FHA and VA Buyers – Think About New Builds

eagle heightsHere’s the basic reality of purchasing a home with either a VA or FHA loan. It’s bloody difficult in this market, especially under $175,000.

Why? It’s rather simple …

  • Multiple offers are the norm and, if someone else comes in with cash, an FHA or VA offer is DOA.
  • FHA offers often have seller concessions to closing costs attached which, when placed side-by-side with a conventional loan, renders a FHA or VA loan DOA.
  • VA loans come with additional costs to the seller. So, while these offers often are golden – it’s hard not to get a VA loan approval – the escrow fee and underwriting fee legally charged to the seller render the VA offer DOA.
  • FHA and VA appraisers are wildly unpredictable but too often seem to err on the side of lower valuations.

VA loans seem to carry an extra stigma because, relatively rare as they are, many listing agents don’t have the slightest idea how to handle them.

There is, however, a simple solution to escape the multiple-offer hell that is the Phoenix real estate market. Purchase a new build.

Build times for a brand new home are four to six months. Spec homes generally are ready to go in four to six weeks.

And, as long as the community has been approved for FHA and/or VA financing, buyers needn’t worry about the stigmas many sellers attach to those loans.

New builds are available throughout the Valley; for information on what might be available in your price range that fits your needs, call me at 602-502-9693 and we can talk more about finding the right house for you.

Jonathan Dalton

Jonathan Dalton is a 40-plus-year resident of the Valley and has been helping folks buy and sell homes since 2004. He can be reached at 602-502-9693 or info at allphoenixrealestate.com.