VA Buyer $0 down - How do lenders treat this???

I have a VERY qualified, pre-approved with underwriting approval, Buyer, who wants to buy a home VA with 0 down in Orange County, CA.  Max loan amount is $593,000-ish, including the VA funding fee and closing costs.  Which means actual sales price is around $565,000.

 

My question has to do with the Lenders.  Are they open to VA Zero down Buyers?  After all, they have to add the exorbitant funding fee of 3.5% to the purchase price AND have to work around the Sellers who can't fix anything.

 

Any suggestions???  Will VA accept homes in SoCal with $0 down? 

 

I would love input!!  Thanks so much...

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Permalink Reply by Loren Hoboy on September 5, 2010 at 4:31am
Your first question should be how much will lenders loan in your market on a VA loan. Best to just call the buyer's lender ( name on the loan pre-approval) and ask directly. Are they actually fully qualified or just sort of qualified? Ask the tough questions of the lender.
Permalink Reply by Loren Hoboy on September 5, 2010 at 4:52am
Loren Hoboy said:
Your first question should be how much will lenders loan in your market on a VA loan. Best to just call the buyer's lender ( name on the loan pre-approval) and ask directly. Are they actually fully qualified or just sort of qualified? Ask the tough questions of the lender.
My other suggestion is to contact Karol at Gold Coast Lending in Orange County to get the answers. She is a very knowledgeable mortgage broker and provides excellent help and service to her borrowing clients. Her number is (949) 496-6272
Permalink Reply by Lisa Henderson on September 5, 2010 at 8:38am
Boy, was I not clear in my question!!! So sorry. Let me try again.

My buyer is completely approved and fully underwritten - with no borrower conditions - for $593,750. This is the maximum amount in my area. The issue I have is with the lenders on short sales. Will the short sale lenders accept a Buyer on a $0 down VA . The reason I ask is that the offer includes financing the funding fee, and a credit for Buyer closing costs.

Many lenders are not allowing any seller concessions, or at best minimal ones. So how are they approaching a Buyer with a $0 down VA loan?
Permalink Reply by Bryant Tutas on September 5, 2010 at 10:20am
Lisa. My experience is that the lenders will pay up to 3% in seller concessions. If your buyer can pay the the costs above this then I don't see an issue. Now if I were the listing agent I would be a little hesitant in having my seller accept a zero down deal on a short sale unless the buyer fully understood that they would be responsible for any lender required repairs and the buyer was able to put a good deposit and allow plenty of time to get he deal approved.
Permalink Reply by Bryant Tutas on September 5, 2010 at 10:23am
Oops!! I wanted to add that if this is a FHA short sale (pre-foreclosure sale) then the lender will not pay any closing costs for the buyer unless the buyer is getting a FHA loan., In that case the lender will pay 1%
Permalink Reply by Loren Hoboy on September 5, 2010 at 11:06am
In short sales and bank owned when the buyer is doing a FHA loan, you can get the seller's lender to pay up to 3% towards closing costs from my knowledge. I suspect it may depend on the seller's lender rules, but it pays to try.
Permalink Reply by Lisa Henderson on September 6, 2010 at 8:49am
Thanks so much for the information. I reeally appreciate it.

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