Fits Meade
How to Buy a Bank Owned Home With VA or FHA Secured Financing by Brett Meade
Many bank owned homes do not list VA or FHA financing as possible loan options they are willing to consider when reviewing an offer. For many home buyers, these are the only types of financing available to them. Home buyer’s looking to purchase a home with a minimal down payment, or less than perfect credit, rely on the Federal Housing Authority (FHA) or the Department of Veterans Affairs (VA) to guarantee their loans. In addition to the buyer’s credit worthiness, in order to guarantee a loan, the FHA and VA require the property to fit certain standards of livability. For the FHA, some of these requirements include, but are not limited to, adequate heating for every room, roof with at least 2 years of life remaining, electrical panel in good working order, adequate water and power service to the property, no obvious pest and dry rot problems, no major water drainage issues, and any access to the crawlspace be properly protected from rodents. The requirements for VA financing are similar, however, the VA appraiser is much more thorough with their review of the home. As a result of these property requirements many homes that are bank owned will not be eligible for a VA or FHA guaranteed loan without many upgrades. The banks would prefer to sell the home AS IS, to a buyer using conventional financing or paying in cash. This is why the banks tend to sell their homes for less than market value. Many of the homes require repairs, and the pool of buyers is less than a typical home. The bank will sell a home in a few days, for tens of thousands of dollars less than it would typically sell the same home for, in good condition, with a larger pool of buyers.
So how does a VA or FHA home buyer get the bank to review their offer when they do not list VA or FHA as an option? One option is to make the offer along with a request to fix the issues that would stop the home from being FHA or VA eligible. This requires a working knowledge of the lending requirements. A good source for this information would be the VA and FHA websites, your loan officer and your real estate agent.
Here’s one way this situation would play out: You are a VA buyer, and the house you would like to make an offer on has a major roof leak and 3 windows are broken. The banks inspection of the home revealed these issues as well and therefore VA financing was not provided as an option. After reviewing the guidelines online, consulting with your lender and real estate agent you decide to make your offer subject to; the bank repairing the roof, any damage resulting from the leak, and the 3 broken windows to be replaced with new vinyl windows. Presenting the offer to the bank in this manner addresses upfront the known issues and the solutions to the problem. The longer the home has been on the market, and the less repairs needed, the more likely this type of offer will be accepted. Banks, their listing agents, and asset managers have many resources for making most types of repairs. They would just prefer not to.
We are currently experiencing a market that has excessive inventory, stringent financing guidelines, tough competition on the best deals and a lot of uncertainty. It pays to be patient and creative. If you want to take advantage of the best bank owned deals, take time to understand your lender’s property requirements and understand that the longer the home sits, the more leverage you’ll have to get the bank to accept your offer.
About the Author
Brett Meade is a North Tacoma real estate specialist for NW Home Brokers. Lately, his focus has been on Tacoma foreclosures.
Robin Meade Morning Express Coughing Fit
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Celestron 93625 Universal 1.25-inch Camera T-Adapter $20.95 Fits (drop in style) any type of telescope that uses a 1.25″ focuser or visual back. Allows you to attach your 35mm SLR camera to the prime focus of your telescope or spotting scope. Both a T-Adapter and T-Ring are required to mount a 35mm SLR camera to your instrument…. |
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Opteka T-Mount Adapter for Canon EOS 60D, 50D, 40D, 30D, 20D, 7D, 5D, 1D, Rebel T3i, T3, T2i, T1i, XS, XSi, XTi and XT Digital SLR Cameras $13.95 An accessory ring available in Canon EOS mount which converts the lens mount of your SLR camera to a T-Mount…. |
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Fotodiox T/T2 Lens Mount Adapter for Canon EOS Mount Camera, Canon EOS 1d,1ds,Mark II, III, IV, 5D, Mark II, 7D, 10D, 20D, 30D, 40D, 50D, 60D, Digital Rebel xt, xti, xs, xsi, t1i, t2i, 300D, 350D, 400D, 450D, 500D, 550D, 1000D $7.95 If you have a SLR or DSLR camera and other maker/mount lenses, the Fotodiox Mount Adapters allow you to use your lenses on the film/digital camera body. Sharing lenses has some distinct advantages. Certain prime lens just can’t be replaced, and you save cost of purchase lenses. ¡Fotodiox offers a range of adapter from large format to smaller format digital adapters. Adapting larger format lens,… |
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Kendrick Baader Visual & Photographic Solar Filter for Meade 10 SCT Telescope & fits Tubes with ODs 288mm to 298mm Kendrick “Baader” Astro Solar Filters are full aperture filters (some are “Off Axis” type, if indicated) for all the most commonly used telescopes in amateur astronomy. The cells are aluminum and all have three nylon thumb screws to facilitate a secure fit on the front of your telescope. The filter material itself is the famous BAADER AstroSolar Film. This film has set a new standard for white l… |
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Kendrick Baader Visual & Photographic Solar Filter for Celestron C-5 & Meade ETX 125 Telescopes & fits Tubes with ODs 140mm to 150mm Kendrick “Baader” Astro Solar Filters are full aperture filters (some are “Off Axis” type, if indicated) for all the most commonly used telescopes in amateur astronomy. The cells are aluminum and all have three nylon thumb screws to facilitate a secure fit on the front of your telescope. The filter material itself is the famous BAADER AstroSolar Film. This film has set a new standard for white l… |
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Kendrick Baader Visual & Photographic Solar Filter for Meade Etx-90 Telescope & fits Tubes with ODs 95mm to 105mm Kendrick “Baader” Astro Solar Filters are full aperture filters (some are “Off Axis” type, if indicated) for all the most commonly used telescopes in amateur astronomy. The cells are aluminum and all have three nylon thumb screws to facilitate a secure fit on the front of your telescope. The filter material itself is the famous BAADER AstroSolar Film. This film has set a new standard for white l… |
This entry was posted on Tuesday, December 27th, 2011 at 10:59 am and is filed under Telescopes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.