And the idea that sellers have to pay closing costs for VA buyers is simply false. In short, there's no reason why a seller should reject your offer to buy simply because you're using a VA loan. VA loan inspectors look for certain problems with a home, such as wood rot or lack of floors, that need to be addressed before the sale can continue. Some sellers refuse VA loans because of that inspection, assuming this will complicate the sale.
Accepting an offer from a buyer who uses a VA loan when selling their home can be as difficult as a buyer using a conventional mortgage. There are a lot of myths and misconceptions about the VA loan, but you, as a seller, need not worry about a thing. What is the reason they are not considered? Because they use VA funding. Sellers, then, can rest assured that the closing will go smoothly when working with a VA home loan buyer.
However, if you plan to use a Colorado Springs VA home loan to buy your dream home, you need to know how it will affect the seller. Many veterans are especially struggling to compete, and according to Wemert and several other realtors familiar with the VA loan program, that's because many sellers, and their agents, don't understand how it actually works. Persistent myths and misconceptions about these loans and their performance in the market push some sellers to completely reject VA offers. While selling to buyers of VA loans is not the best option for most sellers in a very competitive market when there are multiple increasing offers, in a normal market, there are not many downsides.
The VA borrower may request that the seller pay up to 4% of the loan cost in seller concessions, but the seller is not required to cover that amount. Morford says many sellers also pause because VA loan appraisals tend to be slightly lower than general appraisals. VA loan buyers can also compete with a stronger offer, Stewart said, such as paying more than the seller's asking price or waiving contingencies that allow the buyer to withdraw on specific terms. Despite their incredible growth and success in recent years, VA loans continue to have a bad reputation among some real estate agents and home sellers.
