We've all heard of some VA Loan Myths. Time to debunk some of the most common ones we hear!
If you're a veteran, active duty service member, or military spouse, you've probably heard a lot about VA loans, some true and some false.
As a Navy veteran and now a realtor in San Diego, I’ve seen firsthand how misinformation can keep military families from taking full advantage of one of the best home buying benefits available. Lets get into some myths so you can make smart, confident moves towards home ownership.
MYTH #1- MOST COMMON
"YOU CAN ONLY USE YOUR VA LOAN ONCE"
WRONG! The truth is you can use your VA Loan multiple times! You can pay off your previous loan, sell the home and restore full entitlement, or the best one, you may have enough entitlement left over to buy another home without selling the first one!
This goes off of the county loan limit of where you are buying, and sometimes you can even have enough for a 3rd home!
Let me give you an example. If you bought a home in Virginia for $200,000 and you wanted to buy a second home in San Diego. You have alittle over $800,000 in entitlement for you to purchase a second home with your VA Loan, 0% down! That's because the county loan limit in San Diego County is $1,066,000.
MYTH #2- VA LOANS TAKE FOREVER TO CLOSE.
The truth is VA Loans can close just as fast as any other loan type.
VA Loans do have a reputation for being slow, but depending on where you're at, who your loan officer and realtor are, you can close in less than 30 days. My quickest, 12 days! You just want to make sure you're working with a team who knows what they are doing and are experienced with VA Loans. Delays usually come from paperwork or inexperienced teams, not the VA Loan itself!
MYTH #3- YOU NEED PERFECT CREDIT TO QUALIFY.
Truth: The VA is actually more flexible on credit requirements.
While lenders and banks may set their own standard, the VA doesn't require a specific credit score. Most lenders want a 620 or above, and in some cases can go as low as 580.
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