Common Myths About VA Loans

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Common Myths About VA Loans
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Getting your home mortgage through the VA
guaranteed home loans for veterans program is
good way to acquire financing for your purchase
at a favorable interest rate.
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The program has allowed millions of veterans and
active duty service members to purchase a home
often without a down payment and at a better
interest rate than with conventional loans.
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Dispelling some of the myths about the VA home
loans will help homebuyers understand the
requirements of the program..
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Myth 1 The Application Process Is Complicated
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Myths about the complexity of the VA home loan
application process have discouraged many people
from taking advantage of this helpful program.
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It is true that you will have to provide proof of
your service record.
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This proof is accomplished by a number of
specific forms, depending on your status.
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However, many lenders have specially trained loan
personnel to help you find the correct documents
for your application.
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Myth 2 You Must Have Perfect Credit
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Even if you dont have a perfect credit record,
you may be approved for a loan under the VA
guaranteed home loan program.
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However, your credit score may affect the
interest rate of the loan.
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Most VA loan providers require a credit score of
620. This number is significantly below the score
required for most conventional loans.
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A perfect credit score is 850, and an average
score is around 763. So the VA home loan program
is quite lenient regarding credit scores.
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Myth 3 You Can Use A VA Loan To
Purchase Investment Property
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The VA guaranteed home loan program requires that
you use the property as a primary residence.
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These loans were designed to provide guaranteed
loans to make it easier for first time buyers to
purchase a home for themselves and their families.
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Homeowners who refinance through the VA
streamlined refinance program do not have this
requirement.
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Myth 4 Loan Fees For VA Loans Are Expensive
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While its true, acquiring a VA guaranteed home
loan involves paying a fee for the program, this
amount is not prohibitively expensive, and it can
be rolled into the loan amount.
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This fee helps to fund the VA loan program so
that others can also benefit. Currently the
funding fee is 2.15 percent for a no down payment
loan.
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Myth 5 Home Appraisals For the VA Program Can Be
A Problem
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This myth has circulated because the VA home loan
program does require that the property conform to
minimum standards in regard to plumbing,
electricity, roofing and termite infestation.
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If these systems are in good condition, the VA
and the lender are assured that the home is worth
the loan amount.
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Myth 6 Approval For A Loan Is Guaranteed For
the Military
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No one is guaranteed to get a home loan.
Applicants must fulfill basic loan requirements.
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The guarantee part of the VA home loan program
only guarantees that the lender will get their
money back if the homeowners cannot pay the
mortgage.
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However, a lender who is guaranteed to get their
money is more likely to provide a loan to an
applicant.
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A VA loan specialist can answer questions about
the program and can help you to acquire your home
financing faster and more easily.
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Contact your local VA loan specialist today to
start the process toward owning your own home.
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Our VA Loan Specialist helps veterans obtain the
loans they are entitled to.
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He served in the United States Marine Corps, and
now devotes himself to the Veteran home buyer in
the Phoenix area, fulfilling a passion of his
while at the same time helping others achieve
home ownership.
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Be a proud homeowner today.
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For more details call 480-351-5904 or visit the
site _at_ www.valoansforvets.com
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VA Loans for Vets 7702 E. Doubletree Ranch Road,
Suite 220 Scottsdale, AZ 85258 Phone (480)
351-5904 Email jimmyv_at_fcbmtg.com