Trouble with VA loans?

I've heard from a bunch of LOs that it's very difficult for buyers with FHA or VA loans to compete with cash buyers.

Good afternoon! Was this newsletter forwarded to you? Sign up here. Hello, LOs!   The purchase market is certifiably insane right now. I've heard from a bunch of LOs in recent months that it's very difficult for buyers with FHA or VA loans to compete with cash buyers and highly-qualified conventional conforming borrowers. So let's talk about it.   My colleague Alcynna Lloyd recently spoke to Bryan Bergjans, director of military lending at Caliber Home Loans about the issue. With the supply imbalance, Bergjans said veterans are increasingly being shut out of the American dream of homeownership.    "The opportunities are very slim for our folks," he said. "I think what is the most frustrating is the lack of education in our industry around the VA home loan benefit, which then takes a lot of our military clients out of the purchase market in general because we have listing agents, and we have real estate professionals with this unconscious bias around the benefit so they're discouraging their clients from accepting these types of contracts. So now our military veteran clients are not very competitive when they're going into these buying scenarios."   He said there is a misconception among agents that, because VA borrowers are receiving a 100% financed government loan, they are "subprime customers."   LOs, do you agree with what Bergjans said? What has your experience with VA borrowers been like during this loco market? Have you recommended that eligible borrowers skip the VA loan and seek a conventional loan to better compete?    As always, please reach out by emailing me at jkleimann@housingwire.com.    James Kleimann Managing Editor, HousingWire Will the next job wave mean the end of forbearance?   Last Friday, the Bureau of Labor Statistics reported that 916,000 jobs were created in March, and the previous month's revisions came in positive. HW+ Premium Content CFPB proposes foreclosure ban until 2022   The proposed rulemaking would provide a special pre-foreclosure review period prohibiting servicers from starting foreclosures until after December 31, 2021. How 2020 is still shaping the way lenders use data   The Radian HPI is a comprehensive and timely measure of U.S. housing market prices and conditions, and is available just 15 days after each month ends. Using the Radian HPI, data is easy to digest and deriving insights is intuitive. Presented by Radian Housing inventory is down 40%. Buyers are paying the price   A 46% drop in new listings has led to a pricing surge of 21% in 2021. Don't expect inventory to increase much anytime soon, either. Close loans faster with quick and easy VOE+VOI verifications Stop chasing down verifications across multiple service providers. Truework can process all of your VOE + VOI verifications in one easy-to-use tool. Lenders are saving time and eliminating hassle by using Truework. Uplevel your underwriting today. Sponsored by Truework HousingWire, 433 East Las Colinas Blvd., Suite 830, Irving, TX 75039, (469) 893-1480 Unsubscribe Manage preferences

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