Posted by Troy on November 18, 1998 at 09:06:39:
John,
In my area VA repos are handled by an agent who related the following: VA will accept as low as 90% of their ask price, but that’s 90% in their pocket. Hence, the realtor’s commission of 6% is above, so they’re only discounting to 96% of asking price. They will lower their asking price by approx. 10% after a couple of months with no acceptable offers. Your closing costs are mostly prepaids-taxes, insurance. Hope this helps,
Troy
VA homes, negotiatible? - Posted by John (KS)
Posted by John (KS) on November 18, 1998 at 08:28:35:
I think I spelled negotiatible wrong, oh well. I found the home I was looking at (earlier post) on the internet. It is listed at $61,000 with a $3,050 downpayment req’d. Is there any flexibility to these numbers, is it possible to make a lower offer? Any chance for creative financing, I assume I could get a VA loan. Who pays the closing costs on a VA home? Is it possible to make an offer, have it accepted, then flip it, by assigning my offer to another? I am just getting into this SFH stuff. Mobile homes are much easier. Thanks.
Re: VA homes, negotiatible? - Posted by Dave T
Posted by Dave T on November 19, 1998 at 21:23:58:
I bought a VA repo this past June. VA lists their homes at or near FMV and seems to have a minimum about 11-12% below their list. I got mine with a bid 9% below list.
If you are the winning bidder, you may elect to use VA vendee financing. This is a VA loan at the VA rate and 100% financing. You pay a 2.25% funding fee and normal closing costs – probably where the $3050 figure came from. You do not have to be a veteran to get VA financing for their repos, and there is no limit to the number of VA repos you can buy. You just have to be able to qualify for each one…
Re: VA homes, negotiatible? - Posted by Irwin
Posted by Irwin on November 19, 1998 at 06:51:31:
Buying a VA repo doesn’t make you eligible for a VA insured mortgage. You must be a veteran for that; however, VA repos are sold on contract with very favorable financing rates, so you don’t need the mortgage. Flipping VAs? Your purchase offer is not assignable. You’d have to close first and then assign the contract. Not sure if this is permitted in a short time by VA regs, but, in any event, you won’t have enough equity to do it, so it’s academic.