What Is a VA Loan?

If you're a Veteran you may know that a VA loan is a benefit you're entitled to. But many sellers may not have heard of the loan program. A VA loan features a variety of advantages compared with conventional loans, including limited fees and as little as a $0 down payment. This is a big advantage in giving a Veteran the ability purchase a home without the burden of a down payment—a game changer in today’s real estate market where home prices are so high.

In addition to requiring little to no cash upfront, VA loans come with lower mortgage interest rates and more forgiving credit criteria. Lenders are, however, a little more strict on property condition as they must be careful to mitigate risk when extending VA loans, and that means making sure the home is safe—and a sound investment. Unlike with conventional mortgages, VA buyers can’t waive the home appraisal. The appraisal has two parts: the typical valuation to assess market value and a high-level look at some key health, safety, and marketability conditions, known as the Minimum Property Requirements. If an appraisal notes MPR-related issues, the homeowner or the veteran can pay to make those repairs and keep the deal moving forward. 

As a home seller you should speak to your agent to get the specifics of any offer - and to be sure to understand how a VA loan works. A Veteran will be sure to thank you!