5. Wait for the market to cool

Your seller will almost always find your VA loan offer more attractive if you are able to waive some or all contingencies. And that might be enough to overcome any prejudice against VA loans.

Contingencies are usually written into purchase offers. They list the events that must be fulfilled in order for the deal to proceed. And they’re an important safety net. Because, if you back out of a home purchase on grounds that aren’t covered by a contingency, you’re likely to lose your earnest money deposit.

So don’t waive contingencies unless you’re certain you can proceed with your purchase no matter what. And talk it through with your buyer’s agent before you sign anything.

Any prejudice over VA loans is only magnified by the current hot real estate market. Sellers are typically getting multiple offers, often above the asking price, and have the luxury of picking and choosing. If they’ve only an inkling of doubt about one, they move on to another.

But the market’s bound to cool at some point. And, faced only with your VA loan offer, a seller will be much more likely to take it seriously.

We’re not suggesting you wait. Both home prices and mortgage rates may well have risen by the time the market cools that much. And, by then, you may be priced out of the sort of home you can currently afford.

So our best advice would be to persevere and take each failed offer on the chin. But, if you’re in a good position to wait and don’t mind doing so, you might have better luck with your VA loan offer.

6. Use a different loan program

Some buyers with VA loans are so frustrated by repeated failed purchase offers that they consider switching to a different sort of mortgage. But don’t bank on that solving the problem.

At the time this was written, people with all sorts of mortgages were having to write many offers, simply because competition among homebuyers was so great. And even cash buyers with zero contingencies were sometimes missing out on deals.

You’ll likely need a 3% down payment and a credit score of 620. But then you could get a conventional mortgage from Fannie Mae or Freddie Mac.

However, your mortgage rate would likely be higher than with a VA loan. And only those with VA loans or 20% down payments escape continuing mortgage insurance premiums. So your monthly payments will likely be significantly higher without a VA loan.

Of course, you can quickly refinance your Fannie or Freddie loan into a VA one. But then you’ll be paying closing costs on two transactions rather are online installment loans legal in Kansas than one. And with those averaging 2– 5% of the home’s value, you’re probably looking at several thousand dollars. So, this is a last–resort option only for the truly desperate.

Common VA loan myths, busted

If you want to understand why a seller rejected your VA loan offer, and hopefully prevent another rejection, it helps to understand why sellers and agents might be prejudiced against these loans.

Here are four common myths about VA loans in today’s market – and why they’re not true. Armed with this knowledge, you might have a better chance at getting your next VA loan offer accepted.

Myth 1: VA loans are less likely to close than other types of mortgages

One myth about VA loans is that they’re harder to close than other mortgage types. This could be scary for sellers who are worried about the sale falling through if the borrower can’t get funding.

In reality, though, VA loans close at nearly the same rate as conventional loans – and at a slightly better rate than FHA mortgages.