Loan Products

Should Sellers Accept A VA Offer?

Here's why sellers should accept a VA offer on their home.

Written by D.S. Morgan
March 2, 2024

VA Home loans are an excellent option for the men and women that have served our nation. They offer 0% down payment, lower fees, and competitive interest rates. Because of this, many veterans choose VA products even if they qualify for Conventional ones. Despite this, many veterans have trouble buying a home with their VA financing, and this is due to many sellers having drawbacks about accepting a VA offer.

In this article, we'll go through the details of the VA Offer and explain why many sellers can actually benefit from VA financing too!

Why Sellers Should Accept A VA Offer

There's no one-size-fits-all answer! And, as we will later see, sometimes the property isn't in good enough condition to go VA. But, assuming that the property is in good condition (it meets the VA Guidelines) there are many reasons why a Seller would accept and even prefer a VA offer.

  1. Strong Financing: VA loans are backed by the government. But they also require due dilligence to ensure that the borrower is actually approved. Borrowers must first check that they are eligible for VA financing before being accepted by a lender. As a result, many borrowers approved for VA financing close. In fact, VA denial rates are only marginally less than conventional denial rates according to available HMDA Data!
  2. Competitive Offer: VA loans often allow for no down payment, which can make them more appealing to some buyers and potentially lead to a higher offer on your home.
  3. Good Borrowers: Contrary to popular belief about VA borrowers being low credit borrowers, with no assets on hand, with no job or income. The opposite is actually the case, VA borrowers are often just as qualified for conventional products but opt to choose VA products as they have desireable features such as no down payments and reduced fees.

How To Know If A VA Offer Is Right For You

When it comes to assessing whether a home would qualify for a VA Offer, sellers need to address two of the most common reasons VA Loans don't close.

  1. Bad Loan Officer: It's no secret, not all loan officers are created equal, if they were they would all be Home Mortgage Specialists! But far and away the most common reason that a VA loan doesn't make it to the closing table is because the Loan Officer is not experienced enough with VA loans to close it.
  1. Property Doesn't Meet VA Requirements: Before accepting a VA offer, sellers should consider whether or not their property meets VA minimum property requirements. We recommend reviewing the VA Lender's Handbook to review the exact requirments which can be found in chapter 12.

In general, many residential properties will qualify for VA loans if they meet the following requirements.

  • Working electric, heating and cooling systems
  • Adequate roofing that will last the foreseeable future
  • Sufficient in size for basic living necessities
  • Clean, continuous water supply with sanitary facilities
  • Free of lead-based paint
  • Free of wood destroying insects, fungus and dry rot
  • Safe and sanitary sewage disposal
  • Accessible from an all-weather public or private street
  • Attics and crawl spaces must be accessible and properly vented

Good For Buyers And Sellers

Long story short, accept that VA offer, but remember, if you have questions about VA financing you can always reach out to Home Mortgage Specialists, Inc. and one of our specialists will be happy to assist!

The Author
Drew (D.S. Morgan) is a writer, web designer and valued team member at Home Mortgage Specialists, Inc.

The articles written at Home Mortgage Specialists, Inc. are carefully researched but they do not constitute a mortgage offer or mortgage advice. As always, if you need a mortgage be sure to consult a Licensed Professional (luckily we have those here).

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