Last month, San Diego County saw its highest home-sale count for a March month since 2006 as it entered another spring home-buying season, Tuesday's numbers from DataQuick show.
A total of 3,237 homes were sold in March, up 19.5 percent from February and up nearly 6 percent from a year ago. Big percentage bumps are natural from February to March throughout Southern California, historical records show, but it appears this is the best March San Diego County has seen in six years, when a total of 4,367 homes were sold.
Related: San Diego housing inventory dips
Improvement aside, sales are still far below from pre-recession levels. The current housing cycle's peak was 6,926 transactions in June 2004.
"The year is young and lots could still change," said DataQuick John Walsh in the company's latest Southern California report. "But the results from the first big sales month of 2012 suggest the market is stuck in low gear. This remains a very gradual – not to mention fragile – recovery."
Sales saw the most oomph in the markets of single-family resales and new properties, in which tallies increased almost 10 percent and 27 percent, respectively, from a year ago. However, both submarkets saw their values in March fall from a year ago. Prices for single-family resales dropped 4.2 percent to $350,000, and almost 26 percent to $392,000 in the new-home market.
Can the county keep the sales surge alive this spring?
Clemente Casillas, a real estate broker in the South Bay, said it's too early to tell and that March's surge could be a fluke. Still, historically low mortgage rates and lower-than-normal prices in certain areas could push potential buyers off the fence, he added.
"I have a listing that hadn't gotten a call in a while," said Casillas, referring to a College Area home being offered in the $200,000 range. "(Now,) I've gotten two or three offers ... The price came down."
The median price for total sales bumped up 5.1 percent from February to $320,500, but fell 1.4 percent from a year ago. Prices fared the best among condo resales: The median price last month was $220,000, up almost 14 percent from February and up 6.3 percent from a year ago. Again, despite the improvement from a year ago, condo prices in the county are still far below their peak of $400,000 in March 2006.
The consumer demand for Southern California homes in the different price ranges continues to look disparate. Sales of homes below $300,000 increased more than 2 percent from a year ago, and sales exceeding $800,000 dipped 5.6 percent during the same time frame.
Thanks to Lily Leung for writing this piece.
Wednesday, April 18, 2012
Monday, January 30, 2012
Condo Buyers Frustrated in Hunt for FHA Mortgages
CHICAGO (Source: By Mary Ellen Podmolik Chicago Tribune) — Buying a condominium is getting trickier for anyone who wants to put down only 3.5 percent and have the government insure their mortgage.
The issue isn’t just the borrower’s financial wherewithal. It’s the building’s, and plenty of condos no longer get a thumbs-up from the Federal Housing Administration.
Since Feb. 1, 2010, condo buyers haven’t been able to secure unit-by-unit “spot” approval for FHA-backed mortgages if an entire building was not certified. Instead, the federal government set criteria to determine the financial viability of an entire building before deeming the project as FHA-approved, even if it had previously been certified. An approval lasts two years.
The number of rejected buildings is adding up, due to bad paperwork and bad balance sheets as an increasing number of condo associations struggle with rentals, short sales and foreclosures. It is jeopardizing the plans of condo sellers who rely on the FHA’s stamp of approval as a marketing tool and condo buyers who either want or need an FHA-approved building.
The effects of those rejected buildings are likely to linger, particularly if more stringent down payment requirements take effect for homebuyers, and could hamper any recovery of the housing market.
For the first nine months of 2011, the FHA’s share of the overall home purchase market was 37.4 percent nationally, but the share for condos would have been higher because FHA-insured loans are popular with condo purchasers, said Guy Cecala, CEO and publisher of Inside Mortgage Finance. “They have the most-used program out there,” he said.
Since Oct. 1, 38 percent of condominium communities that have gone through the certification process have been rejected by the FHA.
“It’s a critical year for buildings,” said David Hartwell, a Chicago attorney who represents condo and homeowner associations. “This is a whole new world that we live in now. I see more rejections than acceptances, and the reasons I see clients rejected aren’t quickly curable.”
For buyers like Kristy Fender, of Chicago, FHA certification is a must-have on her list, and not just because it lets Fender and her fiance, Dan Harvey, make a smaller down payment on a home purchase. She also figures that in approving buildings the FHA is doing the due diligence that she would otherwise have to do.
