5 Myths About Using Your VA Loan
VA home loans are not only one of the best military benefits, they are also one that a large percentage of veterans don’t know they have or are informed enough about to benefit from. Alongside the lack of knowledge of VA home loans, there are plenty of misconceptions on how they work, what’s included and not included and what is expected. I’m breaking down some of the top myths about using a VA loan!
Myth #1:
There Aren’t Any Closing Costs On The Buyer’s End
Though closing costs aren’t quite the same as those on other mortgages, there are still closing costs involved with homes purchased with a VA loan. You can expect to pay around 2% in closing costs when utilizing your VA loan. Yes, there will be closing costs but they are as minimal as they can be and you’ll avoid some fees and have a controlled origination fee.
Myth #2:
Terms to qualify
Worried about not qualifying for your VA loan? There are some misconceptions on what you need in order to qualify but they aren’t as complex as you may have thought. Here’s an easy breakdown:
Minimum of 90-days if currently active duty
OR
Minimum of six years of service in the national guard or reserves
Surviving spouses of Veterans, Prisoners of War or missing in action may also be eligible for loans.
Myth #3:
The Government Sets Interest
The VA does not control or set the interest on your VA loan rather it’s the mortgage lender that sets their own rates. Another great benefit of VA loans is that, even though set by the mortgage lender, generally your interest rate will be lower than the average.
Myth #4:
”I Have Bad Credit So I Won’t Qualify.”
A poor credit score is a common concern that I hear about when it comes to VA loans but a “bad” credit score shouldn’t deter you from seeing what you can qualify when using your VA loan. You would be surprised to see what you might actually qualify for with your current credit score! I’ve seen borrowers with as low as a 400 credit score qualify for a VA home loan when they didn’t think they had a fighting chance.
But, If for some reason you aren’t able to get a loan at that moment with your current credit score, the mortgage lender will be able to tell you what you need or what you should work on getting to in order to be able to qualify.
Myth #5:
VA Loans Take Too Long To Process and Close
Another question I receive from clients using a VA loan is their concern about how long it will take to close. This is a common misconception and shouldn’t keep you from starting your home buying process. The truth is there isn’t much of a difference between a VA loan and a conventional loan when it comes to closing times. I currently have a lender that closes VA loans in 14 days!
If you’re looking for more information about using a VA loan in San Diego, CA, you can reach out to me directly and I’d be happy to walk you through what you’ll need to get started and connect you with lenders that I highly trust!
