The Largest VA House Mortgage Myths—BUSTED!

The VA dwelling mortgage program is a tremendous 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 desires of homeownership just a bit simpler to attain.


This program is a part of the GI Invoice, which was signed into legislation 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’ll be able to think about, so much has modified since then. Most of those modifications have been constructive, offering much more advantages to eligible VA debtors, however they’ve additionally caused some confusion and unwarranted assumptions. The very last thing we wish is for anybody to fall sufferer to VA dwelling mortgage myths.

So take a couple of minutes to separate truth from fiction. This may help you make sure that these widespread VA dwelling 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 dwelling mortgage program, there are additionally charges and shutting prices concerned—similar to with all mortgages. The most important 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 enhance to your month-to-month cost. However it will also be paid by the vendor or with present funds from a good friend or member of the family. Nonetheless you pay it, it doesn’t come near the month-to-month charges on standard loans, akin to PMI, which might run a whole lot of {dollars} per thirty days.

VA Mortgage Timeline

MYTH: VA loans have plenty of crimson tape and take longer to shut.

VA loans are likely to take about the identical period of time to shut as an ordinary standard mortgage or FHA mortgage. The most important components contain getting pre-approved, getting your Certificates of Eligibility (COE) as quickly as attainable (we may help with this), and discovering a house that meets the standards for a VA dwelling mortgage.

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

Jumbo Financing

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

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

A number of VA Loans

MYTH: You should use your VA dwelling mortgage profit solely as soon as, or you’ll be able to’t buy a second dwelling with a VA mortgage should you already personal a house.

You’re completely in a position to make use of your profit greater than as soon as, and you may even use it for a number of VA loans. The one restrict is the quantity of your entitlement. You probably have extra entitlement left, then you should use it for an additional dwelling. In the event you use your profit after which promote your private home, then the entitlement is totally reinstated.

In the event you’re a service member, veteran, or eligible surviving partner, the VA dwelling mortgage profit is right here for you, interval. Changing into a landlord and incomes rental earnings is a part of the American dream for a lot of people, and that features our army heroes.

Whether or not you’re trying to downsize or increase, you’re welcome to buy a brand new dwelling with a VA mortgage even should you additionally financed your present dwelling by way of a VA mortgage.

Foreclosures and VA Loans

MYTH: I can’t get one other VA dwelling 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 exhausting instances. You should buy 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 might 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 difficult, 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 price the customer and vendor extra money.

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 often a fraction of the associated fee {that a} vendor would possibly contribute to on a traditional 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 varieties. 

VA Mortgage Eligibility

MYTH: The VA dwelling mortgage profit is just for many who have served and are out of the army.

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 in a position to make use of your profit. In the event you’re residing off base you’ll be able to even use your BAH towards your private home mortgage funds.

We all know there are different VA dwelling mortgage myths on the market, which is why we’re completely happy 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 suggestion to increase credit score or a dedication to lend. All loans topic to underwriting approval. Equal Housing Alternative