But the process has been much more complicated than Fender imagined, and she’s wasted a fair amount of her time. During the past few months that she’s looked at units in Chicago’s South Loop, she’s incorrectly been told that a unit can get spot approval and has looked at units that were listed as FHA approved, only to find out the certification had expired. Her real estate agent, Bette Bleeker of Prudential Rubloff, wound up routinely checking property listings against the FHA’s website of approved buildings.
“It’s been very frustrating,” Fender said. “There’s a lot of wishy-washy information out there.”
Fender and Harvey now plan to make an offer on a South Loop condo, but the offer will be contingent on the association getting the building certified for FHA financing. Bleeker has spoken with the building’s management company.
“If sellers were aware of it, they would certainly be more proactive with their management companies and not let their certification lapse,” Bleeker said. “There’s a whole education curve that needs to be done here, at the buyer level and the seller level.”
Many times, particularly in smaller buildings, it is a real estate agent or lender that informs an association that its certification has expired.
In addition to not knowing about the process, a lack of knowledge of the rules and the many gray areas within them is compounding issues for condo buildings. So, too, is not submitting all the required documentation. Many buildings are denied simply for missing or incomplete paperwork, which has led to the creation of a cottage industry of companies and attorneys that help shepherd associations through the process.
“It seems like there’s always something additional that (the FHA) wants,” said Steve Stenger, president of Condo Approval Professionals LLC. “Once it expires, FHA lending stops. Lenders can’t get case numbers; the FHA won’t insure them. That whole section of financing dries up.”
(EDITORS: BEGIN OPTIONAL TRIM)
Among the specifics that the FHA looks at is that a building is 50 percent owner occupied, that no more than 10 percent of units are owned by one investor or entity, that no more than 15 percent of the units are 30 days past due on their monthly assessments, and that at least 10 percent of the association budget be set aside for capital expenditures and deferred maintenance. But some of those rules also come with a little wiggle room.
The FHA also looks at special assessments and pending litigation, two areas that can raise red flags.
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“It’s really not that onerous,” said an FHA spokeswoman. “A lot of it is just basic information. We do have some that have been appropriately rejected because they are unstable.”
Financially, the 249-unit condo building at 1620 S. Michigan Ave. in Chicago is stable, said condo board President Jeanette Johnson. Nevertheless, she worries that the building won’t pass the test when its certification expires next month because of the high number of renters residing in units.
“I’m anticipating that the board will try to do the recertification, but I don’t know if we’ll qualify,” she said. “We’ll need to evaluate that before we spend any money. It’s definitely on the radar screen.”
If the building doesn’t qualify, Johnson said, it’s likely the board would look to change its declarations and bylaws, itself a difficult and lengthy process, to gradually reduce the number of renters allowed in the building.
The Community Association Institute believes the FHA’s requirements are having a “chilling” effect on the market, and the trade group has asked for flexibility in the guidelines.
“When it comes to the condo market, that is the gateway to affordable housing, and FHA should play a critical role in that,” said Andrew Fortin, a vice president at the trade group.
(END OPTIONAL TRIM)
The FHA hopes to publish its condo certification rules in the Federal Register this year for public comment. Among the areas that may be open to additional flexibility is the requirement that no single entity can own more than 10 percent of a building’s units, a spokeswoman said.
But in the meantime, associations continue to grapple with the rules.
“There are new, more onerous guidelines to comply with, and there are definitely challenges,” said Jason Will, national condominium sales manager for Wells Fargo Home Mortgage. “The smaller or self-managed homeowners association might not be aware of the guidelines changes until they have a buyer. You actually have a real transaction in jeopardy.”
(EDITORS: STORY CAN END HERE)
Some associations are deciding that the effort and the expenses tied to the application process, which can run into the thousands of dollars, aren’t worth the payoff and are letting their certifications lapse. In some instances, that position reflects a bias against what are thought to be lower-caliber buyers who need the FHA’s backing.
“It’s the owners that are trying to sell their units versus the owners that want to live in their units,” said Jonathan Bierman, a property manager at Forth Group, a condo association management company.
Many in the housing industry say that position is short-sighted, given consumer demand for FHA-backed mortgages.
“In an economy where it’s difficult to sell your condo, (FHA approval) is almost imperative,” said Kerry Bartell, a Buffalo Grove, Ill., attorney who represents homeowners associations. But, she noted, “We have a lot of clients that say they want to do FHA certification, and we say, ‘Don’t spend the money, because you’re not going to make it.’ ”
___
©2012 the Chicago Tribune
Source: By Mary Ellen Podmolik Chicago Tribune
Tags:Condo Buyers, financial markets, Mortgage Market, real estate news,san diego real estate,short sales
The issue isn’t just the borrower’s financial wherewithal. It’s the building’s, and plenty of condos no longer get a thumbs-up from the Federal Housing Administration.
