VA loans are a strong offer when the file is well prepared. Most seller concerns — “VA appraisals are nitpicky,” “the seller has to pay everything” — are outdated or overstated. VA's Minimum Property Requirements focus on safety, soundness, and sanitation, not cosmetics; sellers may pay closing costs and concessions within VA limits but aren't required to; and the Tidewater process gives agents a chance to support value before a low appraisal is finalized.
Five VA loan myths sellers still believe
When a listing agent hesitates about a VA offer, it's usually because of something they heard years ago. Here's what to say.
Myth: “VA appraisals kill deals.”
VA appraisals check value and the Minimum Property Requirements: is the home safe, structurally sound, and sanitary? Chipped paint on a newer home, dated finishes, or worn carpet aren't MPR issues. Real problems — a leaking roof, exposed wiring, no working heat — would concern most buyers and lenders anyway.
Myth: “The seller has to pay all the closing costs.”
Not true. VA limits certain fees the Veteran can be charged, which sometimes shifts those specific fees to another party, but sellers aren't required to pay the buyer's closing costs. Seller contributions and concessions are negotiable, within VA limits, just like any other offer term.
Myth: “Zero down means a weak buyer.”
VA underwriting includes a residual income test — a check that the household has enough left each month after major expenses. Zero down reflects an earned benefit, not a thin file. A pre-approved VA buyer has had credit, income, and entitlement reviewed.
Myth: “A termite inspection is always required and the seller must pay.”
VA requires a wood-destroying insect inspection only in certain areas and situations, and who pays is subject to VA fee rules and negotiation. Matthew can confirm whether it applies to the property.
Note on buyer-broker fees: VA has updated its guidance on whether Veterans may pay buyer-broker fees; Matthew will confirm the current rule for your transaction.
Writing a strong VA offer
The goal is to show the listing side that this buyer is prepared and that the VA-specific steps are already handled.
- Lead with a real pre-approval. Include a pre-approval letter that reflects reviewed credit, income, and assets — and confirms the COE is in hand and entitlement supports the price. Matthew can tailor the letter to the offer amount.
- Offer to talk. Put Matthew's number in the offer package and invite the listing agent to call. A two-minute conversation often settles concerns a letter can't.
- Keep concessions reasonable. Asking the seller for closing-cost help is common, but a lean request can make a VA offer compete with conventional offers. Matthew can show the buyer's cash-to-close under different concession scenarios.
- Explain the VA amendment. VA purchase contracts include the VA escape clause (amendatory clause): if the appraisal comes in below the price, the buyer isn't obligated to complete the purchase or lose earnest money — but can choose to proceed and cover the difference. Presenting this plainly shows the listing side how the buyer plans to handle value.
- Address repairs upfront. If the home has an obvious MPR concern (a missing handrail, a broken window), note in the offer how it will be handled so it isn't a surprise after the appraisal.
- Set realistic dates. Build in time for the VA appraisal and any required repairs. Matthew will give you a realistic schedule based on the property and local appraisal conditions.
Have a VA buyer or a listing with VA interest? Matthew will answer your questions directly and keep you updated through closing.
Talk with MatthewAppraisal timing, Tidewater, and reconsideration of value
On a VA loan, the lender doesn't pick the appraiser. VA assigns a VA-approved appraiser through its system, and the appraiser issues a report that leads to VA's Notice of Value (NOV). Timing depends on appraiser availability in the area, so ordering promptly after the contract is signed matters.
Tidewater. Under VA's Tidewater initiative, when the appraiser expects the value to come in below the contract price, they generally notify the lender's point of contact before finalizing the report. That opens a short window (typically two business days) to submit additional comparable sales or information. Agents can help a lot here: have comps ready, especially recent sales, pending sales, and details about upgrades that may not be visible in public records.
Reconsideration of value (ROV). After the NOV is issued, the lender may request a reconsideration of value if there's strong supporting data — comparable sales the appraiser didn't use, or factual errors in the report. An ROV isn't guaranteed to change the value, but a well-documented request gives it the best chance.
Handling MPR repair requests
If the appraiser notes an MPR item, the NOV will usually list required repairs. Common examples include peeling paint on older homes (because of lead-based paint concerns), missing handrails, broken windows, roof issues, inoperable heating, and safety hazards like exposed wiring.
- Who does the repairs? Required repairs are generally completed by the seller before closing, then verified by a reinspection or documentation. The buyer generally can't do the repair work on a home they don't own yet.
- Who pays? That's negotiable. Some buyers offer to adjust other terms; some sellers simply fix a small item to keep the deal moving.
- What about weather-related items? In some cases, an escrow holdback may be possible for items that can't be completed because of weather, subject to lender and VA guidelines.
- What about bigger problems? If repairs are extensive, a renovation loan may be a better fit — Matthew can talk through alternatives, including options covered on FHA 203(k) Info.
Tip for listing agents: walking the home with an MPR eye before listing — peeling paint, handrails, broken glass, working utilities — makes it easier to accept VA offers with confidence.
How Matthew supports agents
Agents deal with enough call centers. With Matthew, you talk to the licensed mortgage broker working the file.
Clear updates
Regular status updates at the milestones that matter: COE, appraisal order, NOV, repairs, conditions, and clear to close.
Pre-approval letters
Letters matched to the offer amount, with the VA-specific details listing agents want to see.
Answers for the other side
Matthew is glad to take a call from a listing agent or seller to explain VA rules, the escape clause, or repairs.
Matthew is licensed in multiple states. Tell Matthew where your buyer is purchasing and he'll confirm he can help there. For quick references, point buyers to the VA loan FAQ, VA loan requirements, or VA vs. FHA vs. USDA.
Nothing of value is exchanged for referrals. Agents and buyers choose their own service providers.
Frequently asked questions
Can a VA buyer compete with conventional offers?
Often, yes — especially with a solid pre-approval, a COE in hand, reasonable concession requests, and a clear plan for appraisal and repairs. Matthew is glad to talk with the listing agent directly.
Does a VA offer require the seller to pay closing costs?
No. VA limits certain fees the Veteran can pay, but seller contributions are negotiable and subject to VA limits.
What happens if the VA appraisal is below the contract price?
Under Tidewater, the appraiser generally reaches out before finalizing a low value so supporting sales can be submitted. After the Notice of Value, an ROV may be requested. If the value stands, the parties can renegotiate, the buyer can pay the difference, or the buyer can use the VA escape clause.
Can my buyer use a VA loan on a condo?
Generally, if the condominium project is VA-approved. Check the project early; if it isn't approved, it may be possible to request approval, but that adds steps.
Can my buyer use VA again if they already own a home with a VA loan?
Possibly, using remaining entitlement, as long as they'll occupy the new home. County limits can affect the zero-down amount in that case. See VA entitlement.
Agents: talk with Matthew about a VA buyer
Tell Matthew a little about the property and your plans. He'll follow up by phone or email — no obligation.
Prefer to start now? Start your pre-approval · Schedule a call · (512) 952-1125
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