As many as one third of home-buying veterans don’t know there’s a loan product designed just for them!
After 70 years of success, you would think that every veteran and active-duty service member would know about the Department of Veterans Affairs home loan program. Given that stat, it’s not as surprising that there are myths about VA loans. Here are a few.
Myth: They’re issued by the VA. Nope. Any lender who participates in the VA program can handle your loan, but the Department of Veterans Affairs is not a lender—it just guarantees the mortgage loan.
Myth: You have to pay PMI. Also not true. Unlike FHA loans, VA loans do not require private mortgage insurance, which saves borrowers a few hundred dollars per month.
Myth: You can only get one. Not only can you use this earned benefit over and over again, you can in certain cases have more than one VA loan at the same time
Myth: They require excellent credit. Not really. VA loans are typically less stringent about credit scores than conventional loans. In this regard, VA loans are similar to FHA products, which also approve borrowers with lower credit scores.
Myth: You can’t get one if you’re overseas. If you grant power of attorney to your spouse, or someone else, to act on your behalf in a transaction, you can use a VA loan to buy a home. Your spouse is the only person who can satisfy the occupancy rule, but if you’re serving overseas, you could get an extension to occupy the home.
If you’re eligible for a Department of Veterans Affairs mortgage loan, find a qualified lender. These products have been helping veterans and active-duty service members borrow funds for homes since the 1940s. Make sure you’re getting your full, earned benefit.