Since Feb. 1, 2010, condo buyers haven’t been able to secure unit-by-unit “spot” approval for FHA-backed mortgages if an entire building was not certified. Instead, the federal government set criteria to determine the financial viability of an entire building before deeming the project as FHA-approved, even if it had previously been certified. An approval lasts two years.
The number of rejected buildings is adding up, due to bad paperwork and bad balance sheets as an increasing number of condo associations struggle with rentals, short sales and foreclosures. It is jeopardizing the plans of condo sellers who rely on the FHA’s stamp of approval as a marketing tool and condo buyers who either want or need an FHA-approved building.
The effects of those rejected buildings are likely to linger, particularly if more stringent down payment requirements take effect for homebuyers, and could hamper any recovery of the housing market.
For the first nine months of 2011, the FHA’s share of the overall home purchase market was 37.4 percent nationally, but the share for condos would have been higher because FHA-insured loans are popular with condo purchasers, said Guy Cecala, CEO and publisher of Inside Mortgage Finance. “They have the most-used program out there,” he said.
Since Oct. 1, 38 percent of condominium communities that have gone through the certification process have been rejected by the FHA.
“It’s a critical year for buildings,” said David Hartwell, a Chicago attorney who represents condo and homeowner associations. “This is a whole new world that we live in now. I see more rejections than acceptances, and the reasons I see clients rejected aren’t quickly curable.”
For buyers like Kristy Fender, of Chicago, FHA certification is a must-have on her list, and not just because it lets Fender and her fiance, Dan Harvey, make a smaller down payment on a home purchase. She also figures that in approving buildings the FHA is doing the due diligence that she would otherwise have to do.
But the process has been much more complicated than Fender imagined, and she’s wasted a fair amount of her time. During the past few months that she’s looked at units in Chicago’s South Loop, she’s incorrectly been told that a unit can get spot approval and has looked at units that were listed as FHA approved, only to find out the certification had expired. Her real estate agent, Bette Bleeker of Prudential Rubloff, wound up routinely checking property listings against the FHA’s website of approved buildings.
“It’s been very frustrating,” Fender said. “There’s a lot of wishy-washy information out there.”
Fender and Harvey now plan to make an offer on a South Loop condo, but the offer will be contingent on the association getting the building certified for FHA financing. Bleeker has spoken with the building’s management company.
“If sellers were aware of it, they would certainly be more proactive with their management companies and not let their certification lapse,” Bleeker said. “There’s a whole education curve that needs to be done here, at the buyer level and the seller level.”
Many times, particularly in smaller buildings, it is a real estate agent or lender that informs an association that its certification has expired.
In addition to not knowing about the process, a lack of knowledge of the rules and the many gray areas within them is compounding issues for condo buildings. So, too, is not submitting all the required documentation. Many buildings are denied simply for missing or incomplete paperwork, which has led to the creation of a cottage industry of companies and attorneys that help shepherd associations through the process.
“It seems like there’s always something additional that (the FHA) wants,” said Steve Stenger, president of Condo Approval Professionals LLC. “Once it expires, FHA lending stops. Lenders can’t get case numbers; the FHA won’t insure them. That whole section of financing dries up.”
(EDITORS: BEGIN OPTIONAL TRIM)
Among the specifics that the FHA looks at is that a building is 50 percent owner occupied, that no more than 10 percent of units are owned by one investor or entity, that no more than 15 percent of the units are 30 days past due on their monthly assessments, and that at least 10 percent of the association budget be set aside for capital expenditures and deferred maintenance. But some of those rules also come with a little wiggle room.
The FHA also looks at special assessments and pending litigation, two areas that can raise red flags.
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Please go to the plugin admin page to paste your ad code.
“It’s really not that onerous,” said an FHA spokeswoman. “A lot of it is just basic information. We do have some that have been appropriately rejected because they are unstable.”
Financially, the 249-unit condo building at 1620 S. Michigan Ave. in Chicago is stable, said condo board President Jeanette Johnson. Nevertheless, she worries that the building won’t pass the test when its certification expires next month because of the high number of renters residing in units.
“I’m anticipating that the board will try to do the recertification, but I don’t know if we’ll qualify,” she said. “We’ll need to evaluate that before we spend any money. It’s definitely on the radar screen.”
