Do Offers With FHA or VA Mortgages Cost Sellers Money?
I pre-approved a buyer with a VA home loan last summer and she’s been having a tough time getting an offer accepted. Many Southern California sellers are banks or upside-down sellers who need bank approval for a short sale. There is a strong bias against accepting offers with government financing among asset managers, lender loss mitigation departments, and even equity sellers because of the myths associated with “mandatory seller-paid costs”. I’ve been encouraging buyer’s agents to ask the listing agent to call me before presenting the an offer with government financing so that we can discuss the financial implications of the loan to the seller. In some cases, I attach a copy of How To Get An Offer Accepted With An FHA or VA Mortgage with the pre-approval letter so that we can debunk the most common myths associated with government financing: • The low down payment requirement means less skin in the game • The (misguided) perception that the seller must pay for some or all of the buye
