Having a Buyer Carrying a VA, FHA or USDA Loan?Thursday April 28th 2011
If the buyer has a VA, FHA or USDA loan you are going to have to jump through a few minor hoops before you can get an underwriter to approve a loan for a house resaling at a significantly HIGHER number than tax records shows you bought it for just months earlier.
TIP: always keep all the records and receipts for the ALL the improvements done on your home. The underwriter and/or appraiser WILL ask for this sometime before closing. Keep in mind holding costs (such as financing, mortgage, energy, yard maintenence, cleaning, etc.) And closing costs (on both the buying and selling end). By having this already figured out and prepared and having a good broker who is able to explain this to an underwriter or appraiser with the numbers to back up what they are saying will help in a big way towards closing your home.
"I never took into consideration the holding and closing costs for investors to buy, flip and resale their homes"-appraiser for a USDA loan underwriter who was having a hard time justifying the price of a home we sold 16 days on the market... It closed 3 days early.