I have a new client that is pre-approved for a VA loan.

I heard that any house he purchases must be "VA approved" in order to use the VA loan.

First question: Is this true?

Follow-up questions: If this is true, should I just ask each LA if their listing is "VA approved"?

If the LA doesn't know, how would I go about finding out or actually getting the house "VA approved"?

Thanks in advance to anybody who could shed some light on this matter for me.

I had this happen on my first transaction ever.

Here is what you need to do:
Is the home in a neighborhood? If so, you need to find out if the neighborhood is FHA/VA approved. Realistically, the neighborhood is probably FHA approved. VA will accept this.

Your first step will be to call your local FHA and VA office. Ask them if the neighborhood your client is looking at is approved. If they have an approval number, get it.

Usually, the VA inspector/appraiser will have access to the FHA/VA approval documents.

If the neighborhood is not FHA/VA approved, you may have to have an attorney do some paperwork and submit it to HUD for approval. Sometimes, if the home is not in a neighborhood, they will go through a simpler process. Give HUD at least 3 weeks in order to process it, since they are one of the worst government bureaucracies.

Bottom line: If there is ever been a FHA or VA loan in the neighborhood, you are most likely ok.

The govie appraisers are a P.I.T.A as well. They will go out of their way to find anything wrong, crack in the side walk, vents in garage if house was built after a certain date, etc. Then they will require the seller to put 2X the amount required for the repairs in a sepearate account.

Not exactly---
It is true that VA has some guidelines, and certain things they require, but generally they are not as strict as FHA. The house has to be in relatively good condition. If your client finds a house he wants, make the offer subject to a VA inspection. The VA appraiser usually will list some things that will have to be done before closing. Such as, handrails, flaking paint, etc. This is not the type of loan you would want to use for a house in very bad condition. I usually write in my offers something like "seller to pay for repairs up to $200 as required by VA; if required repairs are over that amount, then the buyer will do repairs, or this contract is void."
It is a negotiable thing. Look at the house, see if anything looks obviously wrong. On a VA loan, seller is required to pay for the termite inspection.
There are other VA foreclosed homes; some of which are VA approved for a VA loan, and the buyer can even be a non-veteran.
The listing agent will not know.
Talk to your clients's loan person, and maybe the VA appraiser.

Some more useful info for you:

ALLOWABLE CLOSING COSTS

1. Discount Points (Purchase or Refinance)
2. Loan Origination Fee (1% Max)
3. Appraisal Fee
4. Credit Report Fee
5. Title Insurance Fees
6. Recording Fees
7. Compliance Inspections
8. VA Funding Fee (May be Financed)
9. Pre-Paid Interest
10. Tax and Insurance Impounds

COSTS THAT A VETERAN MAY NOT PAY (Must be Paid by the Seller on a Purchase or by the Lender/Broker on a Refinance)

1. Escrow Fee or Sub-Escrow Fee
2. Administrative Fees
3. Document Preparation Fee
4. Underwriting Review Fee
5. Processing Fee
6. Wire Fee
7. Tax Service Fee
8. Notary Fee
9. City Transfer Taxes or Tax Stamp Fee

SPECIAL NOTES

• The Seller may pay ALL of the Veteran's Fees including both Non-Recurring and Recurring Closing Costs
• All of the Borrower's down payment and closing costs may be a gift from a relative.
• Seller concessions are limited to 4% of appraised value (not including closing costs.)

Awesome information everybody...thanks very much!

The home has to qualify in condition and zoning.
The appraiser will complete a "VC" sheet showing what needs to be completed for the financing.
FHA & VA have similar guidelines on acceptable condition of a dwelling.
Make sure you know what the $ amount of the Mandatory Sellers Costs are ahead of time and put that $ amount as a cap in your offer. There are some loan officers that will “pad” it if it isn’t caped. That way the Seller knows exactly what he is to pay for.

Oh, one other thing, the Home Inspector needs to know ahead of time that the home is going VA financing.

It's really not as difficult as it sounds. I do these all the time and they usually go well.

Actually they are quite easy as ky realtor states. It is like breathing, once you do it once you never forget.