Tag Archives: Loans

10 Misconceptions about VA Loans

  1. You can only use them once:  The VA loan program allows subsequent use of the loan program up to the full entitlement.
  2. Only a Veteran can be on the home loan; Spouses can and should be on the loan.  Widows of veterans can qualify in some instances.
  3. You can’t have more than one at a time.  Subject to the limits of your entitlement, you can have more than one VA loan at a time.
  4. You can buy a rental property or vacation home.  Sorry, the VA loan program is for primary residence use only.
  5. The loan is from the Government.  The VA loan program is funded through private lenders but guaranteed by the US Government in the case of default by the homeowner.
  6. You have to have unblemished credit.  The VA loan program allows for bankruptcy and foreclosure after a short waiting period, usually 24 months.
  7. There is mortgage insurance if you don’t have 20% down payment.  The VA loan program does not have a monthly mortgage insurance requirement like the FHA and Conventional loan programs.  It does have a “funding fee” which is added to the loan balance.  This fee ensures the long term viability of the VA loan program
  8. They are an expensive loan-Dave Ramsey says they are but he doesn’t realize that the last few years the rates on Conventional loans have been higher.
  9. The VA does a home inspection; you should hire your own inspector if you have concerns about the property condition.  An appraiser will inspect the property according to the minimum property standards that the loan program requires, but it is not a comprehensive home inspection that a consumer would order.
  10.  I need my original certificate of eligibility or DD214 to qualify; nowadays, we can obtain them online in a very short time.

Sometimes you wish you could just say this……

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