Why VA Loans Are Worth the Wait

VA loans are often the best home financing option for veteran homebuyers, offering zero down payment, no private mortgage insurance (PMI), and flexible credit requirements. These unique financing perks underscore why VA loans remain a great deal in an unpredictable market, especially in times of economic uncertainty. Some veterans also keep an eye on how rising mortgage rates are impacting veteran homebuyers, but VA loans typically offer advantages that help mitigate higher rate concerns.

For example, on a $350,000 home, you could skip the large upfront outlay required by many conventional loans. Instead of putting down $70,000 (20% of $350,000), you might put down $0 with a VA loan. Monthly payments can also be lower thanks to the absence of PMI and competitive interest rates.

According to the VA’s official website, a substantial number of veterans—over 40% in some recent years—rely on these loans to become homeowners. Simply put, VA loans are designed to honor your service by making the path to homeownership as accessible as possible.

Still, the VA is detail-oriented. The steps and requirements that make VA loans unique can sometimes cause closing delays, though many borrowers find the entire process manageable. In fact, how long it takes to close on a VA loan can be comparable to other mortgage types, provided you plan ahead.

Rest assured, these delays don’t diminish the value of your entitlement, which can be as high as $806,500 (county-dependent). In many cases, veterans who faced minor hiccups say the process was still worth it for the long-term savings and peace of mind.

Common Hiccups That Slow Things Down

The main culprits behind VA loan delays include incomplete paperwork, low credit scores, appraisal or property issues, and changes in employment or duty status. With some foresight and preparation, each of these hurdles can be overcome.

While the VA loan process can be straightforward, certain “quirks” can stall your timeline. Below, we break down the most common obstacles and offer strategies to prevent or minimize each one.

Missing or Incomplete Paperwork

Missing documents—such as your DD-214, W-2s, or pay stubs—can easily add an extra one to two weeks to your loan approval. Get organized early to save time.

What’s the Problem?

To verify your eligibility and financial readiness, lenders need specific documentation. For VA loans, this typically includes:

• Your DD-214 (Certificate of Release or Discharge from Active Duty)
• Recent pay stubs (usually covering at least two months)
• Bank statements (two months)
• Tax returns (two years)

If even one of these documents is missing, inaccurate, or incomplete, your application comes to a screeching halt. Veterans sometimes misplace older paperwork, and retrieving it can take days or even weeks.

How to Fix It:

Start gathering your documentation before you officially begin the loan process. Make a checklist—one missing W-2 can delay your closing date by a week or more. If you realize something is missing, contact your lender or the appropriate government agency right away. Creating a well-organized folder (physical or digital) can help you rapidly provide anything your lender might request.

Credit Score Issues

Although the VA doesn’t set a strict minimum credit score, lenders usually require at least a 620. If your score is lower, you might face extra scrutiny and possible delays.

The Holdup:

While the Department of Veterans Affairs has no official minimum score requirement, private lenders who issue VA loans often set their own benchmarks—commonly around 620. If your score falls below this range, approval can be delayed while you work to boost it. Late payments, high credit card balances, or recent large purchases (like a new car) can also increase your debt-to-income ratio (DTI) and complicate the process.

What to Do:

Obtain a free credit report from services like AnnualCreditReport.com or your bank’s credit monitoring tool. If your score is below 620, focus on reducing high-interest debt, paying off small balances, and making sure all accounts are current. Even a modest improvement—from a 610 to a 640—can be the difference between a fast approval and a lengthy delay.

Appraisal Delays

VA appraisals can take longer than conventional ones due to strict property guidelines. Scheduling, repairs, or re-inspections might add two to six weeks.

Why It’s a Snag:

The VA employs Minimum Property Requirements (MPRs) to ensure the home is safe, structurally sound, and sanitary. Issues like peeling paint, a leaky roof, or inadequate heating can trigger the need for repairs before the loan can close. Also, VA-certified appraisers may have busier schedules in certain areas, potentially pushing back your closing date. Some veterans use a VA home inspection checklist approach alongside the official appraisal to identify issues early.

How to Avoid It:

Consider having a conversation with your real estate agent about VA-friendly properties that already meet common MPRs. For example, if you’re buying a $350,000 home built in the 1970s with visible structural issues, expect some additional time for repairs. Being proactive—such as asking the seller to fix obvious issues before the official appraisal—can speed up the process significantly.

Low Appraisal Value

If the appraised value comes in lower than your offer, you might have to negotiate with the seller or pay the difference, causing delays of one to three weeks.

