Why sellers say no to VA loans is a frequent question I am asked in a sellers market. When the market favors sellers, they may have several offers to choose from. Many sellers reject VA loans because they hear that they take longer to close or that appraisals may be difficult. As you prepare to list your home, you may consider which kinds of loans you are willing to accept when you review offers to purchase your home. While a great program for the buyer, they can initially be a bit off-putting for sellers. There are a couple of VA loan requirements for sellers to keep in mind to make the process a smooth one.
Both FHA and VA loans have been around for years, and they’re backed by solid guarantees from the Federal Housing Administration and the Veterans Administration, respectively. Yet in a recent survey by the National Association of Realtors, only 30% of sellers say they’d likely accept an offer from a buyer who’s planning to use an FHA or VA loan. By contrast, 89% of sellers would likely accept an offer from a buyer with a conventional mortgage.