5 myths about VA loans

by | Jan 13, 2022

The Veterans Affairs loan program supports the nation’s active and retired servicemembers in their new mission of owning a home.

As a federally backed program, the VA loan offers several benefits and cost-saving opportunities to qualified servicemembers and their families.

Despite the many perks and advantages, however, it can be easy to lose sight of all the positives. The following facts will debunk some of the nonsense surrounding VA loans and will reassure you and your family that a VA loan is an excellent pathway toward homeownership.

Myth: VA loans can only be used once

The truth is that qualified servicemembers and their families can reap the benefits of a loan that’s low interest, requires no mortgage insurance or down payment more than once.

There is no limit as to how many times eligible applicants can take advantage of the loan program. In some cases, it’s possible to have multiple loans at one time.

Myth: All lenders will service my VA loan

This is not necessarily true as lenders must be approved by, and work directly with, the VA to service this type of loan.

You can work directly with the Jaro Team on all types of loans, including the VA loan program. More information is provided below.

Myth: VA loans feature above-market interest rates

Applicants might assume that they’ll take on a higher interest rate since the loan lacks a down payment requirement and other cost-saving features.

Believe it or not, the loan’s savings extend to interest rates. VA loan applicants will also enjoy today’s low interest rates. In some cases, VA loan applicants will receive even lower rates that are below conventional lending standards as a thank you for their service.

Myth: Appraisal process scares away sellers

False. The appraisal process, which is a third-party evaluation of the home’s value, will not differ from other loan processes such as FHA or conventional lending.

There’s no reason why a seller would prefer a non-VA loan offer over the one you submit.

In many cases, lenders require an appraisal to ensure that the home is worth the asking price and that the loan aligns appropriately with the final price.

Myth: Applicants must have excellent credit score, no foreclosure

Remember, the VA loan is designed to assist eligible service members through homebuying support and lenient borrowing requirements. A checkered financial history does not disqualify individuals from getting a loan. If the applicant foreclosed on a home, they’ll have to wait just two years before reapplying.

Applicants with less-than-ideal credit scores will be considered for a loan too.

If you select the Jaro Team, we will work hard to ensure you enjoy all the benefits of housing assistance through the VA loan program.

Since the mortgage is federally backed and guaranteed, applicants such as yourself will enjoy low interest rates that compete or sometime beat out conventional home lending terms. Contact us to learn more about the program details and eligibility.

Premier Mortgage Resources, LLC is not affiliated with or an agency of the federal government.  The interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax-deductible for federal income tax purposes and the consumer should consult a tax adviser for further information regarding the deductibility of interest and charges.