What are the VA home buying qualifications?

[happyscooter]

Someone made an offer on my mom's house. They are trying to get VA approved. What would be the qualifications for that? Can the house be a fixer? Because it is. And we aren't doing anything to it. It is listed under the tax value and they offered less than that. We agreed, but I am wondering if the VA is going to say 'fix this, this and this.' And we will say 'no'. It is still on the market, the RE knows to keep showing it as we want to get this over with.

[happyscooter]

Sorry, that last part seems kind of hard hearted now that I read it.

[alabamagal]

I personally don't see anything wrong with selling a house that has "problems" as long as they are disclosed. I assume that is why it is under the tax value. It is called a fixer-upper. If the buyer can't get financing, that is their problem and just put back on the market. A seller shouldn't be required to fix things just to sell, that is their decision. In many cases fixing it up is a good investment, but it still should be sellers decision.

I don't think that is hard hearted.

[973beachbum]

I think they have the same rules as HUD does. So yes they require that the house be livable when purchased. They will approve the mortgage but put stipulations on it for things that have to be fixed first or they won't release the money for purchase.

I do know some people who purchased using a VA loan on a fixer upper and they did the work them self. It was kind of wink wink nod nod between the seller and the buyer. The VA said they had to fix the siding or something. So my friends bought the T1-11 and went over to the house they were buying and put it on. No one ever asked who paid for the supplies or who did it.

It was asked and agreed upon by both parties though.

[happyscooter]

OK. The roof is fairly new, there is A/C and heat, electricity, almost new storm windows, and water. I know years ago FHA required the roof could not be over a certain age and the septic tank/well system had to be a certain age. So I wasn't sure about a VA loan. As far as it being a fixer, I just meant a new toilet and sink in the bathroom and new carpet and paint. Take down paneling and fix the ceiling. It is very livable.

I guess the last part when I said I was ready for it to be over, it just sounded like I am ready to forget my parents now that they are gone and their house is for sale. I really didn't mean it like that. Not by a long shot. I wish they were both still here.

[happyscooter]

I don't think the RE agent would have written a contract knowing they were getting a VA loan if the house was uninhabitable. Or needed ALOT of work. But you never know.

Thanks for your comments and help. Again.

[raeoflyte]

VA is usually more lenient than FHA, and from your description I can't imagine a problem with it. (Health and safety issues have to be fixed, but cosmetics are not required to be fixed).

[phil5185]

There was a time when sellers avoided potential VA buyers because of the hassle. I've sold to VA buyers but I wouldn't budge from my asking price - if I am going to be hassled I want to get paid for it.

[Sum Dum Gai]

We bought our house on a VA loan. We had to tear out the back deck to get it financed. They're picky as hell about any peeling paint on the exterior of the house, and the previous owners had painted the deck which had started to peel. On top of that it had some loose boards because the trusses underneath were starting to rot out. VA inspector said it wouldn't qualify unless we could tighten all the boards, sand down the peeling paint, and repaint it. The supports were so rotted out that I couldn't tighten down the deck boards so we had to rip it out instead. Pretty decent looking 12' x 40' deck with some peeling paint and one section of loose boards became a pile of scrap wood that had to be hauled to the . It was really stupid since the deck integrity had nothing to do with the actual house anyway.

[DVM gone riding]

I think truly needing repair and needing updating are very different things. sounds like you shouldn't have any trouble with the rules.

[happyscooter]

I understand they will still have an inspection. To make sure that the propane tank works or the hot water heater works. But they know that we aren't fixing anything. It's a good house. My home for 10 years. It's kind of sad. But I have my memories.

[JustLurkin]

I'm sure the regulations are stricter now , but I purchased a home 7 years ago with an FHA loan and the purchase was "as-is"; there was no inspection conducted. It was appraised, but not inspected. When I asked about an inspection, my realtor pointed out I'd agreed to purchase "as-is"...what would be the point, other than to spend more money? Yea, yea, I got lucky and still haven't had to spend that much toward the maintenance of my home, and probably wouldn't do that again even in an "as-is" sale, just telling my story.

[Deleted]

JustLurkin, you can agree to buy a house "as-is" but still make it contingent on a home inspection. What that would mean is that you wouldn't ask them to fix anything, but if there was a major problem, you could walk away.

They do this every night on HGTV so it must be legal. Lol.

[hoops902]

Mar 30, 2011 14:58:36 GMT -5 JustLurkin said:

I'm sure the regulations are stricter now , but I purchased a home 7 years ago with an FHA loan and the purchase was "as-is"; there was no inspection conducted. It was appraised, but not inspected. When I asked about an inspection, my realtor pointed out I'd agreed to purchase "as-is"...what would be the point, other than to spend more money? Yea, yea, I got lucky and still haven't had to spend that much toward the maintenance of my home, and probably wouldn't do that again even in an "as-is" sale, just telling my story.

Are you sure the person doing the appraisal didn't also do the FHA inspection? That's how it works around here. It's not the regular home inspection, it's just checking the FHA required points. They don't give you a report unless there are deficiencies.

[JustLurkin]

Mar 30, 2011 16:15:22 GMT -5 hoops902 said:

Mar 30, 2011 14:58:36 GMT -5 JustLurkin said:

I'm sure the regulations are stricter now , but I purchased a home 7 years ago with an FHA loan and the purchase was "as-is"; there was no inspection conducted. It was appraised, but not inspected. When I asked about an inspection, my realtor pointed out I'd agreed to purchase "as-is"...what would be the point, other than to spend more money? Yea, yea, I got lucky and still haven't had to spend that much toward the maintenance of my home, and probably wouldn't do that again even in an "as-is" sale, just telling my story.

Are you sure the person doing the appraisal didn't also do the FHA inspection? That's how it works around here. It's not the regular home inspection, it's just checking the FHA required points. They don't give you a report unless there are deficiencies.

Figured it was something like that, that's why I mentioned the appraisal--thanks for clarifying.

There was no contingency--there were already offers on the home, accepting it "as is" was supposed to make it more appealing than those offers. Just like on HGTV!

[raeoflyte]

Mar 30, 2011 14:58:36 GMT -5 JustLurkin said:

I'm sure the regulations are stricter now , but I purchased a home 7 years ago with an FHA loan and the purchase was "as-is"; there was no inspection conducted. It was appraised, but not inspected. When I asked about an inspection, my realtor pointed out I'd agreed to purchase "as-is"...what would be the point, other than to spend more money? Yea, yea, I got lucky and still haven't had to spend that much toward the maintenance of my home, and probably wouldn't do that again even in an "as-is" sale, just telling my story.

FHA doesn't require inspections, but I'm surprised that the agent didn't still encourage you to get one. Appraisers are certainly looking for anything that obviously doesn't meet FHA guidelines, but aren't as detailed as an inspector.

I'm glad it worked out for you though!!!

[JustLurkin]

• "VA is usually more lenient than FHA"
  
  
• "FHA doesn't require inspections"
  

Those are the points I was getting at when I commented.

I think I was about to be fired by my realtor when I *finally* found a home/neighborhood I liked and qualified for.