10 Common Myths about VA Mortgage Loans
When it comes to VA loans, most people have some idea of what they are. However, there are many myths and common misconceptions about what VA mortgage loans, including how to apply and the complications that arise. In this article, we’ll debunk some of these common myths so you can become more informed about the buying process for veterans.
Top 10 Most Common Misconceptions about VA Mortgage Loans
It’s easy to get anxious or apprehensive when deciding to apply for a VA loan. Let’s take a closer look at some of the most common myths surrounding VA mortgage loans.
The VA Sits on the Appraisal for Too Long
False. Official VA guidelines estimate anywhere between 7 and 28 business days for appraisals to complete. Therefore, this doesn’t take any longer than conventional loan appraisals.
You Need to Have Very Good Credit for Approval
False. The VA does not prescribe any minimum credit scores. Since the lender will be bringing their own money, each will have their own credit requirements.
There Are Unexpected Out-Of-Pocket Costs
False. Two of the fundamental advantages of going with a VA loan happens to be the free market insurance (so you don’t have to buy it privately) and zero down payment.
There Are Very Strict Buying Guidelines
False. In fact, your VA mortgage loan would go on to cover the following:
- A single-family standalone house
- A condominium
- A multifamily quadruplex
- Building your own home
- Fixer-upper and renovations
- Energy-efficient incorporations
- Manufactured homes as villas lots
- Streamlined refinances
- Cashing out, if you wanted to tap into your equity
The VA Gives out High-Interest Loans
False. Many people refinance their loans through the VA in order to secure lower rates of interest.
Most Veterans Were Not Qualified In The End
False. On the other hand, most of the veterans are eligible. In fact, both the VA and conventional loans had similar rates of closing at 76.1% for the first nine months of 2017.
Only Veterans Are Eligible
False. While active duty lowers the number of days to be qualified, by no means is it mandatory for applying. Here is a list of others who are eligible:
- A veteran
- A reservist/National Guard member
- A surviving spouse
- Public Health Service Officers
- Midshipmen/Academy cadets
- NOAA Officers
This Is a One-Time Deal
False. Your VA home loan benefits stay with you throughout your life. You can even use it multiple times at once.
The VA Is Mired in Bureaucracy
False. Lenders that have been authorized by the VA can underwrite loans directly. Unless your application stands out for one reason or another, you probably won’t even interface with the government.
Active Duty Personnel Can’t Abide by the Occupancy Rule
False. The owner-occupancy rule, as established by the VA, says that within 60 days, the owner must occupy the premises. If you were on active duty serving overseas, you will simply need to ask for an extension of up to 12 months.
As an expert in VA mortgage loans, Mortgage Solutions Financial has thorough knowledge of how VA loans work. Chat with one of our loan officers today to learn more about VA loans and come up with a financing solution that works for you and your family.