If the building doesn’t qualify, Johnson said, it’s likely the board would look to change its declarations and bylaws, itself a difficult and lengthy process, to gradually reduce the number of renters allowed in the building.
The Community Association Institute believes the FHA’s requirements are having a “chilling” effect on the market, and the trade group has asked for flexibility in the guidelines.
“When it comes to the condo market, that is the gateway to affordable housing, and FHA should play a critical role in that,” said Andrew Fortin, a vice president at the trade group.
(END OPTIONAL TRIM)
The FHA hopes to publish its condo certification rules in the Federal Register this year for public comment. Among the areas that may be open to additional flexibility is the requirement that no single entity can own more than 10 percent of a building’s units, a spokeswoman said.
But in the meantime, associations continue to grapple with the rules.
“There are new, more onerous guidelines to comply with, and there are definitely challenges,” said Jason Will, national condominium sales manager for Wells Fargo Home Mortgage. “The smaller or self-managed homeowners association might not be aware of the guidelines changes until they have a buyer. You actually have a real transaction in jeopardy.”
(EDITORS: STORY CAN END HERE)
Some associations are deciding that the effort and the expenses tied to the application process, which can run into the thousands of dollars, aren’t worth the payoff and are letting their certifications lapse. In some instances, that position reflects a bias against what are thought to be lower-caliber buyers who need the FHA’s backing.
“It’s the owners that are trying to sell their units versus the owners that want to live in their units,” said Jonathan Bierman, a property manager at Forth Group, a condo association management company.
Many in the housing industry say that position is short-sighted, given consumer demand for FHA-backed mortgages.
“In an economy where it’s difficult to sell your condo, (FHA approval) is almost imperative,” said Kerry Bartell, a Buffalo Grove, Ill., attorney who represents homeowners associations. But, she noted, “We have a lot of clients that say they want to do FHA certification, and we say, ‘Don’t spend the money, because you’re not going to make it.’ ”
___
©2012 the Chicago Tribune
Source: By Mary Ellen Podmolik Chicago Tribune
Tags:Condo Buyers, financial markets, Mortgage Market, real estate news,san diego real estate,short sales
Tuesday, January 10, 2012
New VA Loan Guidelines!
It is estimated that less than 50% of veterans take advantage of their VA benefit to purchase a home, studies show the main reason they do not is because they are unaware of the excellent purchase benefits they are entitled too. With over 2.3 million veterans now living in California alone, and with a large percentage of these based in San Diego, working with VA buyers presents a tremendous opportunity to help you grow your business and to also help our veterans purchase a home. VA purchases do have some different rules to follow when compared to regular purchases, so here are some tips to help you close more VA transactions.
San Diego 2012 VA loan limits drop from $537k to $477k
The VA just released their loan limits for 2012. Unfortunately for San Diego the VA lowered our 2011 VA loan limit from $537k down to $477k. This means that 100% VA financing is now only available to $477k for buyers in San Diego, whereas in 2011 this was available to $537k. You can check here for the new 2012 VA loan limits for your county. *For a purchase price over $477k, there is a special formula the VA uses to calculate what a VA buyers down payment requirement is. Feel free to contact me if you have a VA scenario and you want to calculate what a buyers new down payment requirement is.
Here are the most frequently asked questions in regards to VA purchases.
1. Who is eligible for VA financing?
A veteran is eligible for VA financing if he/she served on active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard and was honorably discharged after 24 continuous months of active duty, or the full period for which called, or ordered to active duty, but not less than 90 days (during wartime) or 181 continuous days (during peacetime).
2. VA buyers can purchase with $0 down payment?
As mentioned above, VA buyers can get 100% financing here in San Diego to $477k? VA financing is still the only loan program that allows 100% financing in any area (FYI the USDA allows 100% financing, but this is strictly for rural properties). As the FHA still requires a 3.5% down payment and most conventional loan programs still require anywhere from 3% to 20% down payments depending on the credit profile of the buyer, this is still putting home ownership out of reach for many buyers.
3. Easier qualification rules for VA buyers
Most banks have easier qualifying and credit guidelines for VA buyers. Because many first time buyers typically don’t have a lot of established credit, getting qualified for a conventional loan can be more difficult. Most VA lenders only need a 620 credit score to offer 100% VA financing. Also some VA lenders allow a buyer to qualify up to a 60% debt to income (DTI) ratio on VA loans, Fannie Mae is now capped at 50% and 45% in some cases.
