Is it true that buying a va home, the va will go no lower than 95% of the asking price of the home?

Question

The realtor said that the va won't accept no less than 95% of the asking price .

Answer 1

VA being Veteran's Administration?

That may be true. It's a government agency, and they really have no reason to care whether the government turns the asset into cash or if it just sits there and rots, destroying the value of the neighborhood in the process.

Their asking price will be based on the amount owed at foreclosure. This is often well over the fair market value at the time of the initial purchase, so if it has not been long enough for the real fair market value to catch up, 95% of asking may still be 105% of actual value.

Don't expect bureaucrats to care about fair market value. It isn't their money.

Answer 2

Well I don't know the circumstances of the transaction to give you proper opinions about why the agent said that, but I can give you the places you can go to check on proper answers to your question.
Department of Veteran Affairs – Home buying programs for Veterans:
http://www.homeloans.va.gov/veteran.htm
Real Estate for Sale by US Government:
http://www.firstgov.gov/shopping/realestate/realestate.shtml and this link: http://www.homesales.gov/homesales/mainAction.do
If you wish to conduct a more detailed free research on your inquiry you should go to our educational real estate research page http://www.realestateformnm.com/ResearchLink.html there you will find more links for real estate related research than any other site.
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