Matt, the breakdown of full vs. partial entitlement is clearer than most VA explainers I've seen, especially the point that the $832,750 limit only matters for borrowers with partial entitlement. Question on the appraisal risk: in the fast-growing far west Fort Worth and Alliance areas you mentioned, where prices are climbing quickly, how often are you seeing VA appraisals come in below contract price, and when they do, what's your typical playbook to keep the deal together without the buyer having to bring cash to cover the gap?
In the fast-growing pockets like Alliance and out toward Willow Park, we are definitely seeing a gap between what the market is willing to pay and what the historical data tells an appraiser. When you have prices climbing month-over-month, the "comps" sometimes struggle to keep up with the reality on the ground. When a VA appraisal comes in low, my first move isn’t to ask the buyer for more cash; instead, we immediately trigger the Tidewater Initiative. This is a unique VA protection that allows us 48 hours to provide the appraiser with additional market data and pending sales that justify the contract price before the value is finalized.
If the appraiser holds their ground after Tidewater, we pivot to a Reconsideration of Value (ROV). I work closely with the listing agent to highlight specific neighborhood nuances—like a premium lot or specific upgrades common in those new Alliance developments—that the appraiser might have undervalued. Beyond the paperwork, we often look at restructuring the deal. Sometimes that means negotiating a price reduction with the seller by showing them that a low VA appraisal stays with the property for months, or utilizing a seller credit to offset other closing costs so the buyer can reallocate their existing funds.
The goal in this North Texas market is to keep your "skin in the game" focused on the investment, not on overpaying for an appraisal gap. If you’re looking at a specific property in the Far West area and want to run the numbers on a potential valuation gap, let’s jump on a call and look at the recent neighborhood activity together.