Debunking VA Loan Myths: Why Veteran Buyers Deserve a Second Look
When it comes to VA loans, there are plenty of outdated myths and misconceptions that keep well-qualified buyers from being taken seriously. Whether you're a listing agent, a home seller, or even a veteran buyer yourself, you've probably heard things like:
"VA loans take too long."
"The appraisals are too strict."
"The seller has to pay all these extra fees."
The reality? These statements are not only misleading, but they can also cause sellers and agents to overlook some of the most financially strong and reliable buyers in today’s market.
As a Certified Mortgage Advisor and proud granddaughter, daughter, cousin, and niece of veterans, I'm here to break down what’s true, what’s not, and why VA offers deserve a fair shot.
Why the VA Loan Program Exists
Before diving into the myths, let’s talk about why VA loans were created in the first place.
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The VA loan program was designed to help active duty service members, veterans, and eligible surviving spouses achieve homeownership. But it goes a step further by offering unique advantages:
No down payment required
No monthly mortgage insurance
Competitive interest rates
Lower average default rates compared to other loan types
This isn't just another loan product. It's a well-earned benefit. And statistically, VA buyers are some of the most financially stable borrowers in the market.
Myth #1: VA Loans Require a Termite Inspection That Sellers Must Pay For
This is one of the most common myths that causes unnecessary friction in VA transactions. So let’s clear it up:
Yes, the VA requires a termite (or wood-destroying pest) inspection in areas where termite activity is considered moderate to very heavy. This includes much of the South, including California, Texas, and the Southeast.
However, here's the truth:
In 2022, VA guidelines were updated to allow veteran buyers to pay for the inspection if it’s customary in the local market.
VA buyers can also pay for repairs noted in the termite report, again depending on local norms.
This levels the playing field. Sellers are no longer automatically responsible for these costs, and like any other buyer, VA borrowers can negotiate these items as part of the deal.
Why This Matters:
The inspection isn’t a barrier — it’s a protection for the buyer and ensures the home is structurally sound. Conventional or FHA loans often require similar repairs, especially if flagged during an appraisal.
Myth #2: VA Appraisals Are Too Strict
Another persistent belief is that VA appraisals are "harder" or "more critical" than conventional appraisals. The truth is, they’re just different.
VA Appraisers Have Two Jobs:
Determine the home’s fair market value
Ensure the property meets Minimum Property Requirements (MPRs)
The MPRs are based on 3 simple principles:
Safe (no hazards or health risks)
Sound (no major structural issues)
Sanitary (functional plumbing and utilities)
VA appraisers aren’t doing full home inspections or nitpicking cosmetic flaws. They’re looking for obvious problems like missing handrails, exposed wires, or a leaking roof — issues any lender might flag for health or safety reasons.
Pro Tip for Agents:
If a minor repair is needed, a repair escrow holdback can keep the closing on track. Funds are held temporarily and released once the repair is verified post-closing. It’s a simple solution that avoids unnecessary delays.
Myth #3: Sellers Have to Pay VA Buyer’s Closing Costs
This is where many sellers hesitate — but it’s based on outdated information.
Here’s the actual breakdown:
VA buyers can pay for most normal closing costs, like title, appraisal, credit reports, and recording fees.
The VA limits certain lender fees (like doc prep or processing fees) to prevent overcharging, not to shift the cost to sellers.
If a VA buyer asks for closing cost assistance, it’s a negotiation point, not a VA mandate.
In fact, FHA and conventional buyers also frequently ask for seller credits. There's nothing unique or risky about a VA buyer making the same request.
VA Buyers Are Strong Buyers
Let’s rewrite the narrative:
They’re pre-approved
They’ve earned access to one of the most stable financing programs in the country
They often have reliable income and strong credit profiles
If you're a listing agent, don't let fear of VA myths stop a great offer from moving forward. And if you're a seller, know that accepting a VA loan doesn’t mean you’re on the hook for extra costs or a delayed closing.
Expert Quote from Amber Jones:
"VA buyers aren't just qualified, they're overqualified in many cases. With the right lender and a clear understanding of the process, these transactions are smooth, fair, and incredibly rewarding."
Final Thoughts for Veterans and Service Members
If you're a veteran, don’t let outdated myths stop you from using your hard-earned benefit. With no down payment, no mortgage insurance, and competitive rates, the VA loan is one of the best tools available for homeownership.
But choosing the right lender is key.
Work with someone who knows the VA process inside and out, ensures quick appraisal ordering, supports clean communication, and can structure your offer to compete in any market.
FAQ: VA Loan Myths and Misconceptions
1. Do VA loans really take longer to close?
Not necessarily. With an experienced lender, a VA loan can close in the same timeframe as conventional or FHA financing.
2. Are VA buyers allowed to pay for their own termite inspection?
Yes. As of June 2022, veterans can pay for the inspection and any related repairs if customary in that area.
3. Will the VA appraisal delay the sale?
Only if the home has safety or livability issues. Minor repairs can often be resolved with a repair escrow holdback.
4. Are sellers forced to pay a VA buyer's closing costs?
No. Any seller concessions are part of standard negotiation and not required by the VA.
5. Can VA buyers make competitive offers in a hot market?
Absolutely. Many have strong financial profiles and zero-down financing, giving them greater flexibility.
Ready to Talk VA Loan Strategy?
Whether you're a veteran buyer with questions or a seller trying to evaluate a VA offer, I’m here to help. Book a 15-minute call with me and let’s talk about your situation and next steps.
👉www.loansbyamberjones.com/book-a-call
If you found this helpful, please share it with a friend, and most importantly — thank a vet for their service.
