VA Loans Myth

VA home loans are designed to help people climb the social ladder after serving their country. Many people know that these loans can dramatically improve conventional mortgage offers for veterans. Sadly, there are just as many consumers who get caught up in the misinformation surrounding mortgage assistance. We’re here to debunk some of the myths.

Myth 1: VA Loans Are Just for Veterans

It’s true that veterans are the primary focus of most VA offers. Many VA programs, however, account for the fact that vets aren’t the only ones who need aid.

VA home loans are commonly extended to qualified surviving spouses, who can borrow as much as $417,000 or more depending on where they live. Active-duty military service members can also apply for loans.

Myth 2: VA Loans Take Too Long to Close

As most veterans will tell you, one of the big downsides of dealing with government programs is that you can end up waiting quite some time for the bureaucracy to get its act together. With VA mortgage loan assistance, however, there’s a way to work around this.

The secret typically lies in picking the right lenders. Companies that specialize in VA home loans are more likely to know how to evaluate applicants fairly and minimize closing delays.

Myth 3: You Need to Pick a Realtor That Specializes in VA Loans

Just like some lenders have less experience with originating and processing veterans’ mortgage offers, many realtors may lack the knowledge to walk you through transactions. Because the VA doesn’t certify real estate agents, you shouldn’t depend on yours to help you choose the right program for your financial situation.

Once again, it’s more important to seek lenders who focus on VA-backed mortgages. These providers may be able to offer more reliable advice about certain types of lending options and programs.

Myth 4: VA Mortgage Loans Demand Stellar Credit

One of the best aspects of VA loans is that they’re a lot more accepting of different credit circumstances. Although most lenders want applicants to have FICO credit scores of at least 620, this is still about 40 points lower than what you’d need to meet the minimums with conventional lenders.

If you’ve struggled with debt in the past and had to file for bankruptcy or been foreclosed upon, you’ll find that the one- to two-year waiting period is far more accommodating than the four- to seven-year restrictions imposed by non-VA lenders.

Could a VA loan be right for you? These programs are more accommodating than you might think, so learn more.