FAQ

Does the seller have to pay for any of the buyer’s closing costs on a VA transaction?

No: The seller is not required to pay any additional closing costs on a VA loan.

Is a termite inspection always required on a VA loan?

Yes: A termite inspection will be required and is typically paid by the seller, but it can be paid by the VA buyer. If any insect infestation is noted in the report, it must be cured. The cost of curing can be paid by anyone involved in the transaction. The use of Form NMPA-33 with Box A checked is the preferred termite clearance. There are scenarios where Merchants can close a VA loan without the termite clearance in hand. Contact us for more details.

Does the VA loan take longer than conventional to close?

No: A VA loan can close in 2 weeks in most locales.

Are the VA appraisers tougher than conventional on the property?

No: VA appraisers will use the same process as a conventional appraiser. They will look for structural or safety related items, but in general VA appraisers are thorough, but fair in their assessments. VA appraisers have more latitude to do their jobs since the only person reviewing their work is the VA underwriter. On a Conventional appraisal, the appraisal is reviewed by the Appraisal Management Company and then by the Underwriter, so conventional appraisers often tend to be more conservative due to the added scrutiny.

Can a VA buyer waive contingencies on their offer?

Yes: VA buyers can waive both their loan and appraisal contingency in their offer to purchase. The VA Amendatory clause will still give them an “out” in the event of a low appraisal.

Can a Non-VA buyer assume a VA loan?

Yes: A buyer that does not have a VA benefit can assume a VA home loan, but the VA benefit that is in use on the property cannot be restored for that Veteran until the loan is paid. For this reason, we do not typically recommend this unless there is no chance the seller will ever use their VA benefit again down the road.

Should I accept a VA offer?

Yes, with zero hesitation. VA loans offer the most predictable outcomes of all loan types.