We don't see a lot of VA loans in Durham, NC but a few. Once in a while for various reasons after a contract is written they do not go to closing. Now we all know there are expenses that happen in the transaction.
Some are ordered and paid for by the seller and some by the buyer. Recently we had one not close and the buyer had ordered the pest inspection. The seller is obligated to pay that fee because the buyer can not. In this case the buyer wanted his money back for the pest inspection because the seller is obligated to pay. The only problem is the buyer forgot that there was no closing and the seller was no longer oblgated to pay. Non Closings have a habit of being ugly but if you are familiar with your contracts they become less so.
There is a form called the FHA/VA Financing Addendum. It says that a seller must pay well/water, septic/sewer and/or wood destroying insect inspections at the sellers expense. It also says Seller shall pay AT SETTLEMENT buyers closing costs up to a certain amount. The seller was off the hook on this one.