A VA loan works the same as most other home purchases, with a buyer making a written offer to purchase a home under specific conditions, and then going through an approval process with a lender. The key difference is that the Department of Veterans Affairs requires that all homes purchased through this program meet certain habitability requirements — a home inspector and appraiser will confirm the home is in good working order.

This step may sometimes cause delays if repairs are needed after inspection. Issues at the home do not necessarily mean the buyer cannot use the VA loan, just that repairs will need to be done before the purchase can be completed. The VA recently started offering a VA loan for homes that need renovation on a limited basis.