[merled]

This is a real shame and they should be ashamed of themselves, the Villages mortgage folks. A man or woman puts there life on the line to protect this great country and gets this kind of treatment. I thought discrimination was against the law!
Like GMONEY said "Improvise, Adapt and Overcome" !!!!
Good luck,
Merle

[73Goat]

I had the same question since both my wife and I have VA loan eligibility. The bottom line is that TV does not build to VA requirements so you cannot get a VA loan for a home under construction.

That being said, one of the quirks of the VA loan process is that you CAN get a VA loan on a 'spec' home if it is completed and even if it wasn't built VA. I was told this by the VA who said a VA lender could handle the process.

Here's the email exchange with the VA
==================

From: VAVBASPT/RO/HOMELOAN [mailto:HOMELOAN.VBASPT@va.gov]
Sent: Tuesday, November 02, 2010 1:32 PM
To: Marsh, William E
Subject: RE: Question about VA loan eligibility for spec homes



It is possible - just find a VA approved lender and they will be able to take care of the entire process.



From: Marsh, William E [mailto:]
Sent: Tuesday, November 02, 2010 12:48 PM
To: VAVBASPT/RO/HOMELOAN
Subject: Question about VA loan eligibility for spec homes

If a new spec home is completed, but was not built VA , i.e., no inspections, is there a way for me to purchase the home via a VA loan. I have VA loan eligibility but the home was not built VA, it is completed.

[graciegirl]

Thank you for serving our country and Welcome to you!

[jflynn1]

why not use a private bank?

[silvertoken]

The advantages to get a VA loan are:
1. No down payment required.
2. Great interest rates
3. No private mortgage insurance (PMI) required.
4. Easy loan qualification
5. Loan guaranteed by the US government.

[silvertoken]

Originally Posted by graciegirl

Thank you for serving our country and Welcome to you!

Thank you, That is very gracious of you.

[getdul981]

The way I understand the way a VA loan works is that the seller has to agree to pay a certain percentage of the closing costs or the selling price or something like that. If you are willing to pay that yourself, you might be able to get the VA loan.

While we were in the process of selling our house in VA, our realtor explained how the VA loans work and she told us that we were better off going with a conventional instead of the VA. I think you have to purchase mortgage insurance with a VA loan also which would offset the difference in percentage points.

I'm not 100% sure how they work, so I would suggest checking with your lender about how you could go about it.

[Fourpar]

When buying new construction in Villages, you will use the Villages contract form to purchase. That contract has no mention/contingency concerning a mortgage. As far as the Villages is concerned, you are committed to pay the contracted price on closing day, regardless of where your funds come from.

Since VA does not allow the Veteran to pay certain closing costs (and requires the property meet certain construction/inspection standards), it stands to reason that you cannot use VA loan to buy New Construction.

Conventional mortgagees don't care who pays the costs involved in the loan. They require that the house appraises for value, but closing costs are buyers' unless agreed upon otherwise by Sellers.

Again, The Villages don't care if you get a loan, but their contract doesn't protect you the Buyer in the event your lender can't close on time.
It's a one-way street buying from The Villages!

That's my experience, for what it's worth!

[taylor111947]

I just found out I was eligible for a VA mortgage as a surviving spouse. I've never bought/sold a home on my own before so I'm chartering new territory here. It sounds as if the main differences between VA and Conventional mortagages are no 20% down and the seller pays some of the closing costs for a VA loan. Am I undertanding it correctly? Also, can the seller refuse to allow VA financing?

[getdul981]

Originally Posted by taylor111947

I just found out I was eligible for a VA mortgage as a surviving spouse. I've never bought/sold a home on my own before so I'm chartering new territory here. It sounds as if the main differences between VA and Conventional mortagages are no 20% down and the seller pays some of the closing costs for a VA loan. Am I undertanding it correctly? Also, can the seller refuse to allow VA financing?

It's always been my understanding that the seller has to agree to let you get a VA loan because they have to pay some of the closing.

[silvertoken]

Originally Posted by getdul981

It's always been my understanding that the seller has to agree to let you get a VA loan because they have to pay some of the closing.

The guidelines are as follows, The seller "may" contribute up to 6% of the contract sale price for funding fee, closing cost(including the $2500.00 origination fee). prepaid and other expense.

What is sad is some of the sellers are misinformed about VA and have literally refused selling to veterans of the United States of America. This is only a bargining tool exclusively for veterans. If you have noticed lately a lot of realtors rather use their own banks and frown on the ones you choose, this a countrywide event and does not just pick on the village.

VA loans are contigent on the following, acceptable appraisal to support the value on signed purchase agreement, acceptable title policy, acceptable flood certification, clear termite inspection, final underwriting approval. So if the sellers refuses to sell to a veteran, there must truly be something wrong with the house.
Sincerely

[silvertoken]

Originally Posted by Fourpar

When buying new construction in Villages, you will use the Villages contract form to purchase. That contract has no mention/contingency concerning a mortgage. As far as the Villages is concerned, you are committed to pay the contracted price on closing day, regardless of where your funds come from.

Since VA does not allow the Veteran to pay certain closing costs (and requires the property meet certain construction/inspection standards), it stands to reason that you cannot use VA loan to buy New Construction.

VA requires compliance inspections in most cases on proposed new construction to see that the house:

•Meets accepted standards of good construction.
•Conforms to the plans and specifications on which VA's appraisal is based.
VA will try to assist you in getting your builder to correct any defects about which you may have valid complaint
The State of Florida has weathered many storms and increased insurance rates. Im sure the old nail and hammer routine has been updated with reinforced windows and bracket construction.

[Sparky-30]

Forget the new home, pre owned is the way to go, especially if you can find one with lots of amenities already in it, e.g. Pavers in driveway or stamped, lanai thats finished off making it a Florida room,etc, you will save yourself lots and lots of $$$ that way, because once you move in to a new home and look around at other homes with the above mentioned amenities you will want to do that also. We bought our home 3 months ago, even had a golf cart that went with it.

[silvertoken]

Originally Posted by getdul981

While we were in the process of selling our house in VA, our realtor explained how the VA loans work and she told us that we were better off going with a conventional instead of the VA. I think you have to purchase mortgage insurance with a VA loan also which would offset the difference in percentage points.

I'm not 100% sure how they work, so I would suggest checking with your lender about how you could go about it.

A veteran gets a VA loan to avoid private mortgage insurance, PMI. All they pay for is a VA funding fee which is 2.25% of the cost of the house. This is usuallly added to the cost of the house at closing.

[silvertoken]

My wife and I will be coming by the 6-9 Dec.. We got married by Elvis in Vegas a couple years ago and we are now looking for our Graceland in The Villages. I tried to convince her that King Ludwigs castle in Germany was a nice place to live, and brought her there and she said it was nice but, was very insistant on showing me The Villages instead.