Myth: VA loans are not preferred loan programs as the appraisals come in lower than the sale price.
Fact: VA Appraisals come in at or above market value over 92% of the time and the VA appraisal process is fairly painless. While the appraisal can not be waived for VA purchase financing, a shortened loan contingency can be easily accommodated and is a great way to make your offer stronger.
Myth: You need perfect credit to be approved for a VA loan.
Fact: Every lender has its own credit requirements to verify borrowers, but the VA actually does not describe a necessary minimum credit score. While fairly flexible, typically a score in the 620s or better is suggested to apply for a VA loan.
Myth: Only combat veterans are eligible for VA loans.
Fact: This is false! The VA loan is extended to more than just combat Veterans. You may be eligible if you are a:
- Military Veteran
- Active Duty Servicemember
- Reservist or National Guard Member
- Surviving Spouse
- Academy Cadet or Midshipman
- National Oceanic & Atmospheric Administration (NOAA) Officer
- Public Health Service (PHS) Officer
Myth: You can only use the VA home loan benefit once.
Fact: If you earn a VA home loan benefit, it is yours for life, and in some cases, can be used multiple times at once! Many Veterans use it over the course of their lifetime for all of their home financing needs. You can use it to buy a starter home, then again to upgrade to a larger home, and again to refinance for a lower interest rate and/or take cash out of your home’s equity. As long as you have enough entitlement to back your loan, a VA loan can be a great mortgage choice for all stages of life.
Myth: VA loans have higher interest rates.
Fact: Contrary to popular belief, VA loan interest rates are usually as low or lower than competitive rates on conventional loans. In addition, VA loans allow you to buy a home without a down payment and they do not have mortgage insurance, even if you put less than 20% down. And as a cherry on top, VA loans limit the fees that can be charged offering additional savings to the veteran.
If you think you may be eligible for a VA loan and would like to discuss your options, please give us a call at (760) 930-0569 and one of our loan officers will assist you.