4. VA buyers pay no monthly Mortgage Insurance
Another huge advantage for VA buyers is that they do not have to pay any monthly mortgage insurance (MI) on their loans, as these are backed by the government. Remember all FHA loans require mortgage insurance. So having no monthly mortgage insurance allows VA buyers to either purchase a bigger home or have have a lower monthly mortgage payment.
3 Tips to ensure VA purchase offers get accepted
There is a misconception out there that sellers discriminate against buyers using VA financing because of the following three reasons: 1. The low down payment requirement means less skin in the game. 2. The (misguided) perception that the seller must pay for some or all of the buyer's closing costs. 3. The (false) belief that VA appraisers are less generous in their appraisals. Here are 3 tips to debunk seller held credit myths about VA financing, so you can ensure your purchase offers will get accepted.
1. The zero down payment requirement means less skin in the game
We can't argue with this because VA does allow 100% financing, so this does amount to very "little skin in the game". But here is what you can do to strengthen the VA buyers profile, show the seller that the borrower has a DU approved loan (automated VA underwriting approval) and also include asset documentation (proof of reserves etc) to support that approval. This will assuage the fears a seller might have about a buyer (and that buyer's lender) performing with their financing.
2. The (misguided) perception that the seller must pay for some or all of the buyer's closing costs.
On VA transactions, the seller is NOT required to pay ANY costs for the buyer, but is allowed to pay up to 4% towards a VA buyers costs. There are certain "VA non-allowable" costs for which a VA buyer is forbidden to pay, (for example No escrow fees, wiring, notary, tax service or processing fees are allowed to be charged).
So here is a good tip to help get a VA offer accepted, so this issue of who covers these VA non allowable fees does not become an issue when negotiating a purchase price. It is advised that the following language be inserted in to the purchase contract so the seller is not put off by the VA offer: “Seller not responsible for any buyer closing costs, regardless of the selected loan program. All agency-related "non-allowable" costs to be borne by lender”.
3. The (false) belief that VA appraisers are less generous in their valuations.
There is a common misconception that VA appraisals usually come in lower. While I am sure that a lot of people have had a VA appraisal come in lower, I am sure they can say the same about FHA and conventional financing too. Underwriters and appraisers will point out, as long as the property is properly priced and the offer is reasonable, the VA appraisal should go smoothly. We have done on average 2-3 VA transactions a month for the past few years and I have only seen a value come in lower in maybe 10-15% of these VA transactions, which is similar for other forms of financing too.
VA Appraisal TIP. One of the most common appraisal value "hits' I have seen is when the purchase price is increased, above listing price, to accommodate for the seller-paid contribution. Be wary of that when submitting/accepting offers and have a back-up plan. If the appraisal does come in low make sure the buyer has additional reserves to potentially come in with more cash to close, because Remember the lender will only approve financing to 100% of the appraised value.
A great marketing opportunity, support our troops!
Because of the large number of veterans that are living in California, this represents a tremendous opportunity to work with VA buyers. My wives dad is ex military and her brother is currently in the Navy, so I especially enjoy working with VA buyers. I have always found that VA buyers are a pleasure to work with because they are very loyal and they communicate very well too, and it also feels good to know you are giving back a little to our armed forces by helping them obtain home ownership, as they sacrifice so much for all of us on a daily basis.
If you have any questions in regards to VA purchases please feel free to contact me directly at 619-325-4111. My lender is approved directly with the VA, so we are able to offer all the best programs that are available to our military friends. I look forward to chatting soon.
San Diego 2012 VA loan limits drop from $537k to $477k
The VA just released their loan limits for 2012. Unfortunately for San Diego the VA lowered our 2011 VA loan limit from $537k down to $477k. This means that 100% VA financing is now only available to $477k for buyers in San Diego, whereas in 2011 this was available to $537k. You can check here for the new 2012 VA loan limits for your county. *For a purchase price over $477k, there is a special formula the VA uses to calculate what a VA buyers down payment requirement is. Feel free to contact me if you have a VA scenario and you want to calculate what a buyers new down payment requirement is.
Here are the most frequently asked questions in regards to VA purchases.
1. Who is eligible for VA financing?
A veteran is eligible for VA financing if he/she served on active duty in the Army, Navy, Air Force, Marine Corps, or Coast Guard and was honorably discharged after 24 continuous months of active duty, or the full period for which called, or ordered to active duty, but not less than 90 days (during wartime) or 181 continuous days (during peacetime).
