YES you do have have money in escrow for VA loan. It applies towards your closing costs

National Featured Realtor and Consultant, Texas Mortgage Loan Officer, Credit Repair Lecturer
Follow me on Twitter: http://twitter.com/Lynn911
Lynn911

The more earnest money is offered by the buyer, the more serious the seller feels the buyer is and the least likely the buyer will back out of the deal. Earnest money is not deposited into a trust account until the contract is ratified. If the contract is not ratified (offer excepted by both parties), the earnest money check is returned to the buyer. Earnest money has nothing to do with the type of loan.

The deposit or earnest money has nothing to do with the type of financing. It is given for the purpose of holding the house off the market. if the buyer cancels in bad faith the seller usually gets to keep the deposit.