Updated November 11, 2026
Short answer
VA backs a loan only up to the lower of the appraised value or the purchase price. If the appraisal is low, the price may need to be renegotiated, or the buyer may cover the difference.
VA's example
VA's example: preapproved for $450,000, contract at $400,000, appraisal at $375,000. The loan is capped at $375,000 (VA.gov). No-down-payment purchases also depend on the price not exceeding appraised value (VA.gov).
Talk it through
Buying in Tampa Bay? Krystal Crichlow with eXp Realty works with VA buyers. Anywhere else in the U.S., she can refer you to a VA-experienced local agent at no cost to you. Use the form to tell us where and when.
Disclosure: TheBayPros' owner is related to Krystal Crichlow (eXp Realty), who may be among the agents introduced to you. You can choose any agent you like. We are not a lender and do not make loans. General information from VA.gov; rules change, so confirm with VA and your lender.