Selling to VA buyer with financing

[StateOfMyHead]

Any recent experiences dealing with VA loan as a seller? My property is getting multiple contracts so I’m trying to weigh the pros and cons. I don’t need advice about whether to even look at the full price offer from sight unseen buyer with inspection contingency lol. These are strange times in real estate.

[Kamban]

If I get the same offer as a cash offer with minimal or no contingency I would take that first. Any government loan would have unnecessary hassles, after seeing what we have gone through trying to get SBA loans.

Any reason why you want that over others?

[Ozarka]

I can't speak to VA loans but I've sold a house before to buyers with a FHA loan....and it was a pain in the rear! I wouldn't be surprised if it was similar given the government's involvement in both loans.

I will say though that the house I was selling was one built in the 40's and FHA loans have certain property condition requirements like can't have chipped paint, must have egress windows, and certain other requirements - some seeming rather ridiculous and not an issue with a conventional loan. Could've been dealing with an FHA loan, or an old house, or a combination of the 2, but if I had a similar offer with a conventional loan then I would've jumped on that one.

[StateOfMyHead]

Thank you. I was thinking the same thing about govt loans and no preference except for the highest net with shortest time to close.

[StateOfMyHead]

Welp thought I'd add an update. It had 5 showings in 3 days and got two offers. VA offer was full price, attempting to contract as sight unseen but with inspection contingency which I would have amended anyway. Second offer which I have accepted is 98% of asking price, cash with inspection waived. I'm crossing my fingers that all goes as planned. It almost seems too easy. Thank you all for your responses.

[Ozarka]

Cash offer at 98% of asking with inspection waived?! I would've jumped on that one as well, assuming that 2% isn't a huge chunk being left on the table. Is it customary to get proof of funds on cash offers? Anyways, congrats and hope it's smooth sailing!

[Hank]

I might bump the required earnest money up to 5-10% of the would-be-buyer's offered price instead of the de minimus $10K that somehow has become customary.* Otherwise, as much as it hurts me to see incentives to discriminate against military / veteran home buyers, from the seller's perspective it makes perfect sense to take the 98%, all cash, no inspection offer.


*How on earth did $10K earnest money become a fixed, standard thing on both $300K houses and $3 million houses, yet 6% commission stays constant from $100K up to multi-million dollar houses?

[StateOfMyHead]

Cash offer at 98% of asking with inspection waived?! I would've jumped on that one as well, assuming that 2% isn't a huge chunk being left on the table. Is it customary to get proof of funds on cash offers? Anyways, congrats and hope it's smooth sailing!

I haven’t experienced this before but I would imagine it is customary to have verified funds. In this instance there are also two realtors involved who have an interest in the deal closing.

[StateOfMyHead]

Otherwise, as much as it hurts me to see incentives to discriminate against military / veteran home buyers, from the seller's perspective it makes perfect sense to take the 98%, all cash, no inspection offer

I’m still not certain if VA loans are difficult but if they are that would be something VA should consider because as much as I would love to support our service members I’m not interested in taking a significant hit to do it.

There wasn’t any question when the cash deal with no contingencies came through although what actually soured me on the VA buyer, who only lives an hour away, is that they were trying to put contract in sight unseen with an inspection clause. While I can’t speak for this particular case I know someone who did this on multiple properties last year with the plan to scrap the deal during the inspection process if they didn’t like the house when they saw it which is a game I have no interest playing.

[Kamban]

who only lives an hour away, is that they were trying to put contract in sight unseen with an inspection clause. While I can’t speak for this particular case I know someone who did this on multiple properties last year with the plan to scrap the deal during the inspection process if they didn’t like the house when they saw it which is a game I have no interest playing.

One hour and does not have time to drive over to at least see the house but has time to put in a contract ??!!.

If it were me, I would have discarded it in trash since I can gleam how serious that buyer was.

[Hank]

One hour and does not have time to drive over to at least see the house but has time to put in a contract ??!!.

If it were me, I would have discarded it in trash since I can gleam how serious that buyer was.

Oh my, that doesn’t sound like a serious buyer at all.