Many veterans opt for VA loans instead of other types of loans due to their benefits. For instance, it requires no down payment, allowing veterans access to a loan that does not require having a large sum of money to obtain.
Although VA loans have had a lot of success among veterans, many myths and misconceptions still exist about the loan. Because of this, a lot of veterans have run into financial issues with these loans.
To ensure you do not run into unnecessary trouble, we want to shed light on some of these VA loan myths to reveal the truth behind them.
Myth 1. VA loans are hard to get
Compared to conventional loans, a VA loan will generally have much more lenient financial requirements. Of course, veterans still have requirements to pass, but one of the best things about VA loans is that there are no minimum credit score requirements. A study showed that around 70 percent of all VA loans are approved—a much higher approval rate than other types of loans. In other words, VA loans are much easier to get than other types.
Myth 2. Sellers hate to work with VA loans
This myth generally follows the previous one, where people believe that VA loans are hard to get because lenders generally do not want to provide VA loans. Many borrowers think that lenders have to deal with all sorts of closing fees, making them less likely to accept such loans. However, this is untrue. The only thing they are typically responsible for is a termite report. Other parties will cover closing costs and other fees!
Myth 3. Only one VA loan is allowed per person
Veterans are not stuck with one VA loan for a lifetime. They can get multiple throughout their lifetimes, not to mention various at once. Of course, the reason to get multiple VA loans will differ from individual to individual, but there is no limit to how many VA loans you can get other than having to qualify for them.
Myth 4. There is a limit to the amount that you can borrow
We cannot blame people for believing this myth. While it used to be true, it no longer is. Veterans can now borrow up to $5 million, essentially making it a “limitless” loan that offers a cap much higher than anyone would ever need. However, certain requirements must be satisfied with high amounts, and these requirements will essentially be the only limit.
If you believed any of the myths above, you can breathe a sigh of relief, knowing none of them are true. Remember, VA loans are geared to support veterans on their path to homeownership. If you are looking for a good VA loan, all you need to do is look for reliable and trustworthy vendors.
If you have any questions, do not be afraid to reach out to the lender for clarification. They will be more than happy to help you out. After all, content customers mean good business, and lenders will be more than willing to provide VA loans, given you satisfy their requirements.
Halpern & Associates is a mortgage corporation offering conventional loans, VA loans, and more to satisfy any financial need. If you need VA loans in Miami, reach out to us today!