Too many homes won't qualify for VA/FHA Loans

I sat down with one of my preferred loan officers last week for lunch.  Of course the main subject of conversation was the general state and trends that we see in general real estate market.  He mentioned the fact that somewhere around 90% of all the homes being purchase right now are being purchased with government loans.  I pointed out the fact that a large portion of the properties on the market here in the DC area are distressed sales (short sales or Foreclosures) that are in bad shape and will not pass a VA or FHA home inspection.

 

The politicians in Washington are giving banks money to help offset their losses so they will lend out money again so that people can buy homes and stabilize the housing market.  However, the banks are using that money to compensate themselves for the losses and dumping their foreclosures on the market without doing any repairs to them.  Since the foreclosure process takes such a long time, many of these homes have deteriorated significantly since the past owner moved out, and in many cases the past owner saw to a certain amount of damage on their way out.

 

It seems like a vicious circle.  People don’t have 20% to put down on a home so they have to use government loans.  But 25% of the homes on the market are eliminated from their possibilities because they require too much repair and the banks refuses to repair them.  So those 25% of the available homes are sitting on the market dragging down home values.  It is also sad that very nice homes are not an option for would-be home buyers.

 

So, if you want to expand your home buying options by another 25% come see us at Snow Goose Homes LLC.  We are capable and willing to buy a home do the repairs and present it to you as the end buyer in completely refurbished and ready for the VA or FHA inspector.  Many times we could do this cheaper than many of the other move in ready homes in the neighborhood.  That’s because banks nearly have to give a home away if 90% of the home buying population can’t even consider them.

 

We also may have some solutions on how to get you out of your current home so you can take advantage of this incredible market.