By Mike Lentz | The Mike Lentz Team - Keller Williams Realty
The biggest VA loan myths say these loans get denied more often, close less reliably, and cost sellers more. National 2025 data shows the opposite. VA purchase applications had the lowest denial rate of any major loan type, at 8.2%. With more homes for sale in many markets, eligible buyers have more room to negotiate than they did a few years ago.
If you are a veteran or active-duty service member who has been hoping to buy a home, you may have more going for you than you realize.
VA loans already carry strong benefits. More homes are for sale now, and buyers have more room to negotiate in many markets. Those benefits can go further as a result.
You may also have heard that buying with a VA loan is harder, slower, or puts you at a disadvantage. A lot of what people believe about VA loans is not true.
What a VA loan gives eligible buyers
Nearly 4 million service members and veterans have an active VA home loan. The Department of Veterans Affairs (VA) reports more than 343,000 homes were bought with VA loan benefits in its most recent reported fiscal year.
For eligible borrowers, VA loans carry advantages that make buying more affordable:
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No down payment required for many eligible borrowers.
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No monthly mortgage insurance, even with no down payment.
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Competitive mortgage rates that can help lower monthly payments.
These benefits help in any market. VA loan usage has grown for the last two years in a row. They apply the same way whether you are buying in Camden, Burlington, Gloucester, Salem, or Cumberland County.
Why sellers once pushed back on VA offers
A few years ago, homes drew multiple offers and buyers competed for nearly every listing. VA buyers sometimes had a harder time getting an offer accepted.
A 2021 survey from the National Association of Realtors (NAR) found 89% of sellers were likely to accept an offer from a buyer using a conventional loan. Only 30% were likely to accept one using an FHA or VA loan.
Some sellers worried that VA financing would take longer, be harder to close, and cost them more in repairs and fees. Those worries came from VA loan myths, not from how the loans perform.
Four VA loan myths, checked against 2025 data
A white paper from Vetted VA used 2025 national mortgage data to test the most common claims.
Myth #1: VA loans get denied more often than other loans.
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The reality: VA loans have the lowest denial rate. Just 8.2% of VA purchase applications were denied. The rate was 15.0% for conventional loans, 12.8% for FHA loans, and 12.5% for USDA loans.
Myth #2: VA financing is less reliable.
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The reality: 90% of VA loan applications that reached underwriting made it to closing. For conventional loans, the figure was 81%.
Myth #3: VA appraisals take longer.
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The reality: VA appraisals typically take 7 to 10 business days. That is similar to conventional and FHA loans.
Myth #4: Sellers have to pay all the closing costs for VA buyers.
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The reality: VA buyers can pay many standard closing costs themselves. Buyers and sellers can also negotiate which eligible costs the seller covers.
Why VA loan myths matter less in this market
There are more homes for sale and fewer buyers competing in many areas. Sellers may be more open to different financing than they were a few years ago. You can find out if you are in a buyer’s or seller’s market in the county where you are shopping.
Getting your offer accepted is only the first step. Depending on the house and the local market, you may also be able to negotiate a lower price, ask for repairs, or request help with closing costs.
VA guidelines allow sellers to cover the buyer’s normal closing costs, plus concessions of up to 4% of the home’s value.
Put those pieces together. You may be able to buy with no down payment, avoid mortgage insurance, and negotiate help with other buying expenses.
That could mean keeping thousands of dollars in savings instead of spending them upfront. You would have more room in your budget after you get the keys.
What to do next
If you are active duty, have served, or know someone who has, talk with a local agent and a trusted VA-approved lender. They can show you what you qualify for.
If you want to talk through what this means for your situation, schedule a quick call and we’ll walk through it together.
For the full picture in your county, see our county market reports for Camden, Burlington, Gloucester, Salem, and Cumberland counties.
