Hello, LOs!
The New York Times published a story this morning detailing the challenges that veterans face when trying to purchase a home with a VA mortgage.
Many of the anecdotes match what HousingWire has heard for the past year-and-a-half: sellers often won't consider VA offers unless they're WAY over-ask. And even then, they usually go to the bottom of the stack.
"If we bid $285,000, they would accept a different bid for $260,000," said Shawn O'Farrell, a U.S. Army veteran who deployed to Iraq three times. "It seems there's still a myth about V.A. loans, and sellers are being told that V.A. loans are horrible and they should never take them."
Though the process is far more streamlined than it was a decade ago, stereotypes about bureaucracy and red tape persist. Seller's agents have been known to advise clients that the paperwork is a headache and appraisers could lowball them.
The problems appear to be most pronounced in New York City. The VA required one condo seller in Long Island City to provide a spreadsheet of the building's sales activities, documented evidence of the building's recreational facilities, and even minutes from the building's homeowner's association meetings.
So, LOs, lemme ask you: Are there any steps the VA could take to make it easier for veterans to compete in this market? What would you like to see done? Email me at jkleimann@housingwire.com.
While I have you, I'd like to share a response from yesterday's newsletter subject: the challenges of being a new LO in the current market.
An LO from a Southern state said he was hired at a medium-sized bank on March 10, 2020. Ten days later, his onboarding plans "went out the window," for obvious reasons. The manager who hired him was terminated for unknown reasons 10 months later. He's struggled to find his footing.
"I did not do a good job of pivoting and utilizing social media tools and 17 months later, still find myself with few COI partners," he said.
"Watching my colleagues hit $2 million, $4 million, $10 million per month while I'm about to have my second goose-egg in a row has been quite discouraging. I have met some great veterans... who have all told me I'm 'not doing that bad,' and typically it is a three-year period before traction starts."
How long the LO can hold on for, he doesn't know. Any advice for the LO? Feel free to share by emailing me.
Alright, that's it from me. Hope you all have a great day!
James Kleimann
Managing Editor, HousingWire
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