Most Common Misconceptions About VA Loans
Greg Norris December 20, 2017
Greg Norris December 20, 2017
The Veterans Affairs home loans are unique mortgage options that allow current and former members of the military to own a piece of the American dream by potentially qualifying for homes that they might have thought to be out of reach.
Veterans, active-duty service personnel, and select Reservists or National Guard members are among those who can qualify for VA loans. These flexible loans come with outstanding benefits like no down payment, no mortgage insurance, more lenient credit requirements, and also have the lowest average interest rates on the market.
The National Association of Realtors (NAR) 2017 Profile of Home Buyers and Sellers showed that 18 percent of recent home buyers are veterans, while three percent are active-duty service members.
However, misinformation and misconceptions about VA loans continue to hinder many veterans from actually benefiting from this program, which is a tangible way of showing gratitude for their service to the people and the nation.
FACT: Getting a VA loan is a lifetime benefit.
Some veterans think that they must use the benefit immediately or lose it, or that if they used it once, they can't use it again. The reality is that it is a lifetime benefit. You can use it again to purchase another property, as long as you have paid off your previous VA loan.
FACT: There's not much time difference when closing VA loans compared to any loans.
Many home buyers think that VA loans take more than 60 days to close, but it certainly isn't true. The process has become much more automated and efficient with the Guaranty Program, and it can now be closed in 30 days or less.
Similarly, the average VA mortgage closes in 45 days, according to mortgage industry analyst Ellie Mae. While the average closing time for all loans is 42 days, which only has a three-day difference.
FACT: The VA appraisal isn't really different from the average conventional appraisal.
Unless the buyer pursues a home in very poor condition, then the appraisal process could really be terrible. The truth is that only VA-approved appraisers inspect the homes to make sure they meet minimum property requirements, and to make sure that they are “safe, sound and sanitary.” VA appraisers also tend to have stricter standards than a typical home appraiser. Otherwise, if the service member chooses a home that is in good condition, then the VA appraisal will be a breeze.
FACT: VA loans only require that there has not been a foreclosure or bankruptcy in the past two years.
VA loans are more lenient than other loan products when it comes to bankruptcy and foreclosure. In some cases, it is also possible to get a loan within a year. This is a much shorter period compared to what FHA loans and conventional mortgages require, which includes a 3-year waiting period.
FACT: An agent who's had experience working with military buyers can help you better navigate the process.
While any realtor can technically help you, finding a military-friendly real estate agent who has experienced working with military buyers before — and has the time to focus on your needs — can make a world of difference. For many veterans, housing needs go far beyond the usual housing criteria, such as the number of bedrooms, price range, and location. An agent who specializes in VA loans can help save you an awful lot of headaches as they better understand the loan process, and the VA appraisal, and has a special eye and heart towards your specific situation.
When you put an offer on a home, you'd want to do everything you can to make your bid more competitive.
While it's a cliche that communication is key among successful couples, it couldn’t be any truer.
Here we’ve listed five locations that might make you think twice before living near them.
To provide you with some guidance, we’ve laid out six factors that you should consider.
Here are five time-tested tips to keep in mind and to help guide you on your organizing journey.
The winter season can also offer numerous advantages if you're looking to buy, and here are some of them.
Learning how to be a good neighbor is a skill that can be equally as impactful on you as it can on your neighborhood.
Here are five easy and quick tips to make the Thanksgiving cleanup process easier and ensure the day’s more enjoyable.
Asking the right questions can help you get as much information as you need to put together a competitive offer.
Contact me today for an unprecedented experience that you will never forget and you will completely understand how I Turn Transactions into Relationships!
