Since its inception in 1944, the Department of Veteran Affairs has helped over 22 million veterans become homeowners with VA home loans. The VA home loan is a special veterans home loan that allows individuals who have served in the armed forces and their spouses to get great mortgage deals on their homes. The VA home loan offers benefits such as little to no down payment, no mortgage insurance, and very competitive rates.
Despite these benefits, there are a lot of myths about VA home loans that persist. More often than one might think, veterans don't know enough about VA home loans to dispel these myths themselves. To help in that regard, we've compiled a list of the 5 most common myths about VA home loans to clear up some of these myths for you:
Myth: Veterans Affairs loans are not for short-sale or foreclosed homes
Truth: VA home loans can be used to purchase homes that are listed as foreclosed or short-sale. Eligible borrowers have an advantage over those with a traditional loan, as a VA home loan is not subject to the down payment. If the foreclosed home passes the VA appraiser's inspection, then it qualifies for a VA home loan.
Myth: Spouses Don't Qualify For a Veterans Affairs Loan
Truth: As stated in the opening paragraph, the VA loan program is for veterans and their spouses. In simple terms that means any military spouse is eligible for the VA home loan should their partner die in the line of duty. Surviving spouses are even exempt from paying the VA funding fee, and get access to the full $453,100 that a borrower may obtain.
Myth: Service Members Overseas Can't Get a Loan
Truth: If the service member can sign a document called "Power of Attorney," designating someone to act on their behalf for a transaction, a loan can be obtained. The POA grants permission for the designated person to sign on behalf of the service member. However, only a spouse can satisfy what is called the "occupancy rule," which is to move in within 60 days of closing. In some cases, a service member can be granted a 12-month extension to their time to occupy the home. This is in the case of when a service member is about to leave the service and will be moving in after the 60 days.
Myth: All Realtors Are Veterans Affairs Loan Advisors
Truth: A VA certification does not exist for a real estate agent, and so you should not take them as a reliable source for VA loan information. A VA lender, whose majority product is VA home loans, can provide the most accurate and reliable VA loan facts. Consult a professional VA loan lender for information on the loan, or the VA themselves.
Myth: Veterans Affairs Loans Take Forever To Close
Truth: Lenders that specialize in VA loans can have them closed within 30 days time or less. Even borrowers with difficult or strange circumstances that may interfere with the loans ability to close, can still be closed relatively quickly.
VA home loans are one of the best loan options on the market and the best option for veterans. You should take advantage of the loan if you qualify. If you're not certain that you're eligible, don't hesitate to reach out to our team of experts.