Myths of a va home loan

Are you a seller that’s hesitant to accept an offer from a buyer using a VA loan? In this episode of Homemade PA, I want to set the record straight regarding some common misconceptions about VA loans. We’ll debunk these myths to give buyers peace of mind when accepting a veteran’s offer using this loan program.

Seller’s Agents And The VA Loan

When I tell a seller’s agent my buyer is using a VA loan, there are two common comments I hear most often: “Don’t hand me a VA preapproval” or, “Can they get a conventional loan?” It tears me apart inside when this happens because veterans literally sign up to protect our constitution, our freedom, and our rights. In some cases, they even give their lives in doing so. 

We live in central Pennsylvania, an area full of active duty and retired military. I want to set the record straight about VA loans because there’s a big misconception about them in our area. This lets me know that agents are informing sellers incorrectly. However, I’m going to explain to you why you should accept a VA offer. 

I started asking sellers and real estate agents if they would take a VA contract. Would they entertain a VA loan? Would they submit a VA offer? How are they advising their sellers when looking at VA offers compared to conventional or other loan types? What I found was shocking—so let’s debunk the misconceptions now.

Misconception #1: VA Loans Take Longer to Close 

A common misconception is that VA loans take 45, 60, or even 90 days to close. That’s just not true. If a veteran is qualified upfront by a reputable lender—like me and my team—they often close quicker than other loan types. It’s a misconception that’s just not true.

Misconception #2: VA Loans Require More For Appraisal 

The second misconception is that VA loans require an extra checklist on the appraisal. While it’s true that there is an extra checklist, it’s really not a problem. If the house is in good condition and repairs were made before the house was listed—as it should be on any loan—then there should be no issues.

So unless you have exposed wiring, broken windows, trim missing, or stuff that should have been taken care of before the house was listed anyway, don’t worry about this additional checklist. In fact, Pennsylvania just changed its regulations when it comes to VA appraisals. VA appraisers now have seven business days to complete a VA appraisal, which is much faster than any other loan type out there. This means you can get your VA appraisal back in less time. 

Misconception #3: A VA Buyer Isn’t Qualified

Another misconception debunked is that a VA buyer is not a well-qualified buyer because they have to do 100% financing. A VA loan allows a veteran to do up to 100% financing, but most veterans do have money to put down. Rather, they choose not to because they’d rather leave their money in other investments. 

It really boils my blood when I hear from a lot of different sellers and agents that the veteran buyer has no skin in the game. Are you kidding me? They have no skin in the game? They’re the ones that go out and sign up to give their lives for our freedom. They’re the ones that get deployed from their families for months on end—and sometimes years. They’re the ones that lose their limbs on the battlefield, come home with PTSD, and shed their blood for us. They have all the skin in the game. 

Why You Should Accept A Veteran’s Offer

Many people are being told not to accept VA offers because of the misconceptions in the marketplace. If I’m selling my home, you can better believe I’m going to look at VA offers. Why wouldn’t I want to sell my home to somebody willing to lay down their life to protect me and my family? 

The reality is that closing is not an issue if a veteran is qualified upfront by a good quality lender like myself and my team. This should be done on every loan type upfront. Appraisals are, again, not an issue. If the house is in good condition like it should be before it’s listed for sale, you’re not going to have a problem with a VA appraisal.

And again, all veterans have skin in the game. Did you know VA loans outperform all other loan types? That’s right; veterans actually pay their bills. So if you’re an agent or a seller, I urge you to consider those VA offers. Veterans are buying lots of homes right now and should not be treated any differently. If you live in America, cherish our freedom, and value our democracy, then you should honor your veterans.

A Case Study

Take the example of Jason Crawford, a veteran of the United States Army. He served for 10 years, including a tour in Iraq. One of the things that he was most excited about was getting home and using his VA benefits; these would allow him to purchase a house with no mortgage insurance and have a lower interest rate. 

While he was searching for a house, he was discouraged from using his benefits because the VA loan has more steps involved and is more complex. However, at the end of the day, he worked with me and my team. He was able to get through the process with our help and finally purchase the home of his dreams. When you choose to accept a VA loan, this is the kind of story you are creating.

We’re Here To Help

I hope this cleared some misconceptions about accepting VA loan offers. Agents, if you need help getting your VA offers accepted or explaining VA loans to your sellers, please let us help. Feel free to reach out and we’d be happy to assist you.

Don’t forget to subscribe to my channel so you never miss an episode of Homemade PA. Stay tuned to see what I feature next, and thank you veterans for your service!