Sarasota Real Estate Market News

VA loans make many foreclosed homes off-limits

WASHINGTON – July 21, 2011 – The Department of Veterans Affairs provides home loans to veterans that helps them buy a house for very little money down, if any at all.

However, some of the VA requirements, which were created to protect buyers, actually hamstring them when it comes to purchasing a distressed property. Despite the high number of foreclosed houses, many sellers are reluctant to accept offers from those using VA loans because of their strict requirements – including that a dwelling be in shipshape condition.

The VA said it implemented the criteria to protect veterans from sinking money into a rundown house that they might not be able to afford later.

Bill White, assistant director of loan policy for the Veteran’s Benefits Administration, did acknowledge that it is possible the agency is “protecting somebody out of a home.” However, he also said the VA has no intention of changing its requirements.

Source: NPR Online (07/14/11) Noguchi, Yuki

July 29, 2011 - Posted by | News related to Buyers, News related to Financing

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