When & How to use the ‘FHA or VA Notice and Addendum’ | Military Home Loans

When & How to use the ‘FHA or VA Notice and Addendum’

When & How to use the ‘FHA or VA Notice and Addendum’

My current broker says we have to use it.  
My old broker says it’s optional. 
The listing agent has never heard of it. 

When should we use it, and how? 

Here’s the simple MHL recommendations to maximize this form.

Good intent

It’s goal was to openly and clearly discuss any request for seller credit and repairs. 

These issues were often not addressed upfront when the seller said yes to an offer.  Then they’d come up, weeks into the deal as ‘surprises’.  Not a good way to win friends and influence people. 

Bad implementation

Talking about seller credit is fine, but redundant.  The “additional financing terms” part of the contract already covers that topic.

Talking about VA required repairs, when the VA appraisal hasn’t even been ordered yet is the big problem.  How do you ask for something that you don’t know yet?

Repurposing it to make strong offers even stronger

Our recommendation is to skip this form for anything but a super strong offers in a highly competitive situation.

Rather than using this form to call attention to the request for seller credit and repairs, we recommend using it to point out the times you have a lack of seller credit and repairs. 

“Request ZERO seller credit.  Buyer’s lender to cover all VA non-allowed fees”

“Buyer will pay for any VA required repairs from the appraisal or termite report with seller’s permission to do the work”.

Shout it from the rooftops

Ultimately, this is just another way to blasting it to the seller (regardless of how their agent spins it) that this VA buyer isn’t going to cost them any extra surprise money. 

When you need that message shouted, then pull out this form and put it on top of the contract when you submit.

 


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