CLEAR ANSWERS FOR MILITARY FAMILIES
VA LOAN MYTHS:
Busted
There are a lot of misconceptions about VA loans. Let’s clear up some of the most common ones.
MYTH
You need a down payment to use a VA loan.
1.
FACT
In most cases, $0 down is possible! The VA does not require a down payment, making this one of the biggest benefits available to eligible service members and veterans.
MYTH
You can only use your VA loan benefit once.
2.
FACT
Your VA loan benefit is a lifetime benefit. You can use it multiple times throughout your life, and in some situations, you may even be able to have more than one VA loan at the same time.
MYTH
Every lender handles VA loans the same way.
3.
FACT
Not at all. VA loans are provided by private lenders, and individual lenders can have their own requirements, credit standards, rates, fees, and underwriting guidelines. Working with a lender who is experienced with VA loans can make a big difference. We can connect you with an expert!
MYTH
The VA requires a minimum credit score.
4.
FACT
he VA itself does not set a minimum credit score. However, individual lenders may have their own minimum credit score requirements.
MYTH
VA loans can only be used near military bases.
5.
FACT
VA loans are not limited to military communities. Eligible buyers can use their VA loan benefit to purchase qualifying properties throughout the United States and certain U.S. territories.
MYTH
VA loans are only for single-family homes.
6.
FACT
VA financing may be used for more than just a traditional single-family home. Depending on VA and lender requirements, eligible properties can include condos, manufactured homes, new construction, and properties with up to four units.
MYTH
You have to be a first-time homebuyer.
7.
FACT
Nope! VA loans are not just for first-time buyers. You can use your VA loan benefit for your first home, your next home, and potentially many homes throughout your lifetime.
MYTH
VA loans require monthly mortgage insurance.
8.
FACT
One of the major advantages of a VA loan is that there is no monthly private mortgage insurance (PMI), even with $0 down. A VA funding fee may apply unless the borrower qualifies for an exemption.
MYTH
There is always a maximum VA loan amount.
9.
FACT
Borrowers with full VA entitlement do not have a VA-imposed loan limit. You still have to qualify for the loan with your lender, and the property's value must support the purchase price.
MYTH
You can use a VA loan to buy an investment property.
10.
FACT
VA loans are designed to finance a primary residence. However, you may be able to purchase a property with up to four units, live in one unit, and rent out the others, subject to VA and lender requirements.
MYTH
If you PCS, you have to sell your current home before using your VA loan again.
11.
FACT
Not necessarily! Depending on your remaining VA entitlement and financial qualifications, you may be able to keep your current home and use your remaining VA benefit toward another home.
HAVE MORE VA LOAN QUESTIONS?
VA loans can be an incredible benefit, but every buyer’s situation is different. Whether you’re buying your first home, PCSing to a new duty station, or wondering how much VA entitlement you have remaining, we can help connect you with the right resources.