Some veterans are finding it difficult to obtain a home in todayโs market. According to the National Association of Realtors (NAR):
โConventional conforming mortgages (mortgages that conform to guidelines set by Fannie Mae and Freddie Mac), accounted for 74% of mortgages obtained by homebuyers in May 2021, an increase from about 65% during 2018 through 2019โฆThe share of VA-guaranteed loans has also decreased to 7% in May 2021 from about 10% in past years.โ
Recent data in the latest Origination Insight Report from Ellie Mae sheds light on the continuation of this trend. Below, we can see just how small of a share of total financing VA loans made up in June of 2021, according to that Ellie Mae report:
The drop in VA loan usage can be attributed to the difficulties veterans continue to face when buying a home. The NAR article elaborates:
“It is extremely difficult for FHA/VA buyers to get accepted in a multiple offer situation. They are on the bottom of the hierarchy.”
One contributing factor is that buyers with VA loans canโt waive certain contingencies. However, just because a certain contingency must be present for a particular buyer doesnโt mean that buyerโs offer shouldnโt be considered.
What Should Sellers Do To Help Create a Level Playing Field?
As a seller, itโs important to consider every offer in front of you regardless of loan type. If youโre selecting an offer because some contingencies are waived, keep in mind that it doesnโt always mean the offer is whatโs best for you.
Buyers who canโt waive specific contingencies may adjust other terms in their offer to make it more appealing to sellers. This may depend on several factors, including their loan type and location, but a motivated buyer and their agent will do everything they can to present an offer thatโs as appealing to you as possible.
Ultimately, you should make sure you take time to really understand the terms of their offer and see the big picture. Working with a driven buyer whoโs motivated to purchase your house may provide a better opportunity for you to reach your overall best option and whatโs most important to you.
Bottom Line
If youโre ready to sell, letโs connect. Together, we can make sure you understand the terms of all offers so you can give each one fair consideration, including those buyers using a VA loan. Our veterans sacrifice so much for our country. Theyโve earned our gratitude and should have the same opportunity to obtain the home of their dreams.
Content previously posted on Keeping Current Matters
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