5 VA Loan Myths Dispelled

FacebookTwitterPinterestEmailEmailEmailShare
Woman with question marks drawn over head
(Adobe Stock)

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 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.  And, surviving spouses may be 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 service person’s place.  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.

Take the Next Step

If you're ready to move forward, or just want more information, the first step is to get no-obligation rate quotes.

Story Continues