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Is there any reasons why a seller would not want to accept a VA loan from a mortgage lender?

I live in Indiana. I plan to apply for a VA loan through a mortgage lender who is VA approved and also is (Lapp) Lender Appraisal Program. I have heard that sellers sometimes don't want to deal with someone who is getting a VA loan. If this is true,what are the reasons as to why? Does the seller have to pay more for accepting VA loans..fees,points,etc...? Thank you. by Icehou_129_819 from Valparaiso, Indiana. Jan 28th 2013 Reply


Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 3,930 contributions

The #1 reason a seller doesn't want to accept a VA offer, is because an ignorant Real Estate Agent put the unrealistic fear into their head. Not only is it VA, but a lot of Realtors also have this attitude towards FHA loans. Both FHA and VA do require a minor "inspection" of the property, and this inspection "may" require the seller to complete some repairs before the house can be sold. Unless the home has some major repair issues, Real Estate agents fear of FHA or VA is completely unwarranted. www.VA-IRRRL-Loan-MN.com

Jan 29th 2013
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Eric Flores (eflore_387_431)
#34 ranked lender in Indiana - 1 contribution

Hello Icehou_129_189, I have found that the main reason VA buyers are pushed away is a lack of knowledge of the VA process. There are incorrect fears that the property conditions are too stringent or that it is more expensive for the seller. You have served your country and have earned a great benefit, so I suggest that you dont' turn away from it. Besides being a Loan Officer, I currently serve as a Captain in the Indiana Army National Guard, and spend a lot of time counseling veterans. Feel free to contact me to answer your questions.Eric R. FloresNMLS 149587Office 260-399-1685Cell 260-249-5922eflores@unmhq.com

Jan 28th 2013
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Linda Miller (Linda Miller)
#2 ranked lender in Utah - 566 contributions

I have never had that experience - however - any concerns about a VA loan might come from the real estate agent - as stated below - lack of knowledge about the VA process. There should be no concerns - these loans are not that much different than an FHA loan - a few different disclosures - that pertain specifically to the VA loan - but that's about it. A VA loan is a great loan with no money down. It is a benefit you earned with your service. Take full advantage of it. I would suggest that you contact one of the Lender 411 mortgage professionals in your area and get pre-approved. Good luck and thanks so much for your service.

Jan 28th 2013
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Steven Ceceri (CreativeFinancingOptionsGroup)
#36 ranked lender in Massachusetts - 723 contributions

Good Evening! Certain Listing Agents prepare their seller's in a way to help them avoid potential financing pitfalls that a buyer's financing may bring in to the situation. I have a few questions to ask offline, so if you want, please send me a message so I can help you figure this out. Thank you.

Jan 28th 2013
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Scott Swinford (scott@nwiloanguy.com)
#16 ranked lender in Indiana - 21 contributions

There are really no valid reasons why a seller would not want to accept a VA loan. While there are a couple fees that the veteran cannot pay for that would normally be paid for by the seller, it is no different than asking the seller for concessions for closing costs. As far as qualifying for the VA loan, an issue where the seller thought it could be denied last minute, it is no harder, and often times easier to get than another loan type.The only issue that I could see, and I'm really grasping at straws here, is that VA always requires a pest inspection that the seller usually pays for. Even if there was evidence of wood-eating insects, no matter the type of loan, the appraiser would typically note it and ask for an inspection anyway, so this really isn't a good reason to shun a buyer with a VA loan. Besides, as a veteran, you deserve it! I'm in Valpo, so if you have other questions, feel free to ask away!

Jan 28th 2013
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Michelle Curtis Loan Originator NMLS 401173 (EmbassyFundingLLC)
#78 ranked lender in Florida - 2,240 contributions

It is an old school way of thinking that a government loan brings added problems to a transaction. Years past this may have been true but it just isn't that way anymore.

Jan 29th 2013
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Larry Penilla (Larry Penilla)
#4 ranked lender in Indiana - 24 contributions

There are specific fees that cannot be paid by the veteran. Realtors and even lenders are not always clear on these. The VA home loan program is great -- and the best option for many veterans. However, it is not as common nor as conventional or FHA financing. Therefore it can be misunderstood. In my opinion, the lender and selling agent may have to properly educate the seller's/listing agent. Otherwise, if there are competing offers or the lender involved is < reputable your offer may be declined...Feel free to call if you need help with this. Larry Penilla of A&M Mortgage in Merrillville -- 219-765-1630.

Jan 29th 2013
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Gus Dahlgren (gdahlg_811_422)
#34 ranked lender in Michigan - 48 contributions

Larry is correct in what he said about the fees. There are some fees that cannot be paid by the Veteran and get passed along to the seller. I'm guessing this is why they don't wan't to participate with the VA loan. My company pays this fee for the Sellers so they would not have an excuse to participate if the buyer does their financing through Union National Mortgage. Call me for more details. 517-489-2440 www.gustheloanguy.com .

Jan 29th 2013
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