If you’re using a VA loan (or planning to), this is one of those things that can completely change your buying power—and most people have no idea it exists.
Did you know VA loans are the only loans where you can negotiate for the seller to actually pay off some of your debt?
If you’d rather watch or listen to the full breakdown, here’s the video:
https://www.youtube.com/watch?v=uf6lREsN5FE
Let me walk you through how this works—and why it’s such a powerful (and underused) strategy.
The Biggest Misconception About VA Loans
Most people—buyers and even some agents—believe this:
“With a VA loan, the seller can only pay up to 4%.”
That’s not actually true.
Here’s the real breakdown:
- Sellers can pay 100% of your closing costs
- PLUS up to 4% in additional concessions
And that extra 4%?
That’s where things get really interesting.
What Are “VA Allowables”?
That additional 4% is called VA allowables, and it can be used for things most people don’t even think about.
One of the biggest uses?
👉 Paying off your debt
Real Example: How This Helped a Buyer Qualify
I had a client relocating for a new construction home around $500,000.
On paper, it didn’t work.
Their debt-to-income ratio was too high, which meant:
- They couldn’t qualify
- The deal was dead
Unless we got creative.
So we structured the offer like this:
- Seller pays all closing costs
- Seller pays an additional $20,000 toward debt payoff
And that changed everything.
Why This Strategy Works
When we used that $20K to:
- Pay off a car
- Reduce credit card balances
It lowered their monthly obligations.
Which lowered their debt-to-income ratio.
Which made them qualify for the house.
Same buyer. Same income.
Completely different outcome.
This Is Where Most People Get It Wrong
Most people look at a scenario like this and think:
“Their debt is too high—they can’t buy.”
But with VA loans, the better question is:
👉 Can we restructure the deal to make it work?
Because sometimes the issue isn’t income…
It’s how the deal is put together.
Why This Only Works With VA Loans
This strategy is exclusive to VA loans.
You cannot do this with:
- Conventional
- FHA
- USDA
- Jumbo
Only VA allows:
- Full closing costs covered
- PLUS additional concessions used toward debt
That’s a huge advantage—and one most people don’t fully leverage.
Market Matters: When This Works Best
This strategy works best in:
- Buyer’s markets
- New construction deals
- Situations where sellers are motivated
In ultra-competitive seller markets?
It’s tougher—but not impossible.
Sometimes sellers are more willing to:
- Contribute to costs
- Help a veteran buyer
Even if they won’t drop the price.
There’s Also a Psychological Angle
Here’s something interesting:
Some sellers would rather:
- Give money to the buyer (especially a veteran)
than - Lower the price of the home
Same financial impact.
Different emotional response.
And that can make deals happen.
Why the Right Team Matters
This is where having the right lender and agent matters.
Because if they don’t know this strategy exists…
You miss it entirely.
And I’ve seen it happen a lot.
The agents who understand this?
They see opportunity everywhere—and they help more veterans get into homes.
Bottom Line
VA loans are one of the most powerful benefits available—but only if you use them correctly.
If you’re struggling to qualify or trying to make numbers work:
👉 It might not be about changing the house
👉 It might be about changing the structure of the deal
