Debunking 8 Common VA Loan Myths

If you’re a veteran looking to purchase a home, there are a few myths about the VA loan benefit that I’d like to clear up for you.

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I just closed a deal with one of my veteran clients not too long ago and I realized that there is a lot of confusion out there about VA loans. Today I’d like to debunk some of these myths for you so that you know what to expect when obtaining a VA loan.

Myth #1: Veterans have only one chance to use their VA loan benefits. This is false. This loan can be used more than one time, allowing you to purchase and sell homes as you please.

Myth #2: VA loans can only be used to buy a house. This is also untrue. You can actually use a VA loan to refinance a property, in some cases, up to 100% of the value of the property.

Myth #3: VA loans are small and only ideal for starter homes. In reality, if you want to buy a $1.5 million home, a VA loan will actually let you do that. The one thing to remember is that you’ll have different limits on the VA loan depending on the state and county that you’re in. For instance, in Southern California, LA, and Orange County, the limit is $625,500; you can purchase a million-dollar property; you’ll just have to make up the difference.

Myth #4: VA loans take too long to process. For real estate agents out there that like to promise a 30- or 45-day close of escrow, it’s possible to do this for VA loans, but I would suggest aiming for the 45-day close just because there are not a lot of VA loan appraisers in certain counties and states throughout the country. For this reason, it may take a property a bit longer to be appraised, but the deal should close fairly easily afterward.

It may take a bit longer to get a VA loan appraisal.

Myth #5: Veterans have to be discharged or retired to use their VA loan benefit. Active veterans can actually use their benefit, even if they’re going to be discharged in the near future.

Myth #6: Veterans serving away from home or overseas cannot get a loan until they can return to occupy the property. If a veteran is active and deployed, as long as they are back within that year or have a spouse that would occupy the home while they are serving, this benefit is still available to them.

Myth #7: Members of the Reserve or the National Guard are not eligible. This is also false. As long as they were honorably discharged after six years of service, members of the Reserve or National Guard can use their benefit.

Myth #8: VA loans require perfect credit scores. Some lenders would ideally like to see a credit score of about 620 or higher, but there are lenders out there who will do it for a credit score as low as 580.

Don’t believe these common myths about VA loans! If you have any other questions about VA loans or Southern California real estate in general, give me a call, shoot me a text, or send me an email. I’d be happy to help you!