My client has a VA loan with Chase. The buyer got an FHA appraisal that came back approx $10k less than the list/offer price and it is not too far from reality. On the other hand, the VA appraised the property $20k MORE than FHA! The initial list had been high, closer to the VA value, precisely to forestall this kind of scenario.
My question: is it true that all VA loans must net 88.13% of the value? This is what I was told by the Chase negotiator. Although I managed to get VA to reduce the price by $10k it is still difficult to obtain that net and close the deal, granting the buyer produces a "gift" for the difference between FHA-VA appraisals.
Any words of wisdom out there in SS cyberland?