More about VA Loans for the Military
One thing I’m asked quite frequently is “how do people feel about accepting a Va offer locally?”
Well let me start with we have 7 military bases within an hour of one another. The likelihood that they will receive a VA offer is VERY high.
Even still some of y’all will say. My friends told me "VA Appraisals take too long, they never come in at value and the appraiser will pick the home apart" so no one will accept my offer as a veteran using the VA loan.
I HEAR your opinions and what you’ve been told.
However let me flip that script.
Let’s not go with hear say let’s go to the facts: Below is data from John Bell (executive director of Loan Guaranty) & Myron Head (Chief Valuation Officer) from yesterdays VA lender conference.
2022:
- VA appraisals came back at or above value 92% of the time vs conventional appraisals came in at or above value 80% of the time.
- VA has TWO methods to get value back Tidewater & Reconsideration of value (ROV)
-The ROV process is reporting a 79% approval rating equating to an average increase in value of over $28,000!
- The Appraisal report is owned by the Veteran. If the transaction falls apart, the Appraisal is NOT attached to the property. It goes with the Veteran
- It's NOT a "VA Appraisal Problem" ITS AN APPRAISAL PROBLEM. PERIOD. The lender takes all the risk.
- The VA is only financing program with strict timeline requirements. It varies state by state, Virginia requires VA approved appraisers to have completed and uploaded the completed report with 10 days. The national average is 7.2. Days. 3 days faster than conventional appraisals.
In summary:
Accepting a VA offer the likelihood of the appraisal coming in at or above value= 92%. If value cannot be established, Tidewater is evoked (it’s then MY job to send supporting comparable homes to appraiser). If value is still low, submitting to ROV shows an approval rate of 79% and over 28k. If transaction falls apart, the Appraisal goes with the Veteran. It does NOT stay with the property. (This is NEW it used to stay with the property)
The VA has been recognized for their Tidewater and ROV process and have set the bar!
The Office of Comp Contoller of the Currency (OCC) and the Government Sponsored Enterprises (GSEs) are looking at how to implement the VAs Tidewater and ROV processes in the conventional space.
Do you think a uniformed appraisal process will level the playing field for Veteran Homeownership? You bet it will!
This ain't your grand dad's VA Home Loan Program, or even the same from 10 years ago. It's NOT an inferior product. In fact, The VA Home Loan Program has become superior IN SPITE of all the myths, misconceptions and untruths that are spread.
IM HERE TO BE THE CHANGE.
I want YOU to be empowered at the highest level, that’s what this page is for, I will educate you on on purchasing a home to the BEST of my ability.
The more you know the better I have served this community and the better chance you have at beginning to build equity and purchasing a home!
Interested in learning more? Let’s chat! I’m never too busy to help.
