A VA loan is a special type of loan backed by the government and is only available to veterans of the US military and surviving relatives. The down payment required is usually 1-3% of the total loan amount, and the interest rates are generally lower relative to conventional loans.
Some sellers will not entertain offers with VA financing because they have to pay more in closing costs, the time frames for approval can be longer than for conventional loans, and sometimes VA loans do not appraise as well as FHA or conventional financing.
VA loans are not designed to finance fixer-uppers. All homes financed by VA loans must be move-in ready and in line with the VA’s Minimum Property Requirements (MPRs). MPRs can make sellers fear a home will not meet VA standards and a deal will fall through. Accordingly, some sellers (particularly those selling a fixer-upper) bypass VA purchase offers altogether.