6 Common VA Loan Myths
The VA loan is something that most people are familiar with. However, there are a lot of facilities about the VA loan program. We are here to help debunk some of these common VA loan myths so you can become more informed about the buying process for veterans.
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Debunking Common VA loan Myths
Many people hold misconceptions about these government-backed loans. Here are the most popular myths, and the truth:
MYTH: I can only use a VA loan once.
TRUTH: The VA loan is a lifetime benefit. You can even use it more than once and at the same time.
Myth: VA Loans Take too long to close
Truth: VA Loans close just as fast as conventional loans.
MYTH: I can only have one VA Loan.
TRUTH: A VA Loan can only be used to purchase a primary residence. In the event you decide to move from your first home, you can keep the first home with your VA Loan, and rent it, or you can use the home as a second home.
MYTH: The VA appraisal process can be a nightmare.
TRUTH: The VA appraisal process doesn’t really differ from your average FHA appraisal process. Conventional appraisals and VA appraisal are very different.
Myth: VA Appraisals tend to undervalue homes.
Fact: ALL appraisals are influenced by subjective judgements and stats from comparable homes.
Myth: VA loans are risky.
Fact: VA Loans have the lowest foreclosure rate of any type of mortgage.
MYTH: If you’ve filed for bankruptcy or have had a foreclosure, then you won’t be able to obtain a VA Loan.
TRUTH: This is only true if the bankruptcy occurred in the past two years from the time of your loan application.
MYTH: VA loans have higher rates.
TRUTH: VA Loans are backed by the government and government loans tend to offer the lowest rate available on the market.* As a “thank you” for your service, your VA Loan eligibility means you can save money over the life of your loan, simply by locking-in a lower interest rate.
MYTH: All lenders offer VA loans.
TRUTH: Lenders have to be approved directly by the VA to offer VA Loans.
Don’t fall for these common VA loan myths. If you have questions regarding your VA loan benefits, contact our team today. Our trusted experts can assist you in sorting through the myths and facts regarding your VA home loan.
VA loans are great options for those who qualify. To learn more about financing a home with a VA loan, check out the VA Home Buyer Guide. Contact a team member when you are ready to get the process started!
*Rates are subject to creditworthiness and eligibility. Eligibility and approval is subject to completion of an application and verification of home ownership, occupancy, title, income, employment, credit, home value, collateral and underwriting requirements. Direct Mortgage Loans, LLC is licensed in Maryland. Direct Mortgage Loans, LLC NMLS ID# is 832799 (www.nmlsconsumeraccess.org). Direct Mortgage Loans, LLC office is located at 11011 McCormick Rd Suite 400 Hunt Valley, MD 21031. This is a paid endorsement. Equal housing lender.*