Quick Read for Realtors and Lenders

Brief Summer Update for lenders and realtors.

4 different scenarios involving VA Buyers.

Scenario #1. VA buyer advises he would like use VA entitlement but can close conventional if Seller requires. VA buyer retains my service to secure VA Condo Project approval. Midway through escrow, Seller switches gears and requires conventional close by COE date. Lender does a quick turnaround and gets conventional appraisal and loan approval with only 1 week extension required. Buyer approved to close conventional on Monday. Not sure why Seller had to close asap. At least VA buyer could afford to finance either route. Suggestion: If you represent a VA Buyer, let the Seller know you can close conventional if required. You may get your offer accepted.

Scenario #2. Longtime Attorney friend in Newport Beach, CA said client abandoned project midway through condo conversion process and decided to "rent" the Units. Now has changed gears and want to move forward and "sell" the Units. Question: Does VA approve condo conversion projects ? Short answer is: Yes, after all of the documentation has been approved by DRE, recorded and a White Report has been issued or is pending.

Scenario #3. Lender in San Diego has VA Buyer who wants to buy a Unit in a new construction condo project in beautiful San Francisco. Questions: Can you get you get this Project approved ? Does VA have a "Pre-Sale" requirement ? Yes to both questions. Once the VA Buyer is under contract, I contact the developer and see what color report the DRE has issued to date (i.e. Pink, Yellow or White). The VA pre-sale for new construction is 70% of the Units in the DRE phase or in the Building in a single phase project. VA can reduce the pre-sale to 51% based on a written request which complies with the VA regulation conditions.

Scenario #4. VA Buyer wants to buy a Unit in a 15 Unit Condo Project. One (1) entity owns four (4) Units. Question: Does VA have any issues with single entity ownership of more than one (1) Unit ? Short answer is No. FHA prohibits single entity ownership of more than 10% of the Units in a Project.

Good luck to both conventional buyers and VA Buyers in this high interest rate multiple offer environment.

I can let a seller's agent know in 5 business days if I think the Project will be VA approved based on my review of the recorded documents and the HOA documentation.

Lets help VA Buyers who make an offer as thanks for their service in the military for protecting for our freedom.