Date post: | 15-Apr-2017 |
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Economy & Finance |
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Have you heard bad things about VA home loans? This type of loan is a great benefit to those who have served in the military, and the Department of Veterans Affairs has guaranteed more than $911 billion dollars in funding since 1944.
Here are 15 of the most common myths and misconceptions about VA home loan benefits:
MYTH #1:“Members of the National Guard or Reserves are not eligible for a VA loan.”
REALITY:
Many factors could affect the time it takes to close on a VA home loan benefit, but with preparation and the proper documents, the timeline could happen within 30 days. Make sure you work with a lender who deals with VA home loans, like Flagship Financial.
MYTH #2:“VA loans are risky.”
REALITY:
Data from the Mortgage Bankers Association indicates that the opposite is true, because VA loans are at the lowest delinquency rates since the 1980s.
MYTH #3:“You can’t buy a short-sale or foreclosure property with a VA loan.”
REALITY:
Yes, you can purchase a foreclosed or short-sale property, as long as it meets the VA’s minimum property requirements.
MYTH #4:“Foreclosure and bankruptcy will bar you from getting a VA loan.” REALITY:
If you had a bankruptcy or foreclosure impact your credit rating, don’t rule out a VA loan just yet. Contact an expert at Flagship Financial Group to discuss your options.
MYTH #5:“You’ll need a big down payment for a for a VA loan.”
REALITY:
Typically, you can obtain a VA home loan with no down payment, and no monthly mortgage insurance obligation.
MYTH #6:“VA loans require a perfect credit score.”
REALITY:
While there is no minimum credit score requirement, each lender must make their loan decision based on the entire loan profile.
MYTH #7:“Widows and widowers are not eligible for a VA loan.” REALITY:
If you are an unmarried surviving spouse of a veteran who died on active duty, you may be eligible for VA home loan benefits.
MYTH #8:“You need to occupy the property to geta VA loan.” REALITY:
Those serving overseas on active duty can obtain a VA home loan if they plan on occupying the property within one year, or if their spouse will occupy the property.
MYTH #9:“Members of the National Guard or Reserves are not eligible for a VA loan.”
REALITY:
If you serve in the Reserve or National Guard, you may qualify for a VA home loan if you meet certain requirements.
MYTH #10:“VA loans are open only to retired or discharged veterans.” REALITY:
Not only can former servicemen and women qualify for a VA home loan benefit, but active service members can too.
MYTH #11:“Qualifying for a VA loan is a difficult process.”
REALITY:
The U.S. Department of Veterans Affairs explains the process of qualifying for a VA home loan benefit. The VA home loan program provides an easier qualification process for veterans who may not have qualified for other home loan options.
MYTH #12:“It can take a long time for your VA loan to close.”
REALITY:
Many factors could affect the time it takes to close on a VA home loan benefit, but with preparation and the proper documents, the timeline could happen within 30 days. Make sure you work with a lender who deals with VA home loans, like Flagship Financial.
MYTH #13:“VA loans are small.”
REALITY:
While there are no limits to the size of the loan, there are limits on the liability that the VA will assume, which also depend on the county.
MYTH #14:“You can only purchase a home with a VA loan.”
REALITY:
VA loan financing can be used to purchase a home, repair or improve an existing home, or purchase a lot.