The popularity of VA loans has soared in recent years, surpassing the 1 million mark in 2020, and is on pace to break that record in 2021. But despite the success of the VA home loan program, there is still some skepticism among prospective homebuyers when it comes to VA loans.
Read the top myths about VA home loans and learn the truth behind them so that you can make the best decision on whether or not a VA home loan is the right option for your specific requirements.
Myth 1: Certification is a cumbersome process
The first step in the VA home loan application process is getting an official verification from the VA Office. This certification will assert that the veteran, active-duty military member, or spouse has met the basic eligibility requirements.
In the past, this took a long time to complete since you had to mail a letter to the VA and wait for a hard copy when they replied. Now, the process is done electronically which means you can get results in real-time.
Myth 2: VA appraisals and inspections take ages to finish due to red tape
One of the reasons why VA loans take longer is the smaller number of appraisers in rural areas who are approved to handle VA loans. However, the VA has upped its game by modernizing and streamlining processes.
Today, VA loans close within 55 days on average but there are cases where they close more quickly.
Myth 3: There is a huge chance that you’ll default
VA loans have more relaxed requirements compared to conventional loans. But even with less stringent requirements, VA borrowers rarely default. Furthermore, VA loans are known to have the lowest foreclosure rates when compared to other loan programs!
Myth 4: Sellers are wary about accepting a VA loan buyer’s offer
There are home sellers who believe that they will be required to pay the buyer’s closing fees. This is not true. Typically, the only seller requirement is payment for a termite report and that’s it.
Closing costs are the buyer’s responsibility and not the seller’s.
Myth 5: The savings you get on a VA home loan aren’t as good when compared to conventional loans
False. VA loans are half a point below conventional rates and you don’t have to pay for mortgage insurance.
Need More Information on Your VA Home Loan Application?
Now that we’ve addressed VA home loan myths, you can now gain access to all the great benefits a VA loan provides. If you have more questions, you can ask our VA home loan experts and they would be happy to clear things out with you.