You have two layers of protection: the deposit's due-diligence window and VA's federally required escape clause. A builder nervous about VA financing is usually one who does not see much of it. - The deposit. Builders typically require an upfront deposit to make the contract binding before the appraisal and inspections are done. That deposit is generally refundable during the due-diligence period, so an early problem does not mean forfeiting it. Read your specific contract for the exact contingency windows. - The appraisal. Every VA purchase includes the escape clause, mandated by federal regulation, and no buyer, seller, or lender can waive it. If the VA's notice of value comes in below the contract price, you are not obligated to close and can recover your earnest money. That protection exists independent of any appraisal contingency in the contract, and it covers exactly the risk this question worries about. - Low values get a second look. Under VA's Tidewater process, an appraiser who expects to come in below the sales price must notify the lender's point of contact before finalizing the appraisal and allow two business days for supporting sales data to be submitted, which the lender relays through the agents. A formal Reconsideration of Value can follow after that. So a builder asking for extra deposit money over VA-loan concerns is often a smaller or regional operation that does not realize how workable VA financing is. If you want a second set of eyes on the specifics before you sign, that is something we can do on a Roadmap conversation.