The VA Home Loan helps military families achieve the dream of homeownership and is considered one of the strongest VA benefits available. Unfortunately, there are a lot of rumors or misconceptions that may be stopping military members and their families from fully benefiting from a VA loan. That’s why we’ve taken the time to dispel some of the most common misconceptions and separate fact from fiction.
Only combat veterans receive this benefit.
False. Active duty service members, veterans, reservists, and some surviving spouses can earn eligibility for the VA Loan.
You can only use your VA loan benefit once.
False. There is no limit to how many times you can take out a VA Loan, only a limit on how much you can borrow at one time. Once an eligible Active Duty, Veteran, Reservist, and or eligible surviving spouse has access to a VA Loan, it will never go away.
VA Mortgage benefits expire.
False. The VA loan benefit never expires for eligible participants.
The VA borrower is limited to one VA Loan at a time.
False. In some cases, an Active Duty Service Member or Veteran can have multiple VA loans at the same time as long as they have not exceeded the maximum entitlement and eligibility. The borrower may have to make a down payment, should they exceed their entitlement. In order to have multiple VA loans, the borrower must be able to afford both payments and sufficient entitlement is required.
You cannot lease your home.
False. According to the law, homeowners with a VA loan are entitled to rent out their home, if previously occupied as their primary home. For instance, if VA buyers have orders to relocate, they may rent out their home. However, when applying for a VA loan, the homeowner must certify that they intend on making the home their primary residence. Borrowers are not permitted to use their VA benefits to purchase a rental property.
You need a 20% down payment.
False. Eligible borrowers can qualify with a VA Loan with as little as 0% percent down.
You cannot have another VA loan if you have a short sale or foreclosure on a VA Loan.
False. They can still qualify for another VA loan, even if there is a claim on the borrower’s entitlement. The maximum amount that they would qualify for may be less due to the claim, but they are still eligible for another VA loan after the required waiting period as established by VA on a foreclosed property.
The information contained herein (including but not limited to any description of lending programs and products, eligibility criteria, interest rates, fees and all other loan terms) is subject to change without notice. This is not a commitment to lend.