The VA house mortgage program is an incredible profit for our deserving active-duty service members, veterans, and surviving spouses of veterans. Whereas nobody may ever repay you for the sacrifices you’ve made, the VA mortgage was created to make your goals of homeownership just a bit simpler to realize.


This program is a part of the GI Invoice, which was signed into regulation by President Franklin Delano Roosevelt (FDR) in 1944. At the moment, a VA mortgage maxed out at $2,000, with half of that assured by the federal government.

As you possibly can think about, so much has modified since then. Most of those modifications have been optimistic, offering much more advantages to eligible VA debtors, however they’ve additionally led to some confusion and unwarranted assumptions. The very last thing we wish is for anybody to fall sufferer to VA house mortgage myths.

So take a couple of minutes to separate truth from fiction. This can assist you make sure that these frequent VA house mortgage myths gained’t derail your American dream.

VA Funding Charges

MYTH: The VA funding charge will make my mortgage funds unaffordable.

Whereas there are a lot of advantages to the VA house mortgage program, there are additionally charges and shutting prices concerned—similar to with all mortgages. The largest distinction within the VA funding charge is that it’s a one-time upfront charge that may be paid in a number of methods. 

It may be wrapped into the mortgage quantity and paid month-to-month with a small improve to your month-to-month cost. However it may also be paid by the vendor or with present funds from a buddy or member of the family. Nonetheless you pay it, it doesn’t come near the month-to-month charges on standard loans, similar to PMI, which might run a whole bunch of {dollars} monthly.

VA Mortgage Timeline

MYTH: VA loans have a variety of purple tape and take longer to shut.

VA loans are likely to take about the identical period of time to shut as a regular standard mortgage or FHA mortgage. The largest elements contain getting pre-approved, getting your Certificates of Eligibility (COE) as quickly as doable (we can assist with this), and discovering a house that meets the standards for a VA house mortgage.

Typically value determinations in additional rural areas can take a little bit longer due to a scarcity of VA appraisers. Moreover, any repairs on the appraisal which might be marked as “topic to” should be accomplished prior to shut.

Jumbo Financing

MYTH: Jumbo financing just isn’t obtainable for VA loans.

One other a kind of VA house mortgage myths busted! VA completely affords jumbo loans, however technically they’re not referred to as “jumbo,” because it’s all based mostly on eligibility and entitlement. Whereas there’s not a tough mortgage restrict, generally lenders will go as excessive as $2 million if the veteran qualifies.

A number of VA Loans

MYTH: You should utilize your VA house mortgage profit solely as soon as, or you possibly can’t buy a second house with a VA mortgage for those who already personal a house.

You’re completely ready to make use of your profit greater than as soon as, and you’ll even use it for a number of VA loans. The one restrict is the quantity of your entitlement. When you have extra entitlement left, then you need to use it for one more house. Should you use your profit after which promote your private home, then the entitlement is absolutely reinstated.

Should you’re a service member, veteran, or eligible surviving partner, the VA house mortgage profit is right here for you, interval. Turning into a landlord and incomes rental revenue is a part of the American dream for a lot of people, and that features our navy heroes.

Whether or not you’re seeking to downsize or develop, you’re welcome to buy a brand new house with a VA mortgage even for those who additionally financed your present house by way of a VA mortgage.

Foreclosures and VA Loans

MYTH: I can’t get one other VA house mortgage as a result of I misplaced my entitlement in a foreclosures.

Right here’s a reality bomb for you: Service members, veterans, and eligible surviving spouses can use their VA entitlement once more, even when they’ve fallen on arduous instances. You should purchase a house utilizing a VA mortgage as quickly as two years after a foreclosures or chapter has occurred. Since a part of your entitlement was “misplaced” by way of foreclosures, there could or will not be a requirement for a down cost as a result of there’s solely partial entitlement remaining.

We all know this course of might be tough, which is why our trusted APM Mortgage Advisors are right here that can assist you navigate the VA mortgage course of, no matter your circumstances.

VA Mortgage Prices

MYTH: VA loans value the customer and vendor more cash.

VA loans sometimes have fewer prices for all concerned within the transaction. Whereas it’s true that this system permits for sellers to pay the funding charge, it’s not a requirement. And the funding charge is usually a fraction of the associated fee {that a} vendor may contribute to on a standard mortgage.

All charges charged on VA loans are regulated by the federal authorities and are sometimes decrease throughout the board than different, extra conventional mortgage sorts. 

VA Mortgage Eligibility

MYTH: The VA house mortgage profit is simply for many who have served and are out of the navy.

VA loans can be found to anybody who meets the standards, together with these in lively service. In case you are nonetheless serving however have met the necessities, you’re completely ready to make use of your profit. Should you’re residing off base you possibly can even use your BAH towards your private home mortgage funds.

We all know there are different VA house mortgage myths on the market, which is why we’re blissful to stroll you thru your mortgage choices and the method of deciding whether or not a VA mortgage works for you. Click on right here to attach with an APM Mortgage Advisor and VA specialist in your space, and we’ll set the file straight as soon as and for all.

Disclaimer: Charges, phrases, applications and underwriting tips topic to alter with out discover. This isn’t a proposal to increase credit score or a dedication to lend. All loans topic to underwriting approval. Equal Housing Alternative

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