Busting VA Mortgage Myths

Busting the Myths of VA Loans

Are you eligible for a VA home loan?  Do you know the rules regarding VA Loans?

VA loans are a fantastic benefit for eligible veterans, active-duty service members, certain members of the National Guard and Reserves as well as their families.

Sadly, there are so many myths surrounding VA loans that cause confusion for Vets and their families. Getting the information you need can make all the difference between a great mortgage experience and a terrible one.

Let's dive in and debunk a few of these to get you on the right path regarding your VA Eligibility!

MYTHS

VA Loans Take Too Long to Process

FALSE

What's the RealityWhile VA loans may have a few additional steps, such as obtaining a Certificate of Eligibility (COE), they often close as quickly as conventional loans. Working with a knowledgeable lender can streamline the process. I consistently can close VA Loans in less than 14 days.

You Can Only Use a VA Loan Once

FALSE

The Truth is Veterans can use their VA loan benefit multiple times, as long as they pay off the previous loan or have remaining entitlement. The benefit can be restored for future use.

VA Loans Are Only for First-Time Homebuyers

FALSE

VA loans are available to eligible veterans and service members regardless of whether they are first-time or repeat homebuyers.

VA Loans Require Perfect Credit

FALSE

The reality is while a good credit score can help secure better terms, VA loans are known for being more flexible with credit requirements compared to conventional loans.  VA loans like other government loans have more flexible credit criteria regarding credit score, bankruptcy and foreclosure seasoning.

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VA Appraisals Are Too Strict

MISLEADING

VA appraisals are designed to ensure the property meets minimum property requirements for safety, soundness, and sanitation. These standards are in place to protect the buyer. While yes we have to order the appraisal directly through the VA, they are not much different than any other appraisal.  

VA Loans Have Higher Interest Rates

FALSE (NO WAY)

VA loans offer extremely competitive interest rates, in most cases, they are lower than conventional rates, due to the government guarantee reducing the lender's risk.  In addition, you can take advantage of better rates with lower credit scores compared to conventional loans.

VA Loans Require a Large Down Payment

FALSE (ABSOLUTELY NOT)

One of the biggest advantages of a VA loan is that it typically requires little to no down payment, making it easier for veterans to purchase a home without significant upfront costs. While down payment can vary, the majority of Veterans are getting their homes with no money down.

All Veterans Are Automatically Eligible

MISLEADING

Your eligibility depends on service requirements, and veterans need to obtain a Certificate of Eligibility (COE) to prove their entitlement.  Many vets are eligible, but there are some exceptions so it is important to speak to a lender or have your COE in hand.

You Can’t Use a VA Loan for a Fixer-Upper

FALSE

The VA has a renovation loan to purchase and renovate a property to allow for Vets, while standard VA loans are for homes ready to move in, the VA offers other options for houses that leave a little TLC.

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Misinformation is a horrible thing, understanding the truth about the VA loan programs can help veterans and service members make informed decisions.  My job is to coach you and other service members through the mortgage process. If you have more questions about VA loans or need further clarification, feel free to ask, I am here to create the best game plan for you and your family.