The VA mortgage loan program provides many benefits to eligible borrowers, including active military, veterans, and surviving spouses. However, myths and misconceptions can sometimes discourage potential applicants. As VA loan experts, we feel that it is our duty to shed some light on this matter. Today, we’re debunking the top myths surrounding these loans.
VA loans provide competitive interest rates and require little to no down payment. Still, rumors can cause confusion. By clearing up the facts around VA home loans, our goal is to help more borrowers pursue homeownership.
Myth #1: VA Loans are Only for Veterans
While veterans can utilize their VA benefits for mortgage financing, they aren’t the only ones eligible. Active duty service members qualify, as do surviving spouses in certain situations. The key is having access to VA entitlement, which extends beyond just military veterans and retirees. If you have questions about your eligibility, feel free to reach out. Our experts will be happy to take a look at your situation and provide you with additional resources and information.
Myth #2: VA Loans Take Forever to Close
Some people assume VA loans involve more red tape and drag out the closing process. In reality, today’s streamlined systems allow VA loans to close just as quickly as conventional loans in most cases.
VA mortgages can close in as little as a few weeks with proper preparation. (Keep in mind that this timeline may differ depending on the particulars of your situation.) At Mortgage Solutions Financial, we help borrowers get documents in order at the beginning of the application process to expedite underwriting and approval timelines. The key to a quick closing is working with an efficient lender who is familiar with VA guidelines.
Myth #3: VA Loans Have High Interest Rates
VA mortgage rates are not necessarily higher than rates for conventional loans. VA rates are competitive since they’re designed to reduce the barrier to homeownership for military borrowers. Specific loan terms impact rates more than the loan type alone. Additionally, the borrower’s financial situation and credit history can also play a role in impacting the mortgage rate.
Myth #4: You Can Only Use a VA Loan Once
Qualified individuals can leverage their VA entitlement to purchase multiple properties over the course of time. The rules regarding the reuse of VA home loan benefits are often misunderstood. However, the truth is that VA entitlement can be restored after paying off a VA mortgage to reuse for another loan.
Myth #5: VA Loans Require Perfect Credit Scores
The VA does not set requirements for credit. Lenders do. That being said, many lenders do have minimum credit standards. However, perfect credit is not required or expected. VA loans are available to borrowers with fair credit in many cases.
Specific credit policies vary by lender. At Mortgage Solutions Financial, we work with clients to improve credit scores and demonstrate creditworthiness. Things like credit counseling and rapid rescoring can help borderline borrowers qualify.
Get the Real Facts on VA Mortgage Loans
We hope this clears up some of the biggest misconceptions about VA mortgage loans. Their flexibility and advantages are often underestimated! If you’re eligible, VA loans can be a great option. Contact us today to learn more or get started with the process!