Busting Four Common Myths Surrounding a VA Home Loan
One of the greatest things that someone can experience is home ownership. Having your own space to relax and unwind is a dream many people have. Veterans once found that it was extremely difficult to obtain what is needed to own a home. Recent changes have allowed for most veterans to enjoy a much easier path to home ownership through a VA home loan. The VA home loan has helped over 22 million veterans obtain their own home. You will find there are a few common misconceptions associated with obtaining this type of loan. In this post, you will learn four VA home loan myths.
- Veterans Receive Higher Rates
You likely know that veterans have a harder time building and obtaining credit. These brave men and women are often keeping areas safe that are located in foreign places. Many veterans would come back home to find that they had amassed no real credit. Not having credit formed can make it harder to qualify for large purchases including a home. The truth is that a VA home loan program is known for giving those in the military lower than normal rates.
- You Need to Save for a Large Down Payment
Many homeowners remember saving up for a large down payment. It?s understandable for a veteran to wonder how much they will need to save. Fortunately, VA home loan eligibility is not based on having a down payment. Someone who is enrolled in a VA home loan program doesn?t need to save anything towards a down payment since it isn?t required. In the year 2016, over 700,000 home loans were guaranteed across the United States by the VA. You may wonder how long does it take to get pre approved for a VA. Luckily, the approval time for a VA home loan is the same, if not slightly quicker, than a standard home loan.
- A Perfect Credit Score is Needed
It is common for potential home buyers to stress out about their credit score. Tighter restrictions are placing more of an emphasis on having good credit. However, it?s tough for veterans to be able to start building their credit at an effective rate. The VA home loan program was created to help veterans with an understandably lower credit score. Veterans need not worry about having a high credit score to obtain a home. VA home loan rates are lower than what an average home buyer will work with.
- You Still Have to Pay Mortgage Insurance
Another common misconception is that you will have to pay for additional monthly mortgage insurance. Not only does a VA home loan not require insurance, many are completely financeable. It?s understandable to see why so many veterans choose to utilize the advantages of the VA home loan. Not having to worry about monthly mortgage insurance is a huge advantage of obtaining a veterans loan.
In closing, there are several common misconceptions surrounding a VA home loan. One myth is that veterans receive higher rates through a VA loan. It is true that, under normal circumstances, veterans are charged higher rates. However, that is only through standard loans. Veteran?s loans are specifically created to charge these people lower rates than what they would traditionally find. A veteran obtaining a VA home loan would not need to have a large down payment saved up. Veterans home loans require no down payment which is a burden many home buyers have. A veteran does not need to have flawless credit to obtain a VA home loan. There are allowances that can be made, in certain situations, to allow for bankruptcies and other blemishes to be overlooked. The VA home loan is allowing for many veterans to have a home to call their own.