It used to be that when dealing with VA loans, the loan killer was a low value. Now value is not as much a problem as property condition. There are no problems with my buyers as they have excellent credit and job history. However, the house they wish to purchase is in need of many cosmetic repairs and they have a limited amount of funds without their current home selling first. At only $100,000, this is not a bad deal. Per the appraiser, the house now meets the VA minimum standards in it's FAIR condition (this after some minor repairs). But no mortgage company will give them a VA loan without it being in AVERAGE condition. It needs to be noted that FAIR vs AVERAGE is basically an opinion and it changes depending on the neighborhood. This house would not be considered AVERAGE in a more prestigious neighborhood but it is AVERAGE for it's neighborhood. Common sense would dictate that if there is a MINIMUM Standard for a VA Appraisal that it should somehow also meet the MINIMUM Standards for a VA Loan. But as we all know, common sense does not always rule.
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CDPE, REALTOR® with Prudential Shimmering Sands Realty in sunny Panama City, Florida. Certified Distressed Property Expert
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