*Please note: Any questions regarding Legal Hotline Spotlights should be submitted via the Virginia REALTORS^® Legal Hotline. Our attorneys are unable to respond to questions through our comments section.

Q: “My seller does not want to deal with the requirements for a VA loan. Can she advertise that she will not consider offers that are using that particular type of loan, or would this be a Fair Housing violation?”

A: DPOR has issued clear guidance that the Source of Funds protection in Fair Housing law is not meant to prevent sellers from choosing the offer that they deem the best, including based on the type of financing used. Simply choosing not to accept a VA loan would also likely not be in and of itself a violation of the Military Status protected class, as the issue is not the potential buyer’s military service but rather the type of loan. However, it is safest to not advertise that in something like the MLS agent notes and, instead, allow the seller to consider each offer on its own merits. 

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