top 14 va loan myths and misconceptions

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Post on 15-Apr-2017

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Have you heard bad things about VA home loans? This type of loan is a great benefit to those who have served in the military, and the Department of Veterans Affairs has guaranteed more than $911 billion dollars in funding since 1944.

Here are 15 of the most common myths and misconceptions about VA home loan benefits:

MYTH #1:“Members of the National Guard or Reserves are not eligible for a VA loan.”

REALITY:

Many factors could affect the time it takes to close on a VA home loan benefit, but with preparation and the proper documents, the timeline could happen within 30 days. Make sure you work with a lender who deals with VA home loans, like Flagship Financial.

MYTH #2:“VA loans are risky.”

REALITY:

Data from the Mortgage Bankers Association indicates that the opposite is true, because VA loans are at the lowest delinquency rates since the 1980s.

MYTH #3:“You can’t buy a short-sale or foreclosure property with a VA loan.”

REALITY:

Yes, you can purchase a foreclosed or short-sale property, as long as it meets the VA’s minimum property requirements.

MYTH #4:“Foreclosure and bankruptcy will bar you from getting a VA loan.” REALITY:

If you had a bankruptcy or foreclosure impact your credit rating, don’t rule out a VA loan just yet. Contact an expert at Flagship Financial Group to discuss your options.

MYTH #5:“You’ll need a big down payment for a for a VA loan.”

REALITY:

Typically, you can obtain a VA home loan with no down payment, and no monthly mortgage insurance obligation.

MYTH #6:“VA loans require a perfect credit score.”

REALITY:

While there is no minimum credit score requirement, each lender must make their loan decision based on the entire loan profile.

MYTH #7:“Widows and widowers are not eligible for a VA loan.” REALITY:

If you are an unmarried surviving spouse of a veteran who died on active duty, you may be eligible for VA home loan benefits.

MYTH #8:“You need to occupy the property to geta VA loan.” REALITY:

Those serving overseas on active duty can obtain a VA home loan if they plan on occupying the property within one year, or if their spouse will occupy the property.

MYTH #9:“Members of the National Guard or Reserves are not eligible for a VA loan.”

REALITY:

If you serve in the Reserve or National Guard, you may qualify for a VA home loan if you meet certain requirements.

MYTH #10:“VA loans are open only to retired or discharged veterans.” REALITY:

Not only can former servicemen and women qualify for a VA home loan benefit, but active service members can too.

MYTH #11:“Qualifying for a VA loan is a difficult process.”

REALITY:

The U.S. Department of Veterans Affairs explains the process of qualifying for a VA home loan benefit. The VA home loan program provides an easier qualification process for veterans who may not have qualified for other home loan options.

MYTH #12:“It can take a long time for your VA loan to close.”

REALITY:

Many factors could affect the time it takes to close on a VA home loan benefit, but with preparation and the proper documents, the timeline could happen within 30 days. Make sure you work with a lender who deals with VA home loans, like Flagship Financial.

MYTH #13:“VA loans are small.”

REALITY:

While there are no limits to the size of the loan, there are limits on the liability that the VA will assume, which also depend on the county.

MYTH #14:“You can only purchase a home with a VA loan.”

REALITY:

VA loan financing can be used to purchase a home, repair or improve an existing home, or purchase a lot.

www.flagshipfinancialgroup.com

WE CAN ADDRESS YOUR CONCERNS

Talk to the experienced loan officers at Flagship Financial Group to answer any questions you have about any of these myths and

misconceptions. We’re here to help!