With no down payment required and the backing of the federal government, it is hard to find fault with VA home loans. And when someone does find some sort of issue, it tends to be false.
Here are four common myths associated with VA mortgages:
Myth 1: VA loans take longer to close than conventional mortgages.
Myth 2: VA loans can only be used once.
Myth 3: VA loans cannot be used to buy a property in foreclosure or short sale.
Myth 4: Members of the military serving overseas do not qualify for VA home loans.
Here are the facts:
Fact 1: When a lender specializes in VA home loans as we do, closing the loan within 30 days is no trouble at all. Since VA-approved lenders have the flexibility to create their own underwriting standards, even borrowers with less than perfect credit can close quickly.
Fact 2: While it is true that you cannot take out a VA home loan while you are still paying on another VA home loan, you can refinance VA loans and you can take out another VA loan once you’ve paid off the first, assuming you haven’t used all of your entitlement.
Fact 3: VA loans with no money down can be used to purchase a short sale or a home in foreclosure. In fact, the no-money-down VA loan can give borrowers the upper hand over those using a conventional loan who need up to 20 percent down. In addition, the VA uses certified appraisals who can spot red flags right away.
Fact 4: When a member of the armed forces is deployed overseas, they can sign a Power of Attorney (POA), which can designate a spouse or friend or family member to represent them in a VA loan transaction. With a POA, a person other than the deployed has the legal ability to act on the deployed’s behalf. However, the POA must still have the service member’s consent in writing (email is fine).
For more information on VA home loans, make sure you speak to an approved VA loan originator.