The Issue:

Let’s say you offered $350,000, but the VA appraiser determines the home is worth only $340,000. The lender will not approve a loan for more than the appraised value, which forces you to either come up with the difference in cash or renegotiate the purchase price. This back-and-forth can delay closing by a couple of weeks.

Your Move:

Before making an offer, review comparable home sales in the area to avoid overbidding. If the appraisal is still low, consider asking the seller to split the difference or lower the price. Many sellers are open to compromise if they believe the deal will ultimately go through.

Debt-to-Income Ratio Trouble

A high DTI—often over 41%—can require extra paperwork or debt reduction to secure approval, which may add two to four weeks.

What’s Going On?

The VA is relatively lenient when it comes to debt-to-income ratios, but private lenders will still analyze your monthly obligations. If your income is $4,000 per month and your current debts total $1,800, you sit at a 45% DTI, which might raise red flags. Student loans, car loans, or significant credit card debt can push you beyond acceptable levels.

How to Fix It:

Paying down high balances or refinancing large debts can quickly lower your DTI. You can also include any extra income (like part-time work or a service-related stipend) to show a healthier monthly cash flow. The goal is to get your DTI near or below 41% for a smoother approval process. Otherwise, some borrowers face a VA loan denial if the ratio remains too high.

Employment Gaps or Changes

Lenders usually want to see at least two years of steady employment. Recent job changes or gaps can lead to requests for additional verification, adding a few more weeks.

The Delay:

If you transitioned from active duty to a civilian job three months ago, your lender might require proof of a stable new salary and job security. They could ask for an employment letter, additional pay stubs, or further explanations of your work history. Also, make sure any new role aligns with VA loan occupancy requirements if it involves relocation or remote work.

What to Do:

If possible, try to maintain stable employment for at least six months before applying for a mortgage. For military-related relocations (PCS), gather your orders and any relevant documentation to verify your position. Transparency is key: the more information you provide upfront, the fewer follow-up questions and delays you’ll face.

Property Type Problems

Condos and manufactured homes have extra VA requirements; if the property isn’t VA-approved, you may face weeks of delay or need to switch properties.

Why It’s Tricky:

Certain property types—like condos, townhomes, and manufactured homes—must be on the VA-approved list. If your condo’s homeowners association (HOA) is not already certified, you either have to wait for approval or find a different property. Make sure the community is among the VA-approved condos before you invest time and money in the purchase.

How to Dodge It:

If you’re eyeing a condo, ask your lender or check the VA’s condo search tool to confirm it’s on the approved list. If not, your lender can request approval, but it might extend your timeline. A single-family home often has fewer complications, making it a faster route to closing. If you’re considering properties that need more work, you could also explore whether you can buy a fixer-upper with a VA loan.

Seller Resistance to VA Loans

Some sellers believe VA loans take longer or cost them more in fees, leading to hesitation or acceptance delays of 10-20 days.

The Holdup:

Misinformation about the VA loan process can cause sellers to question whether they should accept your offer. They might think they’ll pay more in closing costs or that the appraisal will be stricter. This skepticism can result in drawn-out negotiations or the seller initially rejecting your offer—often based on perceived disadvantages of VA loans that may not actually affect them.

What to Do:

Have your real estate agent explain that VA loans can close in 30-45 days, comparable to many conventional mortgages. Demonstrating your financial readiness (a solid credit score, pre-approval, earnest money) can also help the seller feel more confident about choosing your offer.

PCS or Deployment Timing

Military moves or deployments can disrupt the home buying timeline, often adding a few extra weeks as paperwork and orders are processed.

Why It Slows You:

If you receive PCS orders or deployment orders right in the middle of your mortgage application, you may need to pause the process until you have clear, updated documentation regarding your new duty station or your ability to occupy the home. Lenders generally want assurance that the property will be your primary residence if that’s part of the deal.

How to Handle It:

Try to schedule your home purchase around PCS timelines if possible. Gather your PCS orders early and share them with your lender to demonstrate where you’ll be stationed and how that affects your living situation. Communication is crucial; the more your lender knows, the faster they can adapt and process your paperwork.

Why Delays Aren’t the End

Most VA loan delays are solvable and often only push back closing by a few weeks. With the right approach, you can keep your dream of homeownership on track.

