Discussion about common disbeliefs further demonstrates that zero-down, VA-backed mortgages are hard to beat.
Dismiss VA home loan myths about the federally-backed, zero down loan program.
Myth #1 – VA purchase loans are not for short-sale or foreclosed real estate
Myth #2 – Surviving spouses don’t qualify for VA mortgages
Myth #3 – Military members deployed overseas can’t get a VA-guaranteed loan.
Myth #4 – All realtors are good VA home loan advisors
Myth #5 – VA loans take forever to close
Fact #1: VA home loans can be used to purchase foreclosed and short-sale with as little as no money down. VA-eligible borrowers may have an advantage over those who need up to 20% cash down to qualify for conventional loans. A VA appraiser is trained to certify value and safety and can spot red flags of distressed properties.
Fact #2: Veterans, active duty and certain surviving spouses are eligible for VA home loan benefits. Qualified surviving spouses may borrow up to $417,000 (more in high-cost counties) with no money down. And, surviving spouses are exempt from paying the VA funding fee.
Fact #3: Military members deployed overseas can sign a document called power of attorney or (POA) designating a spouse or someone else to act as on their behalf for a VA loan transaction. The POA grants permission for the attorney in fact to sign on behalf of the VA-eligible borrower. The service member must give intent to obtain a VA loan through an email, letter or other correspondence. Only a spouse can satisfy the occupancy rule (move in within 60 days of closing) in a deployed serviceperson’s stead. Otherwise, the borrower serving away from home will be granted an extension of up to 12 months to occupy the home.
Fact #4: A VA certification for real estate agents does not exist. Therefore, a real estate agent should not be used as a reliable source for VA loan information. Real estate agents who are not well-informed about VA loans can even unintentionally dissuade VA-eligible borrowers from choosing the program which may be best for them. A VA specialty lender, one whose majority product is VA-backed loans, can provide reliable VA loan facts.
Fact #5: If a lender is specialized in VA home loans, then closing can often happen within 30 days. The VA-approved lender is given flexibility to decide on its own whether a borrower is a satisfactory credit risk. Even a borrower with extenuating circumstances may close quickly.
To dismiss the myths of VA-backed mortgages and create your own VA Home Loan Story, contact a lending professional.
VA Specialty Lender
iFreedom Direct®, a top VA-approved lender, has served America's brave men and women by providing quality VA loans since 1996. These zero-to-low down mortgages, backed in part by the Department of Veteran Affairs, help eligible borrowers purchase and refinance homes at competitive interest rates. Pre-qualify at www.directvaloans.com or 800-211-9024.
This post was originally posted on 31 November 2013, and was updated on 7 December 2013 to reflect the current situation. Military Pay Military pay rates are set by Congress and the President in the National Defense Authorization Act (NDAA). The 2014 NDAA has been approved by the House of Representatives and the Senate Armed Services Committee. Senate [...]