Selling Home to someone with a VA Loan

Sold a rental to a purchaser with a VA loan and had no issues. Lots of misconceptions. The buyer paid closing costs and it wasn’t this slow, arduous process like you hear from time to time.

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Has anyone gone through this process?

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Yes. VA loans have a higher closing rate than Conventional.

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I am selling a 17 year old house to someone with a VA loan.

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You'll be fine. That's not an old home.

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The standard inspection went well but next the VA inspector (who is also the appraiser for the loan) is to come out before we can go to the Act of Sale.

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It's not a VA inspector. It's a VA appraiser. I've seen 2 call outs ever and totaled probably $150 in fixes.

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How picky is the VA inspector / appraiser? What can I expect? I am not coming off the price in this market.

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One of the beautiful things with VA is you can appeal the numbers prior to getting it if they can't find the comps. It's called Tidewater Initiative and Reconsideration of Value. If the buyers agent/buyer get that notice you can submit comps for review. You don't get to do this out of the gate with other loan types. You don't get to see what comps he/she has already used. A bit blind on that front so the ones you're appealing with may already be included on the report.

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I am not coming off the price in this market.

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Since they require 0% down on VA, that usually means the veterans likely has cash on hand to close unless they are flat broke.

I've bought 2 houses using VA loans. Both houses were 10 years old at the time. There was no VA inspector, just a VA appraiser. Neither house had any "call outs" that needed to be fixed. The appraisers are the same appraisers everyone uses, so you might get an appraisal that is right on, low or high. One of mine appraised right on the dot, and the other appraised way low, so we had to offer some cash to get the deal done.

*One more thing, once a house has a VA appraisal on it, it is stuck with that appraisal for the next 6 months for any VA loans. So basically, if it appraises real low and skunks the deal, make sure your next buyer has a conventional loan.

I’m a realtor, and I deal with these from time to time.

The important thing about selling your home with VA involved is have repairs factored in.

You may think your house is great, and it might be. Except the pop off valve on your HWH isn’t done to code, or you need a rail on that step you’ve never really noticed.

Takes longer on appraisals too.

If you’re selling it FSBO, it’s all on you. If you’re using a realtor and you had multiple offers and you picked the VA one either you didn’t listen to your realtor when they advised against it, or they’re not very good IMO.

This is not me saying VA loans are bad, they’re not. They can just come with headaches that cause deals to fall through which cost you time and money.

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. Expect a termite inspection as part of the inspection in the state of Louisiana.

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I’d expect that as a requirement for any mortgage.

I had one delay the closing of my house I sold 7 years ago.

I had to rip up brand new flagstone patio to modify drainage. MF of a Va appraiser wasn’t happy with how the stones were replaced. Then I had to re-lay about 20 large stones myself late on a Sunday afternoon. This was after spending all weekend replacing “rotted” hardiplank….which of course doesn’t rot….and a bunch of other nonsensical fixes.

The va appraiser also appraised the house $17k lower than the buyers offer. We had relatively low leverage and went ahead because it was still well over list, one of our only offers and we already owned the house we were moving into.

On the whole it worked out well for us but a headache for sure.

I did this in 2011. Zero issues.