Possibly, although not yet. In most cases, the refusal of the seller to offer VA financing stems from the listing agent making possible false comments to the seller, or creating a cost fear for the seller, stating “…it will cost you more if the buyer uses their VA eligibility…” or say “it will require you to make certain repairs…”

While it is true that with VA loans, the seller might incur additional costs that are not required on FHA or Fannie Mae loans. And it is also true that the VA appraisal might require certain items fixed for the loan to be approved, versus a BINSR request which is negotiable.

Which in and of themselves, might cost the seller some money versus other financing that possibly would not.

BUT, this is a Veteran, a person who represents our country and probably put their life on the line to defend the country. They deserve every benefit we can offer.

Sometimes, the VA appraiser notes that the roof is deficient, or the stove has a bad burner, which could result in the seller being required to repair or replace. However, VA has an appeals process which often takes a day or two whereby the loan officer could appeal that request for the benefit of the veteran trying to buy the property. If the appeal is successful, that benefits all parties involved.

The problem is twofold. Many veteran groups rally the cause by stating that a seller’s refusal to allow VA financing should be a violation of Fair Housing rules and statutes. Right now, under both the Federal laws and the REALTOR Code of Ethics, Veterans are not a protected class, but the groundswell of energy is pushing that forward.

To this author, this could mostly be solved if Congress offered legislation to strip away all the overlays on VA loans, and make them look, feel, act and cost the same as FHA and FNMA loans. With purchase contracts in most states, any buyer could reject a home if the stove had a non-functional burner, or the house had a bad roof.

And if Congress acts and makes Veterans a protected class under the Federal law, and NAR added Veterans to our Code of Ethics, those will go a long way to provide the much-needed protection and caring of the people who deserve the respect and protection of all Americans.
If you agree, please contact our Senators

Mark Kelly  https://www.kelly.senate.gov/contact/contact-form/
(602) 671-7901

Kyrsten Sinema  https://www.sinema.senate.gov/contact-kyrsten
602-598-7327