The VA Home loan is well know by veterans and mortgage professionals however only 9% of 25 million veterans have taken advantage of the VA home loan.
VA Home loans are offered exclusively to our nations veterans, active duty members and reservists. Understanding the VA loan option is important and the program offers benefits such as no downpayment and no mortgage insurance.
The low number of veterans who take advantage of the program is most likely associated with the common myths associated with the program. It is wise to work with a mortgage lender who has experience with VA home loans and can dispel the common myths.
MYTH: VA Loan Applicants Have Low Credit Scores
False! On average the credit score of a veteran is over 700. In fact, Pew Research Center reported that over the past 40 years, Veterans have higher incomes and are less likely to live in poverty. This is especially true for veterans with less education or those who are in ethnic minority groups.
MYTH: The Seller Pays Closing Costs
FALSE! When properly structured the seller would not have to pay the closing costs. The lender cannot charge a VA Home Loan borrower more than 1% in fees and the remaining would need to be added to the loan itself. It is a misconception that the seller would be asked to pay for the difference.
MYTH: You Can Only Use The VA Home Loan Benefit Once
FALSE! The VA loan can be used by a first time home buyer and again when they need to upgrade into a larger home. The VA Home loan has benefits for a borrower at any stage of life.
MYTH: The Government Will Slow Down My VA Home Loan
FALSE! When you work with an independent mortgage lender we have the ability to submit your loan so that it can go to an underwriter without being submitted to the government. We can even help you obtain your COE from the VA website.
Home appraisals on a VA loan are another area where myths have us thinking they take longer. However your VA home loan appraisal shouldn’t take any longer than a normal appraisal. You can expect it back in 7 to 28 business days.
If you are looking to buy a home or refinance your current home using the VA Home Loan program, reach out to the Legacy Mortgage team. We are well versed in VA Home Loan transactions and are committed to making the process as seamless as possible. Call us today, 603-643-7400.