What Sellers Need to Know About VA Loans in 2026
VA loans can be seller-friendly when appraisal access is smooth, the home is safe-to-occupy, and the contract is organized around timing and credits. Most delays come from repair scheduling, unclear credit labeling, or late disclosures—not from the buyer using VA financing. For the full seller concessions breakdown, use our VA seller concessions guide.
VA appraisal isn’t a full inspection
- It’s a valuation plus a baseline safety screen.
- Access + utilities on = fewer delays.
- Be ready to support value with comps (Tidewater).
MPR items are usually predictable
- Peeling paint, roof leaks, unsafe wiring, missing handrails, non-working heat.
- Fixing obvious hazards early reduces renegotiation leverage.
Funding fee requests are negotiable
- Sellers are not required to pay it.
- Confirm exemption early; it often changes the whole conversation.
Assumptions can be a marketing advantage
- Great in high-rate markets, but adds steps.
- Release of Liability is non-negotiable protection.
How to Evaluate a VA Offer as a Seller (Without Guessing)
VA-backed buyers can be competitive. As a seller, your job is to validate the ability to close, keep access and repairs on schedule, and structure credits clearly so settlement doesn’t get messy. Start with the VA home loan program overview for the official program baseline.
| Offer Element | VA Offer | Conventional Offer | Cash Offer | What the Seller Should Check |
|---|---|---|---|---|
| Proof of Ability to Close | Pre-approval + COE confirmation (ideally already pulled), verified income/assets | Pre-approval + down payment and reserves documentation | Proof of funds and liquidity timing | Strength of documentation, not just the label on the offer |
| Appraisal Risk | VA appraisal sets reasonable value and may require safety repairs | Appraisal focuses on value; condition issues often come via inspection | No lender appraisal required, but buyers may still request one | Plan for value support and clear access to avoid preventable delays |
| Property Condition | Must meet Minimum Property Requirements before closing | Condition is negotiable unless lender flags major issues | Negotiable based on buyer preference | Fix obvious hazards early to reduce renegotiation leverage |
| Seller Credits | Credits can be negotiated; classification matters at closing | Credits are contract-based, fewer program-specific constraints | Credits are contract-based and often simpler | Itemize credits so they land in the correct bucket at settlement |
| Closing Timeline | Often similar to conventional when access and repairs are managed | Depends on lender workload + appraisal/inspection timing | Can be fast; delays still happen with title/inspections/funds | Track appraisal, repairs, disclosures, and wire timing like a project plan |
Seller-ready checklist (day one)
- Request a full pre-approval (not prequalification) and confirm the lender has verified income/assets and pulled the COE if possible.
- Align appraisal access, inspections, and potential repair windows to the proposed close date immediately.
- Negotiate credits with intent: decide whether you prefer price adjustments, paying standard costs, or targeted extras.
VA Escape Clause: practical seller takeaway
VA contracts often include buyer protections tied to appraisal value. If the Notice of Value (NOV) comes in low, expect a value conversation. Prep comps early, keep access smooth, and avoid last-minute credit changes that create disclosure delays.
VA Appraisal: What It Actually Tests (and How Tidewater Works)
A VA appraisal is a valuation plus a safety screen, not a full inspection. For sellers, it mainly affects value support and whether basic hazards must be corrected before closing. If the appraiser anticipates a low value, Tidewater can create a short window to submit stronger comps before the NOV is finalized.
Make appraisal day frictionless
- Provide clear lockbox/entry instructions, tenant notice if needed, and an unobstructed path to the attic/crawlspace and electrical panel.
- Keep utilities on so the appraiser can verify heat, water, and basic functionality.
- Have your agent ready with recent comps and documented upgrades in case Tidewater is triggered.
Reference: VA handbook: appraisal process & Notice of Value.
Minimum Property Requirements (MPRs): What Delays Closing and How to Prep
MPRs focus on safety, soundness, and sanitation—not cosmetic upgrades. When an item is flagged, the loan typically can’t close until repairs are completed and verified. Small repairs completed early are almost always cheaper than rushed repairs completed late.
Common MPR items that trigger repairs
- Peeling paint (especially pre-1978).
- Active roof leaks or obvious water intrusion.
- Non-working heat and essential safety hazards (electrical/plumbing issues).
- Missing safety items like handrails on steep stairs or exposed wiring.
- Water damage or mold-like conditions that suggest health/structural concerns.
- Drainage or pest issues when visible or market-standard inspections apply.
Seller mindset
The VA isn’t asking for a remodel—it’s asking for a safe-to-occupy home. If the property would pass a typical “safe, sound, sanitary” standard, VA issues are usually manageable.
Reference: VA handbook: Minimum Property Requirements.
Prevent Closing Delays: Treat the Calendar Like a Critical Path
Most VA closing delays are scheduling problems: appraisal ordering, repair completion, reinspection timing, disclosure delivery, and wire/recording cutoffs. Tight calendars can backfire if disclosures or repairs slip.
A practical seller-ready timeline (simplified)
- Week 1: appraisal ordered; underwriting begins; seller provides access and disclosures.
- Week 2–3: appraisal/NOV delivered; if “subject to,” repairs start immediately.
- Week 3–4: reinspection (if needed), final conditions cleared, closing scheduled around bank and county cutoffs.
Timing pitfalls that push closing
- Closing Disclosure waiting period: buyers generally must receive the Closing Disclosure at least three business days before signing.
- Repairs & reinspections: repairs often add more time than underwriting—treat them as critical-path tasks.
- Wire/recording cutoffs: late-day closings can create a “dry closing” where signing happens but funds/keys move later.
Reference: CFPB: Closing Disclosure waiting period explained.
