Myth 1: Veterans only have one chance to use their VA home loan benefit.
Fact: Veterans can use their benefit multiple time and throughout their life. Actually, there’s no limit and they can have more than 1 VA loan at the same time.
Myth 2: VA loans can only be used to buy a house.
Fact: VA loans can be used to refinance too-up to 100% of the homes value in some cases.
Myth 3: VA loans are small and only ideal for starter homes.
Fact: VA loans are widely available up to $1,500,000 or more!
Myth 4: VA loans take too long to process and Close
Fact: VA loans can close fast! Loan processing timeframes are similar as other loan types.
Myth 5: It's difficult to qualify for a government program.
Fact: In some ways - VA loans are EASIER to qualify for. Numerous underwriting accommodations are made for veterans buying or refinancing a home with a VA loan.
Myth 6: VA loans are too expensive with the upfront Funding Fee.
Fact: Actually. when you do the math, a VA loan is often cheaper than a FHA and Conventional loans!
Myth 7: Vets have to be discharged or retired to use their VA loan benefit.
Fact: Active service members get full access to the VA mortgage benefit
Myth 8: Members of the Reserves or National Guard are not eligible.
Fact: Members Of the Reserves or National Guard are eligible too after 6 years of honorable service.
Myth 9: Vets Who are Serving away from home or overseas can't get a VA loan until they Can return to occupy the property.
Fact: Military men and woman who are away on active duty can obtain a VA loan if they intend to return home within a year or have a a spouse who will occupy the property in the interim.
Myth 10: Widows or Widowers of Vets are not eligible for the VA loan benefit.
Fact: Widows of fallen veterans who died on active duty Or as a result of a service-connected disability maybe eligible for the benefit of a VA loan.
Myth 11: VA loans require perfect credit scores.
Fact: Most VA lenders are looking for a 620 credit score. This varies from lender to lender and may go as low as 580.
Myth 12: VA appraisal is a nightmare.
Fact: If buyers pursue a home in poor condition. The VA Appraisal is certainly nightmarish. Otherwise the VA appraisal isn't terribly different from the average conventional appraisal.
Appraisers use the VA's MPR guidelines to determine if a home is safe. structurally sound, and sanitary. VA loans are not designed to fund fixer-uppers.
The VA wants service members to purchase solid. Move in ready homes, not dilapidated duds. Choose a home in good condition and the V A appraisal will he a breeze.
VA will notify lender about low value prior to issuing appraisal. This gives time to send in additional comparisons for consideration.