While delays are frustrating, they rarely mean you’ll lose your shot at the home you want. Usually, these issues revolve around minor tasks—like gathering an overlooked document, touching up the property to meet VA standards, or paying off a small credit card balance. With your $806,500 entitlement in 2025 (depending on location), investing a little time to address these issues is well worth the outcome of a favorable mortgage rate and no down payment requirement. Some veterans even combine grants with VA loans to manage out-of-pocket expenses if repairs or appraisal shortfalls arise.

How to Speed Up Your VA Loan

Be proactive. Organize your documents early, monitor your credit, choose VA-friendly homes, and maintain open communication with your lender and seller to keep your loan moving smoothly.

Below are tried-and-true tips from fellow veterans and real estate professionals:

• Organize Documents: Gather your DD-214, W-2s, tax returns, and pay stubs in a single place.
• Check Your Credit: Aim for 620 or higher—ideally above 640—to reduce lender scrutiny.
• Choose the Right Home: Seek properties in good condition to avoid extensive repairs.
• Communicate Early and Often: Keep in touch with your lender, seller, and real estate agent.
• Time Your PCS: If you’re expecting new orders, plan your loan application accordingly.
• Work with a VA-Savvy Agent: Look for real estate agents experienced in VA transactions.

Real Stories of VA Loan Delays

Many veterans encounter setbacks—like low credit or appraisal issues—but most still close, thanks to quick fixes and good communication.

Here are a few real-world examples from veteran homebuyers:

• The Missing W-2: A veteran buying a $350,000 home forgot to include an older W-2. It took 10 extra days to track it down, but once submitted, he closed smoothly.
• Credit Score Hurdle: Another veteran had a 610 score for a $280,000 property. He paid off $2,000 in credit card debt, raised his score to 640, and wrapped up the mortgage in about three extra weeks.
• Appraisal Repairs: A $310,000 home showed minor roof damage. The seller fixed it, delaying the process by nearly three weeks. After repairs, the loan was approved with no additional snags.
• PCS Pause: A family relocating for a Permanent Change of Station found a $330,000 home. They had to wait an extra 30 days for updated orders, but they still successfully closed.
• Overcoming Denial: One service member initially faced rejection due to high DTI, but improved finances and later learned how to appeal a VA loan denial, ultimately closing on a home without restarting the entire process.

These examples prove that although delays are common, they’re usually temporary setbacks. By staying flexible and prepared, you’ll likely come out on top.

Dodging Delays Like a Pro

Most delays occur early in the process—before underwriting is complete. Being organized, financially stable, and open with your lender can help you avoid hold-ups.

For many veteran homebuyers, the key is preparation. Start by pulling your credit report a few months before you plan to buy. Address any outstanding bills or inaccuracies. Find a real estate agent who knows the ins and outs of VA loans and can guide you toward VA-friendly listings. Have funds ready for potential repairs or appraisal discrepancies. The VA loan benefit is a powerful tool—treat it with the care and attention it deserves, and you’ll soon be moving into your new home.

Frequently Asked Questions

What could delay my VA loan application?

Missing documentation (like your DD-214 or pay stubs), low credit scores, appraisal complications, or timing issues related to PCS or deployment can all slow the process.

How do missing documents slow my VA loan?

Without complete paperwork, the lender can’t verify your eligibility or financial stability. This can add one to two weeks (or more) to your closing timeline.

Can a low credit score delay my VA loan?

Yes. If you fall below the lender’s typical minimum (often 620), you may need to improve your score, which can take several weeks to months.

Why do VA appraisals cause delays?

VA appraisers must confirm the home meets specific safety and habitability standards. If repairs are needed, closing may be delayed by the time it takes to fix issues and conduct re-inspections.

Q: What if my VA appraisal is too low?

A: You can negotiate with the seller to lower the price or pay the difference out of pocket. Both options typically involve some delay for discussions and paperwork.

How does high debt delay a VA loan?

If your DTI is too high (often above 41%), the lender may require you to pay down debt or provide more income documentation, adding extra steps.

Can a job change delay my VA loan?

Yes, especially if you have less than six months of employment at your new job. Lenders want stability and may request additional verification.

Do property types affect VA loan timing?

Properties like condos and manufactured homes may need extra certifications. If the condo association isn’t VA-approved, you could face additional steps or delays.

Can sellers delay my VA loan process?

Some sellers worry about VA-related costs and stricter appraisals. Educating them about the process and showing your financial readiness can help smooth things over.

How does a PCS impact my VA loan?

If PCS orders arrive mid-application, you might need to pause or adjust your paperwork. Planning around your move can help minimize disruptions.