Reasons Homesellers should consider VA Loans

Please don’t let old real estate tales or misconceptions keep you from giving a VA loan buyer fair consideration if they make an offer on your home.   Despite a phenomenal rise in their use in the past several years, VA lending is still questioned by some who have old opinions about these quality loan products.  Historical myths and misconceptions about these loans and their performance in the market push some sellers to reject VA offers entirely.   Denying these buyers does two things – firstly, it denies access to real estate to military families who are serving our country and secondly, VA borrowers tend to be some of the most qualified buyers in the marketplace.  

VA loans have a higher closing success rate. VA buyers are more likely to get to closing day, at least on average, than any other buyer on the market. Part of accepting offers is feeling good that the buyer has what it takes to close on the loan. Preapproved VA buyers are as strong a buyer as you can find in the current lending climate. At the end of the transaction, a seller wants a buyer who can actually close the deal. The VA loan program makes a strong case for this reality to occur.  

The VA underwriting process is sharp, quick and to the point. The VA loan process is also less stringent than the FHA or Conventional loan process. Most Veterans go through an Automated Underwriting System in advance of making their offer. Also, perfect credit scores are not required by this program, which makes the process more seamless.   There are also a lot of myths and misinformation out there about VA appraisals. For sellers, your home doesn't have to be in perfect condition to pass the appraisal. If your home is recently built, you have nothing to worry about. Even if it is an old home and not in perfect shape, if the appraiser does flag property condition issues, buyers may be able to obtain an exemption from the VA. 

Finally, some people think  sellers should never accept VA offers because they mistakenly believe they'll have to pay all of the buyer's closing costs. While the VA does limit what closing costs Veterans can pay, sellers are not required to pay any closing costs on behalf of a VA buyer, including non-allowable fees Veterans aren’t legally permitted to pay. The good news is that there is no requirement that a seller pay a dollar toward a VA buyer's bottom line.  

We strongly recommend casting a vote for VA loan acceptance. Why not cast as wide a net as possible? Sellers are not required to accept an offer they don’t like. Plus, VA borrowers have bravely served our country. The least we can do is give them the opportunity to make a strong offer to purchase your home. And, maybe most importantly to the seller’s goals and bottom line, VA buyers are excellent candidates to make a strong offer and get to closing day. Please don’t let institutional myths and misconceptions keep you from giving Veterans, active service members and military families a fair shot at the dream of homeownership.