It’s a shame that there are myths out there that might hinder eligible servicemembers and Veterans from taking advantage of their hard-earned VA Home Loan benefits. These loans provide significant advantages over traditional loans, allowing military families to live the American dream of homeownership. Let’s examine some of these myths and bust them with the facts.
Myth: You’re limited to only one VA Loan in your life.
Fact: You can have the VA Home Loan benefit for life if you meet the eligibility requirements.
Myth: VA Loans are only for combat Veterans.
Fact: Active-duty servicemembers and Veterans can take advantage of VA Home Loans. National Guard members and reservists are also eligible if they’ve completed at least six years of honorable service, are mobilized for active duty service for a period of at least 90 days, or are discharged because of a service-connected disability.
Myth: VA Home Loans take longer to close than conventional or FHA loans.
Fact: VA Home Loans average 30 days from start to finish, making the timeframe on par with conventional loans.
Myth: Va Loans have more costs than traditional loans.
Fact: Typically, VA Home Loans have fewer costs than traditional loans, but there is the VA funding fee, a levy paid by the new homeowner that helps support the cost of the VA’s program. The VA funding fee is calculated based on your loan amount, your down payment, and whether you’ve had a VA Loan before.
Myth: VA Loans are not for short-sale or foreclosed real estate.
Fact: Eligible Veterans and servicemembers can use their VA Home Loans to buy foreclosed and short-sale properties with no money down. Naturally, a qualified VA-approved appraiser will certify the value and safety of the property.
Myth: Surviving spouses don’t qualify for VA Home Loans.
Fact: Not only are qualified surviving spouses eligible for VA Home Loan benefits, but some may be exempt from paying the VA funding fee.
Myth: You can never have two VA Home Loans at one time.
Fact: You’ll have to meet certain conditions, but owning two homes simultaneously with two VA Loans is possible. For example, let’s say you live in Georgia in a home you financed with a VA Loan and received orders for a permanent change of station (PCS) to California. If you have enough remaining entitlement, you could keep your existing home, rent it out and still secure a second VA Loan with little to no money down to buy a home in California. Speak with your lender to get the specifics on keeping your home and buying another.
Myth: You can only use a VA Loan to buy a house.
Fact: VA Loans to purchase homes might be the most popular, but eligible borrowers can also use the Interest Rate Reduction Refinance Loan (IRRRL), cash-out refinance loan, and the Native American Direct Loan (NADL) program.
Myth: You can only purchase a single-family home with a VA Loan.
Fact: You can purchase a condominium or PUD in a VA-approved complex or a multi-family property with up to four units. You can build a home, buy, and improve a property, or make energy-efficient improvements, and under certain circumstances and with specific lenders, you can purchase a manufactured home.
Myth: A VA appraisal takes forever.
Fact: There is no reason for a VA appraisal to take longer than an appraisal for a conventional loan. Your lender will order the VA appraisal once you’ve signed the purchase contract, and the VA will schedule the next available VA-approved appraiser. Depending on the property location, appraisals can take from about seven to 28 business days.
