Are VA Loans Harder To Close?

Here are several common misconceptions about VA loans that need to be addressed:

• Length of Closing: A frequent objection is that VA loans take longer to close than conventional loans. This isn’t true; they typically close in about the same timeframe.

• VA Appraisal Deadlines: This one is actually an advantage of the VA loan, not a drawback. VA sets an appraisal timeliness standard for every market, built from customary timeframes for comparable conventional appraisals in that same area, and the appraiser must make contact to schedule the appointment within two business days of receiving the assignment. Appraisers who fail to meet VA’s expectations for customer service, accuracy and timeliness can be removed from VA’s fee appraiser panel. Conventional appraisals carry no requirement like that. The standard itself varies by area, so nobody can promise you a specific number of days, but the accountability behind it is real. See the VA Lender’s Handbook, Chapter 10, Topics 6 and 7.

• VA Property Condition Standards: Many people fear that the property condition standards for VA loans are excessively stringent. The actual bar is that the home must be safe, structurally sound and sanitary. The handbook is direct about the rest: an appraisal is not a home inspection, and the appraiser should not recommend repairs of cosmetic items, items involving minor deferred maintenance, or normal wear and tear. In practice, only minor items usually need attention, such as adding a handrail.

• Termite Inspection Costs: A wood destroying insect report is required on the Notice of Value whenever the property sits in a “very heavy” or “moderate to heavy” zone on the termite infestation probability map, and that covers most of the country, so plan on one in most transactions. It is not a deal killer. It is an inexpensive report, usually under $100, and it is there to protect the veteran from buying a home with hidden termite damage. The guidelines on who pays also changed. Under VA Circular 26-22-11, dated June 15, 2022, VA authorizes veterans to be charged the wood destroying pest inspection fee, so anyone in the deal can cover it: the seller, the realtor, the lender or the veteran. VA still encourages the veteran to negotiate that cost with the seller.

Questions veterans ask about closing with a VA loan

What fails a VA appraisal?

Health, safety, and structural problems: a leaking roof, exposed wiring, no working heat, or peeling paint in an older home. The appraiser is not a home inspector and should not flag cosmetic issues, minor deferred maintenance, or normal wear and tear. Most condition calls are small fixes, like adding a handrail, not deal killers.

How long does a VA loan take to close?

About the same as a conventional loan. The appraisal step even has a VA timeliness standard behind it: the appraiser must make contact to schedule within two business days of the assignment, and appraisers who miss VA expectations can be removed from the panel. Delays usually come from the property, the title work, or a lender overlay, not from the VA program itself.

How often do VA loans fall through?

There is no reliable program-wide fall-through rate, and anyone quoting one is guessing. When a VA purchase does fall apart, the cause is usually the appraised value, a property condition, or a financing overlay, not the fact that it is a VA loan. If your file fell through on credit, manual underwriting, a collections plan, or the credit rules in Chapter 4 may change the outcome at a different lender.

What if a seller picks a conventional offer over my VA offer?

It happens, and it is usually about the myths, not your file. A strong pre-approval, a clean offer, and a listing agent who understands that VA appraisals and timelines are competitive can change the answer. If you lost a home this way, tell me what happened before you assume VA financing was the problem.

What if I was denied a VA loan?

A denial from one lender is often an overlay, not a VA verdict. Get a second opinion on a denied file, and if credit was the reason, read how bad credit works on a VA loan before you reapply. For the step-by-step version, read what to do if your VA loan is denied.