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What Sellers in Madison, WI Should Know About VA Loans

  • John Reuter
  • May 21
  • 4 min read

For Sale sign in front of a house with text "What SELLERS should know about VA Loans" over puzzle pieces labeled MYTH and FACTS. The Veteran Realtor Podcast logo.

VA Loans Aren’t Just for Buyers—Sellers Benefit Too

First, let’s cover the basics. A VA loan is a home loan guaranteed by the U.S. Department of Veterans Affairs. It allows eligible Veterans, Active Duty Service Members, and some surviving spouses to purchase homes with benefits like no down payment and competitive (and usually lower) interest rates.

But here’s the deal: the seller doesn’t have to be a veteran. If your buyer is using a VA loan, all it means for you is that the financing works a little differently—but that can actually work in your favor.



Busting the Biggest Myths About VA Loans in Madison, WI

1. Myth: VA Loans Are Harder to Close

Truth: VA loans close at the same rate as conventional loans. According to Mike Schroeder, Senior Loan Officer at Guaranteed Rate, VA loans actually have a higher closing success rate than conventional loans. With the right lender and a knowledgeable agent (like your guy, John Reuter), these deals move smoothly.



2. Myth: Sellers Have to Pay All the Closing Costs

Truth: VA rules limit what fees veterans can pay, but that doesn’t mean sellers cover everything. Costs like title insurance, commissions, and standard seller fees are typical in any transaction. VA buyers can pay for things that are normal like home inspections and insurance, just like conventional buyers. The VA simply ensures the Veteran isn’t charged an enormous fee above and beyond what is normal. This protects the buyer—not burdens the seller.



3. Myth: VA Appraisals Are Tougher

Truth: VA appraisals check two things:

  • Fair Market Value

  • Minimum Property Requirements (MPRs)

While the VA does require the home to be "safe, sound, and sanitary," the standards aren’t unreasonable. Think of it as a quality check to make sure your home isn’t hiding major issues. Plus, VA appraisers are local professionals who understand Madison’s market.(See below for a little video on VA appraisal)



Key Advantages of Accepting a VA Loan Offer

  • Strong Buyer Pool: Madison is home to thousands of veterans, active-duty military, and federal employees. Accepting VA offers opens your listing to more qualified buyers.

  • No Worry About Down Payment Funds: Since VA buyers often don’t need a down payment, they might be more financially stable than buyers draining savings for 20% down.

  • Backed by the Federal Government: VA loans are government-backed, reducing the lender’s risk and keeping deals competitive and stable.



What to Expect in the VA Loan Process as a Seller

1. Accepting the Offer

You review and accept the offer just like any other offer.Your agent will ensure you’re protected on timelines and contingencies.



2. VA Appraisal

The buyer’s lender orders a VA appraisal to confirm value and property condition. This typically happens within 10 days of accepting the offer.(See the video below for more details on VA appraisals)






3. Home Inspection (Optional but Common)

Most VA buyers will also order a home inspection. Remember, this isn’t required by the VA, but it’s smart for any buyer.(The market will dictate what contingencies the buyer is going to have, and this is negotiated within the offer)



4. Negotiations (If Needed)

If the appraisal comes in low or the inspection reveals issues, you may enter negotiations.Your agent will help you navigate solutions—whether that’s repairs, price adjustments, or sticking to your terms.



5. Closing Day

Once everything checks out, you move to closing just like any other transaction.You hand over the keys, the buyer’s VA loan funds the purchase, and you get paid.



Local Tip for Madison Home Sellers


Did you know Madison is home to thousands of VA-eligible buyers, from Truax Field Air National Guard Base to Veterans working at the VA Hospital or UW-Madison?By understanding how VA loans work, you position yourself to tap into a dedicated, qualified buyer pool that’s actively looking for homes in Madison, Sun Prairie, and Dane County.



Final Thought: Don’t Let VA Loan Myths Hold You Back

Selling to a VA buyer can be a win-win when you understand the process. With the right agent by your side—especially one who’s walked the military path himself—you’ll navigate every step with confidence.



Let’s Talk About Your Madison Home Sale

If you have more questions about VA buyers or the selling process in Madison, WI, I’m here to help. With over 250 homes bought and sold by veterans, we know a thing or two when it comes to Veterans and homes 🙂. Let’s connect and make your sale a smooth mission success.



Check out our YouTube Channel for more benefits and resources, and of course don't forget to subscribe!

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🎖️ John Reuter, USAF (Ret.)🎙️ The Veteran Realtor Podcast | Helping Veterans Navigate Benefits, Resources, and Housing

📩 For inquiries or guest requests:📧 Email: john@integrityhomeswi.com📞 Call/Text: 608-669-4226

Real Broker, LLC


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