VA loans are one of the most valuable benefits available to eligible service members, veterans, and qualifying surviving spouses. Backed by the U.S. Department of Veterans Affairs, these loans make homeownership more accessible by offering favorable terms like no down payment and no private mortgage insurance (PMI).
In this Redfin guide, we’ll debunk the most common VA loan myths so buyers can use their benefits with confidence, and sellers can avoid passing up strong offers due to misinformation.
Key takeaways
VA loans are not riskier or slower than conventional loans; many close just as fast.
No down payment doesn’t mean “no qualifications.” Borrowers still need to meet credit and income standards.
Sellers are not required to pay all closing costs for VA buyers.
VA loans can be used multiple times, not just once.
Myth 1: VA loans are risky for sellers
Reality: VA loans are backed by the federal government, which actually makes them less risky for lenders, not more. Sellers sometimes assume that VA buyers are “less qualified” because they aren’t putting money down, but that’s not accurate. VA borrowers must meet credit, income, and property requirements just like any other buyer.
Additionally, VA appraisals ensure the property meets Minimum Property Requirements (MPRs) to protect both the buyer and the lender, not to complicate the sale. When issues do arise, they can often be resolved through repairs or negotiated concessions, just like in a conventional transaction.
Sellers who avoid VA offers may overlook serious, well-qualified buyers with strong financing and government backing.
Myth 2: VA loans take too long to close
Reality: VA loans once had a reputation for slow closings decades ago, but that’s no longer the case. Today, many close in 30–45 days, similar to conventional loans.
The key is working with experienced lenders and real estate agents who understand the VA process. Delays usually happen when paperwork is incomplete or when the lender isn’t experienced—not because of the VA program itself..VA loans can move as efficiently as any other loan type when handled correctly.
Myth 3: Sellers have to pay all closing costs
Reality: While the VA limits certain fees the buyer can pay, it doesn’t require sellers to cover everything. VA Buyers can pay many typical closing costs themselves, and sellers are only responsible for certain non-allowable fees, which are relatively limited.
Buyers can also negotiate for seller credits just like with any other loan type. Accepting a VA offer doesn’t mean taking on major extra costs – in most cases, seller expenses are similar to those in a conventional sale..
Myth 4: VA loans are only for first-time buyers
Reality: VA loan benefits can be used multiple times, as long as entitlement is restored. Veterans who have used their benefit before can often restore it after selling or refinancing, and some can even hold two VA loans at once using partial entitlement.
VA loans are designed to serve eligible buyers throughout their lives, not just for a one-time purchase. That flexibility helps military families relocate or upgrade homes as their needs change.
Myth 5: VA buyers can’t compete in hot markets
Reality: VA buyers can absolutely compete in multiple-offer situations. A strong offer package, preapproval, competitive price, and flexible terms can be just as compelling as a conventional offer.
VA buyers may also make earnest money deposits, cover their own closing costs, and shorten contingencies where appropriate. With an experienced agent advocating for them, VA offers can stand out in even the most competitive markets
Myth 6: VA appraisals are too strict
Reality: VA appraisals are often misunderstood. The Minimum Property Requirements are designed to ensure the home is safe, sound, and sanitary—not to flag cosmetic flaws or delay sales unnecessarily.
In many cases, VA appraisals are comparable to FHA standards and not significantly more restrictive than conventional appraisals. If issues arise, the appraiser often allows time for repairs or reconsideration of value.
Myth 7: VA loans cost taxpayers money
Reality: VA loans are not funded by taxpayer dollars. Instead, they’re backed by a government guarantee that reduces lender risk. Borrowers typically pay a one-time VA funding fee, which helps offset program costs and ensures it remains self-sustaining for future generations of service members and veterans..
Myth 8: VA loans don’t require any financial investment
Reality: While VA loans often require no down payment, buyers are still responsible for closing costs, the funding fee (unless exempt), and other transaction expenses. Some choose to make a down payment to reduce their funding fee or monthly payments.
VA loans make homeownership more accessible, but they still require financial responsibility and careful budgeting from the buyer.
Why debunking these myths matters
Misunderstandings about VA loans can discourage qualified buyers from using their hard-earned benefits and cause sellers to overlook strong offers. By addressing these myths early, real estate agents, buyers, and sellers can streamline the transaction, build trust, and create more opportunities on both sides.
VA loan myth frequently asked questions
1. Can I use a VA loan more than once?
Yes. You can restore your entitlement after paying off a previous VA loan or, in some cases, use remaining entitlement to buy again.
2. Do VA loans have lower interest rates?
Often, yes. VA loans typically offer competitive interest rates compared to conventional loans because of the government guarantee.
3. Can sellers refuse VA loan offers?
Legally, sellers can choose which offer to accept, but rejecting solely based on the loan type may limit your buyer pool. It’s best to evaluate the offer as a whole.
4. Does a VA loan make my offer weaker?
Not at all. With proper preparation, a VA buyer’s offer can be just as strong as any other financing type.
