Government Fails Our Veterans

One would think you were to support the brave man and women who serve in the military. One would think, especially the government would do everything it could to help returning vets, right? Well if you did think that you would be WRONG!

More than a few home builders are shying away from or have quit dealing with who use the program. The VA appraisers have become so conservative with their appraisals the homes rarely close, and those that do take an incredibly long time. “Builders tell us the VA program is broken and so frustrating that some may eliminate sales to buyers using the VA program” summarizes Judy Kahn a VP with JBRC (John Burns Real Estate Consulting).

The major problem is that the VA appraisers  are procedurally mandated to err  on the side of caution when evaluating properties, supposedly to protect the veteran. This causes appraisals to be far below other conventional and FHA appraisals and the actual market. Relevant and recent conventional appraisals are being overlooked as a comparison.These practices assure the deal does not close. These low appraisals further depress the general market, which is already in a fragile state. You would think the government would be part of the solution and not part of the continuing problem.

Besides taking longer than conventional appraisals, the VA appraisals don’t take into consideration options and upgraded features in the home. Working with the VA in this process causes us to lose money in an economy where our margins are already stretched very thin, is a statement repeated by many builders. Many builders are reluctantly looking at not doing business where the VA loan program is involved.

As I, and many others have said, those suits in Washington don’t a clue as to what to do to fix this mess that they created. Instead of listening to the men and women in the trenches, those of us who are invested in the home building industry, they continue to throw things at the wall and hope something sticks. Not too smart Washington!

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