The Veterans Affairs (VA) Home Loan is a benefit that is available to more than 22 million veterans and 2 million active duty service members to help them buy, build, repair, retain, or adapt a home for their own personal occupancy. But, 1 out of 3 active-duty military and veterans do not know that they have some of the best home buying benefits available. With the right information, active-duty military and veterans can enjoy this perk and eliminate the VA loan confusion during the home buying process.
Misconception #1:
VA loans are only for honorably discharged veterans.
Fact:
It is available to service members, veterans, and eligible surviving spouses.
Misconception #2:
It is a one-time benefit.
Fact:
Veterans affairs members can enjoy this lifetime benefit. Qualified Veterans can use the VA Loan Guaranty Program over and over again. In fact, it’s possible to have more than one active VA Loan at the same time. Even losing a VA Loan to foreclosure doesn’t mean you’re no longer eligible.
Misconception #3:
It takes longer to close than FHA or conventional mortgages.
Fact:
There’s really not much difference to how long VA loans are closed compared to other loans. According to Ellie Mae’s September 2020 Origination Report, it took an average of 52 days for a VA loan to close – from applying for a mortgage to getting the keys to the home, compared to a conventional loan’s average of 49 days.
Misconception #4:
VA-backed home loans can only be used to purchase traditional, single-structure housing.
Fact:
VA home loans can be used to purchase many types of properties: homes, condos, manufactured homes located in the United States, its territories, or possessions (Puerto Rico, Guam, Virgin Islands, American Samoa, and Northern Mariana Islands). It cannot be used to purchase a cooperatively owned apartment, farm, vacant land, investment property or business loan.
Misconception #5:
You can’t get a VA loan if you’ve had a foreclosure or bankruptcy.
Fact:
VA Loans also allow Veterans and active military to bounce back faster after a bankruptcy, foreclosure or short sale. An applicant must not have any foreclosure or bankruptcy in the past 2 years.
Misconception #6:
VA-backed loans cannot be refinanced easily or effectively.
Fact:
Veterans who have an existing VA-backed home loan and want to reduce their monthly mortgage payments or make payments more stable can take advantage of Interest Rate Reduction Refinance Loan (IRRRL).
You have served the country, now let us serve you. If you or someone you know is thinking of buying or selling, feel free to call the agents at Broadpoint Properties.
