As a VA-approved lender, we at 1st United Mortgage have helped numerous military members and veterans achieve their dream of homeownership through the VA home loan program. Unfortunately, there are many myths and misconceptions surrounding VA home loans that can prevent eligible borrowers from taking advantage of this exclusive benefit. In this blog, we will debunk some common VA home loan myths.
Myth #1: VA Home Loans Take Longer to Close
One common myth about VA home loans is that they take longer to close than conventional mortgages. This is not true. In fact, VA home loans can often close more quickly than other types of mortgages. The VA has strict requirements for the timeline of the loan process, and lenders are incentivized to close loans quickly to maintain their status as a VA-approved lender.
Myth #2: VA Home Loans are Only for First-Time Homebuyers
Another myth about VA home loans is that they are only available to first-time homebuyers. This is not true. The VA home loan program is available to eligible military members and veterans, regardless of whether they have owned a home before.
Myth #3: VA Home Loans Have High Interest Rates
Some borrowers believe that VA home loans have higher interest rates than conventional mortgages. This is also not true. In fact, VA home loans often have lower interest rates than other types of mortgages. This is because the VA partially guarantees the loan, which reduces the lender’s risk and allows them to offer more favorable terms to borrowers.
Myth #4: VA Home Loans Require a Down Payment
Many borrowers believe that VA home loans require a down payment. This is not true. VA home loans offer 100% financing, which means that eligible borrowers can purchase a home with no money down.
Myth #5: VA Home Loans are Only for Those with Perfect Credit
Another myth about VA home loans is that they are only available to borrowers with perfect credit. This is not true. While the VA does not set a minimum credit score requirement, most lenders will require a credit score of at least 620. However, VA-approved lenders are often more flexible with credit score requirements than other lenders.
Myth #6: VA Home Loans Have High Fees
Some borrowers believe that VA home loans have high fees. This is not true. While VA home loans do have a funding fee, it is often lower than the fees charged by other types of mortgages. Additionally, many borrowers can roll the funding fee into their loan amount, which means they do not have to pay it out of pocket.
Myth #7: VA Home Loans Can Only be Used Once
One common myth about VA home loans is that they can only be used once. This is not true. Eligible borrowers can use their VA home loan benefits multiple times, as long as they pay off their previous VA home loan or sell the property.
Myth #8: VA Home Loans are Difficult to Qualify For
Another myth about VA home loans is that they are difficult to qualify for. This is not true. While the VA does have eligibility requirements, such as serving on active duty for a certain period or being an honorably discharged veteran, these requirements are often less stringent than those required by other types of mortgages. Additionally, VA-approved lenders are often more flexible with income and credit requirements than other lenders.
Myth #9: VA Home Loans Require Mortgage Insurance
Many borrowers believe that VA home loans require mortgage insurance. This is not true. VA home loans do not require mortgage insurance, which can save eligible borrowers thousands of dollars over the life of their loan.
Myth #10: VA Home Loans are Only for Certain Types of Properties
Finally, some borrowers believe that VA home loans can only be used to purchase certain types of properties, such as single-family homes. This is not true. VA home loans can be used to purchase a variety of properties, including single-family homes, condominiums, and multi-unit properties. However, the property must meet certain requirements, such as being in good condition and being the borrower’s primary residence.
Contact 1st United Mortgage to Learn More
There are many myths and misconceptions surrounding VA home loans, but it is essential to understand the facts before making any decisions. VA home loans offer many benefits, including 100% financing, lower interest rates, and no mortgage insurance. At 1st United Mortgage, we are committed to helping eligible military members and veterans take advantage of this exclusive benefit.
If you are interested in learning more about VA home loans or would like to apply for a VA home loan, please contact us at 1-931-548-1985 or visit our website. Our team of experts has extensive experience working with the VA home loan program and can help guide you through the process. Don’t let myths and misconceptions hold you back from achieving your dream of homeownership. Contact us today to get started.