VA repos - Posted by Brent

Posted by Mark (SDCA) on April 03, 2000 at 10:48:10:

The financing is NOT assumable. Still, it’s pretty good financing. Owner occupied rates, fixed financing for 30 years. I believe its 2.5 points. The prices are normally pretty close to FMV. Good financing but no smoking deals here.


VA repos - Posted by Brent

Posted by Brent on April 03, 2000 at 09:54:07:

I was looking through the VA home page and found some houses for sale with little money down. The particular one I am looking at is a 3/2 in a nice area of town selling for 89000 with 1780 down. The house has had its carpeting ripped up and doesnt have a refrigerator. The house next door is for sale for 129000. Has anyone ever bought though the va and are they assumable loans because it says financing available through vendee and the va will pay up to 6% commission for realtors. I think this is a good deal but dont know, could someone who has worked with the va or someone with experience let me know what to expect

Re: VA repos - Posted by T Jent

Posted by T Jent on April 03, 2000 at 23:48:29:

I’ve bought two VA homes and it turned out to be a good experience. One was a fixer duplex that looked like hell but wasn’t really too bad. The other was a “3/2 in a nice neighborhood” that was a little run down looking on the outside, because vacant for so long, but not even a true fixer really. I got the duplex for 5% down, and the house for 0% down. The VA loan qualification process was breezy compared to other conventional loans I’ve got (They’re apparently very motivated to lend people money…government). The properties were definitely below market and I resold them for a good profit without too much rehab.

CAVEAT: Like HUDS, a lot of VA repos are real clunkers; and like all REOs, they’re not necessarily good bargains. Be discriminating. One thing I’ve noticed with both HUD and VAs is that they may give you an “appraisal” of the property (“Appraised value, $130,000”). These appraisals are worse than worthless. I believe (though this is a guess) that they are mere “electronic appraisals” based upon a quick MLS check of properties with similar statistical features (number of beds/baths, square footage, ect.) in the same area without a real physical inspection of the property. In my experience, these appraisals cannot be trusted at all, especially since so many of the properties are in poor condition.

Good Luck!