Sellers are required to pay for any repairs a VA appraiser stipulates are necessary in order to bring a property’s condition up to VA standards. They are also required to pay for any necessary termite damage repairs on both FHA and VA purchases, as cited by the termite inspection. These costs are the sellers' responsibility, and I’d consider them similar to the repairs other sellers make on conventional loans when home inspectors point out items that are in need of repair. You cannot raise the sales price or be compensated for these costs, VA and FHA are trying to guarantee their buyers purchase sound homes. If a seller has no interest in fixing any deficiencies in his home, the best course of action is usually an “as is” sale, which would appeal to cash buyers, rather than those obtaining a mortgage.
The seller doesn’t ever have to pay anything. Any seller paid closing costs for the buyer is a negotiated item as part of the purchase agreement.
If there are any work orders (required repairs) to the home in order for it to meet underwriting guidelines, the seller will need to make those repairs. Again, factor that into the purchase price negotiations if that is an issue.
Finally, programs like VA do not allow the lender to pay a few minor standard buyer closing costs. It can again be negotiated into the purchase agreement for the seller to pay them.
The bottom line is the seller doesn’t ever need to pay anything if they don’t want to – but it may effect the success of the transaction.