There was a time when a VA home loan was one thing a soldier or veteran could count on when shopping for a home. Those days may have passed as a recent trend shows sellers refusing to sell to buyers with VA home loans.
VA home loans allow active and retired service members to purchase homes with no money down and very low interest rates. Real estate agents and brokers, however, are noticing a trend in sellers rejecting VA bids for a number of reasons:
- Buyer risks;
- New and severe inspection standards; and
- The amount of paperwork involved in VA loans.
Essentially, VA home buyers are being punished out of fear that because they have a home loan not requiring a down payment, they are buying more house than they are able to afford. Therefore, the sellers have no faith the loans will actually be approved.
What is not being understood is that VA loans are all underwritten and will not be denied. Still, sellers don’t want the financial risk of going into escrow and then having to pay the extra fees associated with a home loan falling through.
Unless lenders want to begin taking the time to close a home sale with a buyer backed by a VA loan, soliders and veterans may continue to struggle along with the housing market when relying on a VA home loan.
Additional housing benefits are available to disabled veterans which may be based on your disability rating. Contact the veterans’ disability rights law firm of LaVan & Neidenberg.