Veterans: Don't make this home buying mistake

My clients who are veterans often come to me with a few myths about what to expect with VA financing. 

What is VA financing?

One of the benefits to serving in the United States military is that you may use a loan guaranteed by the Veterans Administration when purchasing a home for yourself. This loan is commonly referred to as VA financing, or a VA loan.

A huge perk to the loan is that there is no down payment required for your purchase. In fact, many of the veterans I have helped have purchased their home with zero out-of-pocket investment. But we'll get into the hows and whys of that on another post.

What I want to focus on here is one of the myths that some veterans believe about VA financing.

Myth: the appraisal for a VA loan is the same as or can serve as a home inspection.

This is definitely not true. 

The photo at the top of this post shows the extensive hail damage to a home one of my buyers was in contract to purchase. Their home inspector identified the hail damage on the front columns (pictured), the windows, the siding, the garage door, the gutters, the roof, and the trim. The appraiser made no note of it at all.

Why is this important? VA loans have developed a reputation for having stringent requirements for the condition of the home, and I think that has led veterans to believe that the VA inspects homes for them. 

In this particular case, the seller refused to make any repairs to the home my buyers planned to buy. If we had not gotten the home inspection, and had relied instead on the appraisal to determine the condition of the home, my buyers would now be the very unhappy owners of a house that needs thousands of dollars in repairs. (Side note: read their full home buying story here.)

On the flip side of the coin, sellers are sometimes advised by their agents that accepting an offer from a VA buyer is a risk because the VA will require the seller to make repairs to the home. This does happen from time to time, but you can see from my example that it does not happen every time, even if the damage is extensive and easily visible.

So veterans, don't make the mistake of relying on your VA appraiser to inspect your home. Instead, invest in the services of a professional home inspector. It could save you thousands!

Thinking of buying or selling in the Charleston, SC real estate market? Let's connect. Fill out the form below, or call me: 843-870-0890.