21 Apr 5 VA Loan Myths Debunked
Policies defined by the Veteran Affairs govern VA Loans. It is a closed-knit program, and due to lack of information, many myths are prevailing around it. Today we will clarify the most common myths associated with VA Loans.
- Myth 1 – A common misconception is that VA purchase loans cannot be used for short-sale or foreclosed real estate.
- FACT: VA home loans are approved for purchasing foreclosed and short-sale with no money down. This gives veterans an upper hand over others who must come up with at least 20% cash down to qualify for conventional loans. Trained VA appraisers will certify the value and safety and can help veterans identify shortcomings of a distressed property.
- Myth 2 – Surviving spouses cannot take advantages of VA mortgages
- FACT: Veterans, active duty, and qualifying surviving spouses are fit for VA home loan benefits. Surviving spouses can borrow up to $417,000 with no money down. And, they are also exempt from paying the VA funding fee.
- Myth 3 – Military members deployed overseas are not eligible for a VA-guaranteed loan.
- FACT: Military members stationed overseas can approve a document called a power of attorney or (POA) appointing a spouse or someone else to perform as on their behalf for a VA loan transaction. The POA permits the attorney in fact to sign on account of the VA-eligible borrower. The service member must provide the intent to obtain a VA loan through an email, letter, or other correspondence. Only a spouse can meet the occupancy rule (move in within 60 days of closing) in a deployed serviceperson’s stead. Otherwise, the borrower serving away from home will be given an extension of up to 12 months to occupy the home.
- Myth 4 – Every realtor is a qualified VA home loan advisors
- FACT: There isn’t a VA certification for real estate agents. Therefore, you should not trust a real estate agent for a reliable information source of a VA loan. Real estate agents who are not well-informed about VA loans can even inadvertently hinder VA-eligible borrowers from accepting the program, which may be best for them. A VA specialty lender, one whose majority product is VA-backed loans, can provide reliable VA loan facts.
- Myth 5 – VA loans closing take a lot of time.
- FACT: With a specialized VA home loan lender, the closing can often happen within 30 days. The VA-approved lender is given the flexibleness to decide on its own whether a borrower is an adequate credit risk. Even a borrower with extenuating circumstances may close quickly.