VA Loan Assumptions: Release of Liability and Entitlement Basics
If your VA loan is assumed, protect yourself with a Release of Liability and, when possible, substitution of entitlement. Assumptions can be a real listing advantage when rates are higher—but only when executed carefully.
Seller protections to insist on
- Release of Liability: written confirmation you are not responsible after transfer.
- Entitlement clarity: ask whether substitution of entitlement applies (especially if the buyer is a Veteran).
- Timeline planning: assumptions can add steps—set expectations and deadlines early.
Reference: VA: Release of Liability for assumed loans.
Funding Fee Requests: How Sellers Negotiate Cleanly
Sellers are never required to pay the VA funding fee unless they agree in the contract. The fee can be meaningful, but many buyers can finance it—and some are exempt. Clarity early reduces renegotiation later.
Negotiation checklist
- Ask early whether the buyer is funding-fee exempt and request written lender confirmation.
- Compare net proceeds across options: pay it, reduce price, or structure credits differently.
- Remember: the buyer can often finance the funding fee—seller credits are not the only solution.
Reference: VA: Funding fee and closing costs.
Optional: Seller Credit Structure Quick Check
Use this to separate seller-paid standard costs from buyer-specific extras and sanity-check your credit structure against a common VA concession guideline. If you need the full breakdown of what counts and examples, use the dedicated VA seller concessions page.
1. Enter your deal numbers
Concession-type extras (buyer-specific “extras”)
Examples: funding fee payment, points/buydowns, debt payoffs, certain prepaids, and non-realty allowances. For a detailed “what counts” list and examples, use the seller concessions guide.
Limitations
This is a planning tool based on your inputs only. The NOV and the lender’s final categorization determine what’s counted and what’s treated separately on the Closing Disclosure. If your structure is tight, confirm lender treatment in writing and use the full seller concessions guide.
2. Results summary
Add purchase price and/or NOV to compute a cap estimate and see how your entered extras compare.
Key details used
- Basis used: —
- Standard closing costs (entered): —
- Total seller-paid (entered): —
| Concession-type extra | Amount |
|---|---|
| Funding fee paid by seller | — |
| Points / temporary buydown | — |
| Debt/judgment payoff | — |
| Lease buyout / relocation | — |
| Prepaid taxes/insurance | — |
| Other concession-type extras | — |
| Total extras | — |
Helpful reference: VA.gov funding fee & closing costs.
Seller FAQs for VA Loans in 2026
These are the questions sellers ask most often when a VA-financed offer comes in.
1) Do VA loans take longer to close than conventional loans?
Not necessarily. Many VA purchases close on standard timelines when appraisal ordering is prompt, access is smooth, and the home is MPR-ready. Delays usually come from repairs, reinspections, or late paperwork—similar to other financed deals.
2) What does the VA Escape Clause mean for sellers?
The VA Escape Clause is buyer-protective language tied to appraisal value. If the NOV comes in below contract price, expect a value conversation. Seller takeaway: prep comps, keep access smooth, and avoid late contract changes that create disclosure delays.
3) Is the VA appraisal the same as a home inspection?
No. The VA appraisal is primarily for value plus baseline safety/habitability. A home inspection is separate and usually more detailed about condition, systems, and future maintenance.
4) What repairs most often cause VA appraisal conditions?
Common triggers include peeling paint (especially pre-1978), active roof leaks, missing/unsafe handrails, non-working heat, electrical hazards, and water intrusion. Addressing obvious hazards early reduces reinspection delays and renegotiation leverage.
5) What is Tidewater, and what should a seller do if it’s triggered?
Tidewater is a VA appraisal process step used when value may come in low. It creates a short window to submit stronger comps before the NOV is finalized. Sellers should respond quickly through their agent with recent comps and documented upgrades.
6) Can a seller pay the buyer’s VA funding fee?
Yes, sellers can agree to pay the funding fee, but it’s not required. First confirm whether the buyer is exempt; if not, compare options like targeted credits, a price adjustment, or having the buyer finance the fee into the loan amount.
7) Are VA loans assumable, and what should sellers protect?
Many VA loans are assumable with servicer/VA approval and buyer qualification. Sellers should pursue a written Release of Liability and discuss entitlement substitution (when applicable) so liability and VA entitlement are handled properly after closing.
8) What causes VA closing delays most often, and how do sellers prevent them?
The biggest delays are usually scheduling: appraisal ordering, repairs, reinspections, disclosure delivery, and wire/recording cutoffs. Sellers prevent delays by providing smooth access, treating repairs as critical path items, and avoiding last-minute contract changes.
9) Do seller-paid closing costs count toward the VA concession cap?
Many standard closing costs can be paid as part of negotiations, and certain buyer-specific extras are treated separately under VA rules. Itemize credits so escrow/title can classify them cleanly, and use the seller concessions guide for a detailed breakdown of what counts.
10) What’s the best way to evaluate a VA offer as a seller?
Verify preapproval strength, timeline realism, and repair readiness. Then focus on organization—access, disclosures, and how credits are structured—so the deal stays clean through appraisal and closing.
References Used
Primary references used:
- VA: Housing assistance and home loans overview
- VA: Funding fee and closing costs
- VA handbook: Appraisal process and Notice of Value
- VA handbook: Minimum Property Requirements
- VA: Release of Liability for assumed loans
- CFPB: Closing Disclosure waiting period explained
- Internal: VA seller concessions guide (canonical)
Levi Rodgers is the Founder of VA Loan Network, a leading resource for Veteran homebuyer education. A Retired Green Beret and Broker-Owner of LRG Realty in San Antonio, Levi leverages his military discipline and real-world real estate expertise to provide Veterans with expert loan advice, guidance, and trusted financial leadership.
