If you're a veteran or active-duty buyer using your VA benefit, you may run into a listing agent or seller who hesitates when they see VA financing on your offer. It happens more than it should, and it's almost always based on outdated information.
Here's what's driving the hesitation and why most of it doesn't hold up.
The "VA Costs Sellers More" Myth
The most common concern sellers have is that accepting a VA offer will cost them more money. They've heard that VA buyers can't pay certain fees, that the seller gets stuck covering them, and that they'll net less at closing compared to a conventional buyer.
That's not accurate.
VA loans do have rules about certain fees buyers cannot pay but those rules have been updated, and in most transactions a VA buyer nets the seller the same amount as any other loan type. The idea that VA financing automatically means a lower net is a myth that has outlived the reality it was based on.
The Pest Clearance Misconception
Here's a specific one that comes up in California and costs VA buyers deals they should win.
There's a widespread belief that VA buyers cannot pay for their own pest inspection or pest repairs. So sellers assume that if they accept a VA offer and there's a pest issue, it lands entirely on them.
That's not how it works. VA buyers can pay for pest clearance and pest repairs. The VA has specifically said they are not prohibited from doing so. I had a buyer in a competitive situation where this came up. Rather than asking the seller to cover pest costs in the contract, my buyer was willing to pay for them directly. We made that clear upfront. The offer was stronger for it and they got the house.
It's a simple thing that most buyers and agents don't know, and it can be the difference between winning and losing an offer.
What I Do Before the Offer Is Even Submitted
When I'm working with a VA buyer in a competitive situation, I don't wait for the listing agent to have concerns but instead I get ahead of them.
I reach out to the listing agent directly and have a conversation. I want to know their experience level with VA loans, whether they have any concerns about the property from a condition or value standpoint, and what matters most to their seller. If there are misconceptions in play I address them before they become a reason to pass on my buyer's offer.
A VA buyer with a lender who communicates proactively is a fundamentally different offer than a VA buyer with a lender who's hard to reach. Listing agents notice that, and it matters.
What VA Buyers Can Do to Strengthen Their Position
A few things I coach my buyers on going into competitive situations:
A strong preapproval, not just a prequalification, signals that the financing is solid and the lender has done the work upfront.
Flexibility on closing timeline can go a long way. If a seller needs to close fast or needs extra time, a buyer who can accommodate that stands out.
Being willing to cover costs the seller might expect to pay, like pest clearance, removes objections before they're raised.
VA financing is a strong loan product. Sellers who understand it don't hesitate. The job of a good VA lender is to make sure the people on the other side of the table understand it too.
