How come some sellers don't accept VA Loan Buyers?

[Dwight Porter]

Greetings, 

I'm new to real estate and I found my first deal on a duplex in the Houston Texas area. I was going to house hack using a VA loan. I visited the property and made a strong offer. A few days later my realtor called me saying the seller is not accepting VA loan offers.

I wanted to know if any other VA loan buyers have dealt with this? What are some possible reasons sellers stay away from VA loan Buyers? Is there anything a Buyer can do to make the seller more comfortable with accepting a VA loan offer? Any best practices? I look forward to your responses!

Thanks!

[Bill F.]

@Dwight Porter

The rule of thumb hierarchy of offers is 1. all cash 2. Conventional 20% down loan. 3. Specialty loans like VA, USDA, FHA.

The requirements for loans in the third category, namely inspection criteria, can be more stringent than the other two. This can lead some sellers in some areas, for better or worse, to not accept offers that have those particular financing in hopes of avoiding a situation where the home is tied up for 30-60 days and at the 11th hour the financing falls through. Another option is they know the house won't meet the VA standards.

Right, wrong, or indifferent, that's the way of the world. If I were you, I'd try to offer more earnest money, but that puts you at risk. After that, let them know you like the property and will check back in 60 days. Make another offer around Feb if the property is still on the market.

Good Luck.