to go "conventional".
To those of you who may have used VA loans - what's the attraction? From what I understand, it's not a better interest rate, or better guaranty of financing... why would one go through all the red tape of a VA loan over conventional?
Is it that the down payment requirement is so much less?
My neighbor, also a Vet, says he never used a VA loan, either, because of all the red tape and frustration.
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