VA Buyers Are Strong Buyers: Debunking Common VA Loan Myths
Why VA Loan Buyers Deserve Strong Consideration in Today's Housing Market
When a seller receives multiple offers, misconceptions about financing can sometimes influence the decision-making process. One of the most common myths in real estate is that VA buyers are weaker borrowers or that VA loans are more difficult to close.
The reality is quite the opposite.
Veterans, active-duty service members, and eligible surviving spouses continue to use the VA home loan program successfully to purchase homes across the country. According to the Department of Veterans Affairs, more than 528,000 VA loans were guaranteed during Fiscal Year 2025, representing over $206 billion in financing for eligible borrowers.
As Fiscal Year 2026 continues, VA lending remains strong, helping military families achieve homeownership while utilizing one of the most valuable benefits earned through service.
Myth #1: VA Buyers Are Weaker Borrowers
Some sellers and even real estate professionals mistakenly assume that a buyer using a VA loan is less qualified than a buyer using conventional financing.
In reality, VA borrowers must still meet lender qualification standards, including requirements related to:
Credit history
Income verification
Employment stability
Debt-to-income ratios
Asset documentation
Many Veterans have stable careers, consistent income, and strong financial profiles. The fact that they choose VA financing often reflects smart use of a benefit they earned—not a lack of financial strength.
A well-qualified VA buyer can be just as competitive as any conventional borrower.
Myth #2: VA Appraisals Are Too Difficult
Another common misconception is that VA appraisals kill deals.
This belief has persisted for years, but it misunderstands the purpose of the VA appraisal process.
A VA appraisal is designed to:
Protect the Veteran's investment
Confirm the property meets VA Minimum Property Requirements (MPRs)
Establish market value for the loan
Help ensure the Veteran is not overpaying for the home
The appraisal process is not intended to create obstacles. Instead, it provides additional consumer protections for military homebuyers.
Understanding the VA Tidewater Initiative
One of the most valuable features of the VA appraisal process is the Tidewater Initiative.
If a VA appraiser believes the property's value may come in below the agreed-upon purchase price, the appraiser can invoke Tidewater before issuing the final appraisal report.
When Tidewater is activated, the parties involved have an opportunity to provide:
Additional comparable sales
Market data
Supporting evidence for the contract price
VA guidance generally allows two business days to submit additional information for consideration.
This process gives buyers, agents, and lenders an opportunity to support value before the appraisal becomes final.
That isn't a disadvantage.
It's an additional safeguard built into the VA loan process.
What Is a VA Reconsideration of Value (ROV)?
Even after the appraisal is completed, Veterans may have another avenue available if the final value comes in lower than expected.
This process is known as a Reconsideration of Value (ROV).
A Reconsideration of Value allows the Veteran to request an additional review when there is evidence that:
Better comparable sales exist
Relevant market data was not considered
Appraisal adjustments may warrant review
Additional information could support a higher value
During an ROV review, VA staff examines the appraisal, supporting documentation, and available market data. If the evidence supports a change, the VA can issue an amended Notice of Value.
Again, this is not a hurdle.
It's another layer of protection available to Veteran homebuyers.
Why Sellers and Real Estate Agents Should Feel Confident About VA Offers
Understanding the facts about VA financing can help sellers make informed decisions when evaluating offers.
Key Takeaways About VA Loans
✔ VA financing is not a last-resort loan program.
✔ VA buyers can be highly qualified borrowers.
✔ VA appraisals are designed to protect Veterans—not derail transactions.
✔ The Tidewater process allows additional market data to be reviewed before an appraisal is finalized.
✔ A Reconsideration of Value provides another opportunity to review value concerns when appropriate.
✔ A well-prepared VA buyer can be a strong, competitive homebuyer.
The Bottom Line: VA Financing Is a Benefit, Not a Weakness
The VA home loan program has helped millions of Veterans achieve homeownership. Yet outdated misconceptions continue to influence some real estate transactions.
The truth is that VA buyers often bring strong qualifications, professional guidance, and unique appraisal protections that can actually strengthen a transaction.
When evaluating offers, sellers and agents should focus on the overall strength of the buyer—not outdated assumptions about VA financing.
A VA loan is not a weakness in an offer.
It is a benefit earned through service.
Know the facts. Serve Veterans well.
Jim Yarrington
Senior Mortgage Loan Officer
First State Bank Mortgage
NMLS #454680
👉 Apply online
📞 Call or text: 913-915-1855
All loans subject to approval. Equal Housing Lender.