Top 10 Veteran Loan Myths and Facts

February 4, 2011 (Chris Moore)
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As a military veteran, you’ve earned and deserve this benefit of military service. VA mortgage loans are the last traditional mortgage loan program to offer 100% financing and refinancing on mortgages and have the most flexible credit guidelines available. But even though the program has amazing things to offer, many veterans are unaware of the full magnitude of their benefit. This sad fact can be explained when you think about how much the VA loan program has changed over the years.

The VA mortgage loan doesn’t have to be difficult to understand, and every American veteran should be able to easily understand the benefits of this loan. In an attempt to change the fact that a great benefit to our service men and women is misunderstood and underutilized, here’s an effort to debunk the top 10 myths of the VA loan:

Myth #1: Veterans only have one chance to use their VA home loan benefit.
FACT: Veterans can use their benefit multiple times throughout their life. Actually, there’s no limit!

Myth #2: VA mortgage loans can only be used to buy a house.
Fact: VA mortgage loans can be used to refinance too – up to 100% of the home’s value in some cases!

Myth #3: VA mortgage loans are small and only ideal for starter homes.
FACT: VA mortgage loans are widely available up to $1,000,000 depending on region.

Myth #4: VA mortgage loans take too long to process and close.
Fact: VA mortgage loans can close just as quickly as conventional loans do.

Myth #5: It’s too difficult to qualify for a government program.
FACT: VA mortgage loans can actually be EASIER to qualify for. Numerous underwriting accommodations are made for veterans buying or refinancing a home with a VA loan and they’re insured by the federal government.

Myth #6: VA mortgage loans are too expensive with the upfront Funding Fee.
FACT: Actually, when you do the math, a VA loan is often cheaper than FHA and Conventional loans! No upfront mortgage insurance fees and no PMI!

Myth #7: Vets have to be discharged or retired to use their VA loan benefit.
FACT: Active service members get full access to the VA mortgage benefit too!

Myth #8: Members of the Reserves or National Guard are not eligible.
FACT: Members of the Reserves or National Guard are eligible too after 6 years of honorable service!

Myth #9: Vets who are serving away from home or overseas can’t get a loan until they can return to occupy the property.
FACT: Military men and women who are away on active duty can obtain a VA loan if they intend to return home within a year or have a spouse who will occupy the property in the interim.

Myth #10: Widows or Widowers of Vets are not eligible for the VA loan benefit.
FACT: Widows of fallen veterans who died on active duty or as a result of a service-connected disability are eligible for the benefits of a VA loan.

VA loans are an excellent way for veterans to purchase a home or refinance. If you’re a veteran, contact a mortgage lender to find out how much you could save with a VA loan.

Or if you’d like to learn more about the benefits you deserve, click here.

Tags: VA, veterans loans, VA mortgage lenders, military service, army, air, force, navy, marines, veterans