VA loan myths sellers still believe, and how to beat them

Most seller worries about VA loans are outdated or flat wrong. You beat them by answering each one inside your offer, before anyone has to ask.

A seller doesn't have to take your VA offer. But a VA offer written well can stand next to a conventional one. Here are the myths you'll run into, and what to do about each.

Does the seller have to pay a VA buyer's closing costs?

No. VA doesn't make the seller pay anything. It says the buyer and seller can negotiate who pays closing costs, including items like the appraisal fee, title insurance and recording fees.

Sellers can offer credits if they choose. VA caps seller concessions at 4% of the home's reasonable value. That's a limit, not a requirement. Credits toward regular closing costs are treated differently than concessions, so have your lender explain what counts.

How to beat it: Only ask for what you need. If you're competing for a house, a small ask or no ask can help more than you'd think. Your lender can tell you what you need to bring, and we'll build the offer around that number.

Is the VA appraisal a long repair list?

No. It's a baseline. VA's minimum property requirements come down to a home being safe, sanitary and structurally sound. The appraiser checks that and gives an opinion of value.

It's fair for a seller to worry on an older house with a real problem. A failing roof or a safety issue can come up, and it has to be dealt with before the loan closes. But the appraiser isn't there to pick apart paint colors and worn carpet.

How to beat it: Find problems early. VA strongly recommends a home inspection, and an appraisal isn't one. Use your inspection during due diligence, and I'll flag anything that looks like it could become an appraisal issue. Then we can handle it with the seller before it turns into a surprise.

Do VA loans take too long to close?

Not by default. A VA loan has a few steps of its own, like your Certificate of Eligibility and a VA-approved appraiser. Those are steps, not built-in delays.

What sets the pace is your lender, the appraisal, and how fast everyone answers. I won't give you a number here, because timelines vary by deal. Your lender can give you a real one.

How to beat it: Get your Certificate of Eligibility handled up front. Pick a lender who does VA loans often, and ask them to confirm the closing date before we write the offer. Then I can put a date in your offer that everyone can stand behind.

Does no money down mean a weak buyer?

No. It means you earned a benefit. A VA loan has no down payment as long as the sales price isn't higher than the appraised value.

You still have to qualify. VA says you need to meet its standards and your lender's for credit, income and other requirements. So a VA buyer with a solid pre-approval has been looked at, same as anyone else.

How to beat it: Send a pre-approval letter that's specific to the VA loan and current. A quick call from your lender to the listing agent helps too. It answers the seller's question before it gets asked.

Is the VA escape clause a free way out?

No. It's narrow. The VA escape clause applies when the contract price is higher than the value VA sets. In that case you can walk without losing your earnest money. You can also keep going and cover the difference yourself, or try to renegotiate.

It isn't an exit for changing your mind. And in North Carolina, the money you put up during due diligence matters here too.

Under the standard NC contract, you can end the deal for any reason during the due diligence period. You'd typically get your earnest money back. You typically wouldn't get the due diligence fee back unless you negotiated otherwise.

That's your best answer to a nervous seller. Your fee is real money that goes to them. It shows you're serious.

It's also real risk for you. Don't assume the escape clause gets your due diligence fee back after a low appraisal. That's a question for a North Carolina real estate attorney, before you sign. Only offer a fee you can stand to lose.

How to beat it: Offer a due diligence fee and earnest money that fit your budget and the house. Here's how both of those work in NC. Tell your lender what you plan to put up, so nothing surprises anyone later.

What does a strong VA offer look like?

A strong VA offer answers the seller's worries before they come up. Here's what I'd want in yours:

• A current pre-approval from a lender who knows VA loans
• A due diligence fee and earnest money that show you're committed
• Seller credits only where you need them
• A closing date your lender has already confirmed
• A due diligence period with enough time for your inspection and appraisal

That last one matters. A short period can look better to a seller, but the North Carolina Real Estate Commission advises leaving enough time for the appraisal and loan approval. Don't cut it so short that you're exposed.

I'll also call the listing agent and walk through how your loan works. If the value looks tight, VA's process gives us a chance to send the appraiser comparable sales, and I can pull those for you. If you're just starting out, my VA buyer page covers the bigger picture.

Talk through your offer with me

If you're using your VA benefit around Charlotte, call or text me at 980-307-5558, or reach me through the contact page. I'll go over how to set up your offer before you write it. Your lender handles the numbers, and I handle the deal.

I don't work for the VA, and nothing here speaks for it. Your lender and VA have the final word on your loan.