Tidbits on Real Estate

T.E. Sumner answered:

First, your Realtor should be answering this question for you, not your loan officer. As any Realtor trained in HUD bids will tell you, the net bid to HUD is the key to winning the property. If your real estate agent says you can afford to have HUD subtract the $3k, then that's the advice you want. Since you can't really buy HUD homes without a registered HUD Realtor, just ask -- that's what they're paid for.
As to re-running your file, that is a 2-minute process on AUS. The big issue with VA is the slowness of getting the whole thing done. If you don't already have your certificate of eligibility, for example, that can take as little as 10 minutes or as long as 2 weeks. The appraisal will be fast.
So, why the concession for non-allowables?

Because there are things VA does not allow you (and me) as veterans to pay for. Typically, Origination, Appraisal and Credit Report are the totality of allowed expenses. So, who is going to pay for the survey, inspections, tax certificates, processing fee, admin fee, closing fee and so on? The seller. It isn't that you may or may not have the money -- the rules say you can't pay for them.

So, if your Realtor says the net to HUD needs to be x, and your loan officer tells you that you need y to cover the non-allowables, then tell your Realtor to increase the net bid x to add y on the seller-paid closing costs on the bid.
Since I can't tell if you have already bid and are waiting for closing, or are just trying to bid, if the situation is the former, you'll need your Realtor to contact the M&M company to discuss modifying the contract.
I am a veteran, loan officer - including VA, and a Realtor.
- Fri Jun 13 2008, 18:59