2. VA buyers can purchase with $0 down payment?
As mentioned above, VA buyers can get 100% financing here in San Diego to $477k? VA financing is still the only loan program that allows 100% financing in any area (FYI the USDA allows 100% financing, but this is strictly for rural properties). As the FHA still requires a 3.5% down payment and most conventional loan programs still require anywhere from 3% to 20% down payments depending on the credit profile of the buyer, this is still putting home ownership out of reach for many buyers.
3. Easier qualification rules for VA buyers
Most banks have easier qualifying and credit guidelines for VA buyers. Because many first time buyers typically don’t have a lot of established credit, getting qualified for a conventional loan can be more difficult. Most VA lenders only need a 620 credit score to offer 100% VA financing. Also some VA lenders allow a buyer to qualify up to a 60% debt to income (DTI) ratio on VA loans, Fannie Mae is now capped at 50% and 45% in some cases.
4. VA buyers pay no monthly Mortgage Insurance
Another huge advantage for VA buyers is that they do not have to pay any monthly mortgage insurance (MI) on their loans, as these are backed by the government. Remember all FHA loans require mortgage insurance. So having no monthly mortgage insurance allows VA buyers to either purchase a bigger home or have have a lower monthly mortgage payment.
3 Tips to ensure VA purchase offers get accepted
There is a misconception out there that sellers discriminate against buyers using VA financing because of the following three reasons: 1. The low down payment requirement means less skin in the game. 2. The (misguided) perception that the seller must pay for some or all of the buyer's closing costs. 3. The (false) belief that VA appraisers are less generous in their appraisals. Here are 3 tips to debunk seller held credit myths about VA financing, so you can ensure your purchase offers will get accepted.
1. The zero down payment requirement means less skin in the game
We can't argue with this because VA does allow 100% financing, so this does amount to very "little skin in the game". But here is what you can do to strengthen the VA buyers profile, show the seller that the borrower has a DU approved loan (automated VA underwriting approval) and also include asset documentation (proof of reserves etc) to support that approval. This will assuage the fears a seller might have about a buyer (and that buyer's lender) performing with their financing.
2. The (misguided) perception that the seller must pay for some or all of the buyer's closing costs.
On VA transactions, the seller is NOT required to pay ANY costs for the buyer, but is allowed to pay up to 4% towards a VA buyers costs. There are certain "VA non-allowable" costs for which a VA buyer is forbidden to pay, (for example No escrow fees, wiring, notary, tax service or processing fees are allowed to be charged).
So here is a good tip to help get a VA offer accepted, so this issue of who covers these VA non allowable fees does not become an issue when negotiating a purchase price. It is advised that the following language be inserted in to the purchase contract so the seller is not put off by the VA offer: “Seller not responsible for any buyer closing costs, regardless of the selected loan program. All agency-related "non-allowable" costs to be borne by lender”.
3. The (false) belief that VA appraisers are less generous in their valuations.
There is a common misconception that VA appraisals usually come in lower. While I am sure that a lot of people have had a VA appraisal come in lower, I am sure they can say the same about FHA and conventional financing too. Underwriters and appraisers will point out, as long as the property is properly priced and the offer is reasonable, the VA appraisal should go smoothly. We have done on average 2-3 VA transactions a month for the past few years and I have only seen a value come in lower in maybe 10-15% of these VA transactions, which is similar for other forms of financing too.
VA Appraisal TIP. One of the most common appraisal value "hits' I have seen is when the purchase price is increased, above listing price, to accommodate for the seller-paid contribution. Be wary of that when submitting/accepting offers and have a back-up plan. If the appraisal does come in low make sure the buyer has additional reserves to potentially come in with more cash to close, because Remember the lender will only approve financing to 100% of the appraised value.
A great marketing opportunity, support our troops!
Because of the large number of veterans that are living in California, this represents a tremendous opportunity to work with VA buyers. My wives dad is ex military and her brother is currently in the Navy, so I especially enjoy working with VA buyers. I have always found that VA buyers are a pleasure to work with because they are very loyal and they communicate very well too, and it also feels good to know you are giving back a little to our armed forces by helping them obtain home ownership, as they sacrifice so much for all of us on a daily basis.
If you have any questions in regards to VA purchases please feel free to contact me directly at 619-325-4111. My lender is approved directly with the VA, so we are able to offer all the best programs that are available to our military friends. I look forward to chatting soon.
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