Multiple mortgage lending programs are available to buy houses, but the top option for veterans is the VA loan. Unfortunately, the abundance of VA home loan myths prevents many service members from utilizing their full benefits. As a mortgage broker in greater San Antonio, our Champions Mortgage team debunks the program’s top misconceptions.
What Are VA Loans?
VA loans help veterans, active-duty service members, and surviving spouses make it easier to own houses. The program stems back to the 1944 GI Bill signed by President Franklin D. Roosevelt. Benefits of the entitlement include no down payments and no monthly mortgage insurance.
Top 10 Misconceptions About Acquiring a VA Home Loan
What are the biggest VA home loan myths? Check out 10 of them below.
1. Veterans Can Only Use Benefits Once
Let’s say you utilized your benefits to buy a house. In that case, you might assume you couldn’t have another property if you move. That assumption wouldn’t be correct because you could get another property by restoring your entitlement or using leftover funds.
2. You Can’t Purchase a Second Property Under the Loan
People also assume that you can’t own more than one property with VA loans. Yet you could use any entitlement you have after your initial purchase to obtain a secondary house.
3. Funding Fees Create High Monthly Payments
Paying the VA funding fee is a requirement, but it’s a one-time expense. You can choose to split the payment up and slightly increase your monthly mortgage payment or pay the whole fee upfront in full with your own funds.
4. The Loan Processing Time Is Extensive
One of the biggest VA home loan myths is that the loan entitlement takes forever to close. Some mortgage lenders are approved to underwrite VA loans, which shortens the timeline.
5. Property Condition Standards for This Program Will Limit Your Housing Options
The Veterans Administration isn’t as strict about the type and quality of the homes it would finance as it used to be. Today, the requirements are similar to those of conventional and FHA loans.
6. Qualifying for the Program Is Tough
Qualifying for this benefit is relatively easy. You don’t need a high credit score, and the program works for vets, active-duty members, and surviving spouses who haven’t remarried.
7. Active Military Can’t Access These Benefits
One of the biggest VA home loan myths is that you need to be retired or discharged from service to utilize your benefits. Active members qualify after 181 days of continuous service.
8. Military Personnel Overseas Can’t Get Benefits
While it’s true the program is for house purchases that service members will use as their primary, year-round residence, there are exceptions for occupancy requirements.
9. After Foreclosure, You Can’t Secure Another Property With a VA Loan
If you fall on hard times and lose a home you bought with a VA loan, you could use the program again within two years. Still, you might not have the full entitlement.
10. Perfect Credit Scores Are Required
Eligibility criteria for these loans don’t include perfect credit. It’s actually one of the most lenient lending programs available.
Ready To Find Your Dream Home? Contact Champions Mortgage
Understanding VA home loan myths like not being able to use VA loans multiple times and requiring perfect credit scores will help you make the most of your benefits. It also helps to work with one of the best mortgage lenders in the state of Texas.
At Champions Mortgage, we offer flexible financing with low rates and turnarounds as quick as 15 days or less. We strive to make lending a hassle-free process with flexible rates. To arrange a consultation, call (281) 727-2500.
